POST UTME BOWEN UNIVERSITY 2017 Economics | Objective

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Question 1
A consumer's utility function is given by U(x, y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 2x + 3y = 30, what is the optimal combination of x and y?
A. x = 6, y = 4
B. x = 4, y = 6
C. x = 3, y = 5
D. x = 5, y = 3
Question 2
A country's balance of payments account shows a trade deficit of ₦50 billion. If the country's foreign exchange reserves are ₦100 billion, what is the percentage change in the reserves?
A. -50%
B. -40%
C. -30%
D. -20%
Question 3
The government of a country imposes a tax on a particular good, which increases the price of the good by 20%. If the demand for the good is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price, what is the new demand equation after the tax is imposed?
A. Qd = 80 - 2P
B. Qd = 90 - 2P
C. Qd = 100 - 4P
D. Qd = 110 - 2P
Question 4
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost is MC = 10 + 2Q. Find the profit-maximizing price and quantity.
A. ₦200, 50 units
B. ₦300, 75 units
C. ₦400, 100 units
D. ₦500, 125 units
Question 5
A firm's total revenue is given by TR = 100Q - 2Q^2. The firm's total \cost is given by TC = 50Q + 10Q^2. Find the firm's profit-maximizing output.
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 6
A firm's production function is given by \( Q = 10L^0.5K^0.5 \), where (Q) is the output, (L) is the labor and (K) is the capital. If the firm's budget constraint is given by \( 10L + 20K = 100 \), what is the firm's optimal level of labor and capital?
A. \( L = 2, K = 2 \)
B. \( L = 4, K = 1 \)
C. \( L = 1, K = 4 \)
D. \( L = 3, K = 3 \)
Question 7
A firm's demand curve is given by Q = 100 - 2P. The firm's supply curve is given by Q = 2P. Find the equilibrium price and quantity.
A. ₦200, 50 units
B. ₦300, 75 units
C. ₦400, 100 units
D. ₦500, 125 units
Question 8
A consumer's utility function is given by U = 2x + 3y. The consumer's budget constraint is given by 2x + 3y = 30. Find the consumer's optimal bundle of x and y.
A. x = 5, y = 5
B. x = 10, y = 0
C. x = 0, y = 10
D. x = 5, y = 10
Question 9
A government imposes a tax of ₦10 per unit on a firm's output. If the firm's supply function is Q = 100 - 2P, where P is the price per unit, what is the new supply function after the tax is imposed?
A. Q = 100 - 2\( P + 10 \)
B. Q = 100 - 2P - 10
C. Q = 100 - 2\( P - 10 \)
D. Q = 100 - 2P + 10
Question 10
A country's GDP is given by GDP = 100 + 2Y + 3C. The country's GNP is given by GNP = 120 + 2Y - 3C. Find the country's GDP minus its GNP.
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 11
A firm's marginal revenue (MR) and marginal \cost (MC) curves are given by the equations MR = 100 - 2q and MC = 50 + q. If the firm is currently producing 10 units of output, what is the likely effect on the firm's profit-maximizing output level if the government imposes a tax of ₦10 per unit?
A. The firm will increase its output level.
B. The firm will decrease its output level.
C. The firm's output level will remain unchanged.
D. The firm will shut down.
Question 12
A firm's demand function is given by \( Q = 100 - 2P \), where ( P ) is the price. If the price is ₦20, what is the quantity demanded?
A. 40
B. 50
C. 60
D. 70
Question 13
The government of a country imposes a tax on imports to reduce the trade deficit. This tax is an example of a(n)
A. Tariff
B. Quota
C. Subsidy
D. Export Tax
Question 14
A firm's \cost function is given by C = 2Q + 3Q^2, where Q is the quantity produced. If the firm produces 10 units, what is the total \cost?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 15
A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production functions are given by X = 2L + 3K and Y = 3L + 2K. If the firm has 10 units of labor and 8 units of capital, what is the total output?
A. 40
B. 50
C. 60
D. 70

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