POST UTME BOWEN UNIVERSITY 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's indifference curve is represented by the equation ( u(x,y) = x^2 + 2y^2 ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle of x and y?
A. x = 40, y = 20
B. x = 30, y = 30
C. x = 20, y = 40
D. x = 10, y = 50
Question 2
A country's balance of payments account is given by the equation BOP = X - M, where BOP is the balance of payments, X is the value of exports, and M is the value of imports. If the value of exports is $100 and the value of imports is $80, what is the balance of payments?
A. $10
B. $20
C. $30
D. $40
Question 3
A firm is operating in a perfectly competitive market. The demand for its product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The firm's supply curve is given by the equation Qs = 2P - 10, where Qs is the quantity supplied. What is the equilibrium price and quantity in this market?
A. P = 20, Q = 30
B. P = 30, Q = 20
C. P = 40, Q = 10
D. P = 50, Q = 5
Question 4
A country's GDP is given by the equation GDP = C + I + G + \( X - M \). If the country's consumption is ₦500 billion, investment is ₦200 billion, government sp\ending is ₦300 billion, exports are ₦400 billion, and imports are ₦200 billion, what is the country's GDP?
A. 1,500,000,000,000
B. 1,600,000,000,000
C. 1,700,000,000,000
D. 1,800,000,000,000
Question 5
A country's money supply is ₦100 billion, its velocity of money is 2, and its price level is ₦10. What is the country's nominal GDP?
A. ₦200 billion
B. ₦300 billion
C. ₦400 billion
D. ₦500 billion
Question 6
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's supply function is given by Q = 50 + 3P, find the equilibrium price and quantity.
A. P = ₦20, Q = 60
B. P = ₦30, Q = 70
C. P = ₦40, Q = 80
D. P = ₦50, Q = 90
Question 7
A consumer's utility function is given by U(x,y) = 2x + 3y. If the consumer has a budget of ₦100 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle?
A. (10,20)
B. (15,15)
C. (20,10)
D. (25,5)
Question 8
A country's economic growth is often measured by its GDP per capita. However, this measure has its limitations. What is one major limitation of u\sing GDP per capita as a measure of economic growth?
A. It does not account for income inequality.
B. It does not account for the quality of goods and services produced.
C. It does not account for the environmental impact of economic activity.
D. It does not account for the level of poverty in the country.
Question 9
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor and H is capital. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm's budget constraint is 100L + 200H = 10000, find the optimal level of labor and capital that maximizes output.
A. L = 100, H = 50
B. L = 50, H = 100
C. L = 200, H = 50
D. L = 50, H = 200
Question 10
A consumer's indifference curve is represented by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle of x and y?
A. x = 40, y = 20
B. x = 30, y = 30
C. x = 20, y = 40
D. x = 10, y = 50
Question 11
A country's GDP is ₦1.2 trillion. Its imports are ₦400 billion and its exports are ₦300 billion. What is its balance of trade?
A. ₦100 billion surplus
B. ₦100 billion deficit
C. ₦200 billion surplus
D. ₦200 billion deficit
Question 12
A firm faces a market demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing quantity and price.
A. 50 units, ₦150
B. 75 units, ₦120
C. 100 units, ₦100
D. 125 units, ₦80
Question 13
A firm is producing a good with a cons\tant elasticity of demand of 2. If the price of the good is ₦100, what is the price elasticity of supply?
A. 0.5
B. 1
C. 2
D. 4
Question 14
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm produces 10 units of output, what is its total \cost?
A. 150
B. 200
C. 250
D. 300
Question 15
The government of Nigeria has introduced a new policy to encourage the growth of the agricultural sector. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing access to credit. However, the policy also includes a provision that requires farmers to sell a certain percentage of their produce to the government at a fixed price. This provision is int\ended to stabilize food prices and ensure a steady supply of food to the market. However, it may also lead to a decrease in the incentives for farmers to produce more, as they will be forced to sell a portion of their produce at a price that may be lower than the market price. What is the likely effect of this policy on the agricultural sector?
A. The policy will lead to an increase in food production and a decrease in food prices.
B. The policy will lead to a decrease in food production and an increase in food prices.
C. The policy will have no effect on food production and prices.
D. The policy will lead to an increase in food production and an increase in food prices.

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