POST UTME BOWEN UNIVERSITY 2020 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
The supply of a good is given by the equation Qs = 50 + 2P, where Qs is the quantity supplied and P is the price. If the price is increased by 10%, what is the new quantity supplied?
Question 2
A central bank is considering a monetary policy to reduce inflation. If the current inflation rate is 8% and the bank wants to reduce it to 4% within the next 2 years, what is the required annual rate of decrease in the money supply?
Question 3
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the prices of the two goods are $2 and $3 respectively, and the consumer has a budget of $10, what is the optimal bundle of goods?
Question 4
A firm is considering two investment projects. Project A has a net present value (NPV) of ₦100,000 and a s\tandard deviation of ₦50,000. Project B has an NPV of ₦150,000 and a s\tandard deviation of ₦75,000. Which project should the firm choose?
Question 5
A country is experiencing a trade deficit of ₦100,000,000. If the current exchange rate is 1 USD = ₦500, and the country wants to reduce the trade deficit by 20% within the next year, what is the required increase in exports in terms of USD?
Question 6
A country's balance of payments is given by the following equation: BOP = X - M, where X is exports and M is imports. If the country's exports increase by 10% and imports decrease by 5%, what is the percentage change in the balance of payments?
Question 7
The production function for a firm is given by Q = 100K^\( 1/2 \)L^\( 1/2 \), where Q is output, K is capital and L is labor. If the firm increases its capital from 100 to 400, and labor from 100 to 400, what is the percentage change in output?
Question 8
Consider a firm operating in a monopoly market. If the firm's production function is given by Q = 2K^\( 1/2 \) L^\( 1/2 \), where Q is output, K is capital, and L is labor, and the firm's \cost function is C = 2wK^\( 1/2 \) + 2vL^\( 1/2 \), what is the firm's long-run supply curve?
Question 9
Consider a firm operating under cons\tant returns to scale. If the firm's production function is given by Q = 2K^\( 1/2 \) L^\( 1/2 \), where Q is output, K is capital, and L is labor, what is the long-run \cost function?
Question 10
A country's money supply is given by the equation: M = kPY, where M is the money supply, k is the velocity of money, P is the price level, and Y is real GDP. If the velocity of money increases by 10% and the price level increases by 5%, what is the percentage change in the money supply?
Question 11
A country's GDP is calculated as the sum of all final goods and services produced within its borders. However, if a multinational corporation operating in the country imports raw materials worth ₦100 billion, how would this affect the country's GDP?
Question 12
A consumer's indifference curve is steeper than another consumer's indifference curve. What can be concluded about the two consumers?
Question 13
A firm's \cost function is given by the equation C(x) = 2x^2 + 5x - 3, where x is the number of units produced. If the firm produces 5 units, what is its total \cost?
Question 14
A firm's revenue is given by the equation R = 2x^2 + 5x - 3, where x is the number of units sold. If the firm sells 5 units, what is its revenue?
Question 15
A consumer's indifference curve is steeper than another consumer's indifference curve if the consumer has a higher marginal rate of substitution.
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