POST UTME BOWEN UNIVERSITY 2021 Economics | Objective

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Question 1
A consumer has a utility function given by U(x,y) = x^2 + 2y^2. If the consumer's budget constraint is 2x + 3y = 30, and the prices of x and y are 5 and 10 respectively, what is the consumer's optimal bundle?
A. (3, 5)
B. (5, 3)
C. (6, 4)
D. (4, 6)
Question 2
A country's GDP is given by the equation Y = C + I + G, where Y is the GDP, C is the consumption, I is the investment, and G is the government sp\ending. If the consumption is ₦100 billion, the investment is ₦20 billion, and the government sp\ending is ₦30 billion, what is the GDP?
A. ₦150 billion
B. ₦160 billion
C. ₦170 billion
D. ₦180 billion
Question 3
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function of C(Q) = 10Q + 100. If the monopolist produces 40 units, what is the consumer surplus?
A. ₦1000
B. ₦1200
C. ₦1500
D. ₦1800
Question 4
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP is $100 billion, consumption is $50 billion, investment is $20 billion, government sp\ending is $15 billion, exports are $30 billion, and imports are $25 billion, find the value of X.
A. $35 billion
B. $40 billion
C. $45 billion
D. $50 billion
Question 5
A firm's total revenue is given by the equation TR = 100x - 2x^2, where x is the number of units sold. What is the price elasticity of demand when the quantity demanded is 20 units?
A. 0.5
B. 1
C. 2
D. -1
Question 6
A government imposes a tax on a firm's output. If the firm's supply curve shifts to the left, which of the following is a possible effect on the firm's output?
A. The firm's output increases.
B. The firm's output decreases.
C. The firm's output remains unchanged.
D. The firm's output increases at a faster rate.
Question 7
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input prices are w = 20 and r = 30, and the current output price is p = 50, calculate the firm's maximum profit.
A. ₦1000
B. ₦1200
C. ₦1400
D. ₦1600
Question 8
A firm is producing a good with a production function of Q = 2L^2, where L is the labor input. If the wage rate is ₦50 per unit of labor, what is the marginal product of labor?
A. 10
B. 20
C. 30
D. 40
Question 9
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 uses 100 units of labor and 100 units of capital, what is the output?
A. 100 units
B. 200 units
C. 300 units
D. 400 units
Question 10
A government imposes a tax on a firm's output. If the firm's supply curve shifts to the left, which of the following is a possible effect on the firm's revenue?
A. The firm's revenue increases.
B. The firm's revenue decreases.
C. The firm's revenue remains unchanged.
D. The firm's revenue increases at a faster rate.
Question 11
A firm is facing a demand curve given by Q = 100 - 2P and a \cost function of C(Q) = 10Q + 100. If the firm produces 40 units, what is the profit?
A. ₦1000
B. ₦1200
C. ₦1500
D. ₦1800
Question 12
A firm's production function is given by Q = 3L^0.5K^0.5. If the firm's current input prices are w = 15 and r = 25, and the current output price is p = 40, calculate the firm's maximum profit.
A. ₦900
B. ₦1100
C. ₦1300
D. ₦1500
Question 13
A firm has a production function given by Q = 2L^0.5K^0.5. If the firm's current input prices are w_L = 10 and w_K = 20, and the firm's current output price is p = 50, what is the firm's maximum profit?
A. ₦1000
B. ₦1200
C. ₦1500
D. ₦1800
Question 14
A consumer's utility function is given by U(x,y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, find the consumer's optimal bundle of x and y.
A. (200, 100)
B. (300, 50)
C. (400, 0)
D. (0, 100)
Question 15
A consumer has an indifference curve given by U = 2X + 3Y, where X and Y are the quantities of two goods. If the consumer is at a point (2, 3) on the indifference curve, what is the marginal rate of substitution?
A. 2
B. 3
C. 4
D. 5

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