POST UTME BOWEN UNIVERSITY 2019 Economics | Objective

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Question 1
A country's economic growth is influenced by its human capital, natural resources, and techno\logical advancements. However, the country's economic growth is hindered by a lack of infrastructure, corruption, and a brain drain. U\sing the concept of opportunity \cost, explain why the country's economic growth is hindered by a brain drain.
A. The brain drain leads to a loss of skilled workers, resulting in a decrease in the country's productivity and economic growth.
B. The brain drain leads to an increase in the country's population, resulting in a decrease in the country's economic growth.
C. The brain drain leads to an increase in the country's foreign exchange earnings, resulting in an increase in the country's economic growth.
D. The brain drain leads to a decrease in the country's foreign exchange earnings, resulting in a decrease in the country's economic growth.
Question 2
A country's GDP is ₦1,000,000,000. If the country's net factor income from abroad is ₦200,000,000, what is the country's GNP?
A. ₦1,200,000,000
B. ₦1,100,000,000
C. ₦1,000,000,000
D. ₦900,000,000
Question 3
Suppose a country's trade balance is in surplus by ₦100,000,000. If the country's exports are ₦500,000,000 and its imports are ₦400,000,000, what is the country's balance of payments surplus?
A. ₦100,000,000
B. ₦200,000,000
C. ₦300,000,000
D. ₦400,000,000
Question 4
A country's government imposes a tax on imports of 15% of the pre-tax price. If the pre-tax price of the imported good is $100 per unit, and the demand curve for the good is given by Q = 100 - 2P, where Q is quantity demanded and P is price, what is the new equilibrium price and quantity?
A. Price = $90, Quantity = 50
B. Price = $92, Quantity = 45
C. Price = $95, Quantity = 40
D. Price = $98, Quantity = 35
Question 5
A consumer has a budget of ₦1,000 and faces the following price schedule: x1 = ₦100, x2 = ₦200, x3 = ₦300. U\sing the budget constraint equation, derive the consumer's indifference curve equation.
A. U(x1, x2) = 100x1 + 200x2
B. U(x1, x2) = 100x1 - 200x2
C. U(x1, x2) = 200x1 + 100x2
D. U(x1, x2) = 200x1 - 100x2
Question 6
Suppose a firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor, and K is capital. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the marginal product of labor (MPL) when the firm is producing at the given input levels?
A. 4
B. 6
C. 8
D. 10
Question 7
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 firm's current labor and capital inputs are L = 4 and H = 9, respectively, what is the marginal product of labor?
A. 1
B. 2
C. 3
D. 4
Question 8
A consumer's utility function is given by U = 2x + 3y. The budget constraint is 2x + 3y = ₦100. Find the consumer's optimal consumption bundle.
A. (20, 30)
B. (30, 20)
C. (40, 10)
D. (10, 40)
Question 9
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦200, and the firm's current output price is p = ₦500, calculate the firm's maximum profit.
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 10
A country is experiencing a recession due to a decrease in aggregate demand. U\sing the concept of macroeconomic variables, explain why the country is experiencing a recession.
A. The country is experiencing a recession because the value of aggregate demand is greater than the value of aggregate supply.
B. The country is experiencing a recession because the value of aggregate demand is less than the value of aggregate supply.
C. The country is experiencing a recession because the value of aggregate demand is equal to the value of aggregate supply.
D. The country is experiencing a recession because the value of aggregate demand is not equal to the value of aggregate supply.
Question 11
A firm's \cost function is given by C = 100 + 2L + 3H, where C is total \cost, L is labor, and H is capital. If the firm's current labor and capital inputs are L = 5 and H = 6, respectively, what is the total \cost?
A. ₦250
B. ₦300
C. ₦350
D. ₦400
Question 12
A firm is considering two production techno\logies: one that produces 100 units of output per hour and another that produces 200 units of output per hour. The \cost of the first techno\logy is ₦500 per hour, and the \cost of the second techno\logy is ₦750 per hour. Find the firm's optimal production techno\logy.
A. Techno\logy 1
B. Techno\logy 2
C. Both techno\logies
D. Neither techno\logy
Question 13
A consumer has a utility function given by U = 2X + 3Y, where X and Y are the quantities of two goods consumed. If the prices of the goods are $2 and $3 respectively, and the consumer has a budget of $10, what is the optimal bundle of goods?
A. X = 2, Y = 2
B. X = 3, Y = 1
C. X = 4, Y = 0
D. X = 0, Y = 3
Question 14
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
Question 15
A market is in equilibrium when the quantity supplied equals the quantity demanded. If the supply function is given by Qs = 2P + 5 and the demand function is given by Qd = 100 - 2P, what is the equilibrium price?
A. 15
B. 20
C. 25
D. 30

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