POST UTME BOWEN UNIVERSITY 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A central bank uses monetary policy to reduce inflation. If the central bank increases the reserve requirement for commercial banks, what will happen to the money supply?
A. The money supply will increase.
B. The money supply will decrease.
C. The money supply will remain the same.
D. The money supply will fluctuate.
Question 2
A firm's revenue function is given by R(x) = 2x^2 + 5x + 1, where x is the number of units produced. If the firm produces 5 units, what is the total revenue?
A. ₦125
B. ₦150
C. ₦175
D. ₦200
Question 3
A firm's \cost function is given by C(Q) = 100 + 2Q^2. The firm's revenue function is given by R(Q) = 100Q. What is the firm's profit-maximizing quantity?
A. Q = 10
B. Q = 20
C. Q = 30
D. Q = 40
Question 4
A country's government is considering a tax on a particular good. If the tax is $2 per unit and the demand for the good is given by Q = 100 - 2P, what is the new equilibrium price?
A. $48
B. $50
C. $52
D. $54
Question 5
A country's balance of payments is in equilibrium when the value of its imports equals the value of its exports. However, if the country experiences a trade deficit, it must rely on foreign capital inflows to finance its imports. U\sing the Marshall-Lerner condition, derive an expression for the percentage change in the exchange rate that would be required to eliminate the trade deficit.
A. E = \frac{M_X + M_M}{E_X + E_M}
B. \frac{dS}{dE} = \frac{M_X - M_M}{E_X - E_M}
C. \frac{dS}{dE} = \frac{M_X + M_M}{E_X - E_M}
D. \frac{dS}{dE} = \frac{M_X - M_M}{E_X + E_M}
Question 6
A firm is producing a good with a fixed \cost of ₦100,000 and a variable \cost of ₦50 per unit. If the firm sells 1,000 units of the good, what will be its total revenue?
A. ₦500,000
B. ₦550,000
C. ₦600,000
D. ₦650,000
Question 7
A consumer's utility function is given by U(x, y) = 2x^0.5y^0.5. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. x = 10, y = 100
B. x = 20, y = 50
C. x = 50, y = 20
D. x = 100, y = 10
Question 8
A consumer has a budget constraint of ₦1000 and a utility function U(x, y) = 2x + 3y. If the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal consumption bundle?
A. x = 80, y = 100
B. x = 100, y = 80
C. x = 120, y = 60
D. x = 60, y = 120
Question 9
A farmer in Nigeria decides to cultivate a new crop. If the crop is more labor-intensive than the previous crop, what will happen to the opportunity \cost of labor?
A. The opportunity \cost of labor will increase.
B. The opportunity \cost of labor will decrease.
C. The opportunity \cost of labor will remain the same.
D. The opportunity \cost of labor will fluctuate.
Question 10
Consider a production possibility frontier (PPF) with two goods, X and Y. If the PPF shifts outward due to an increase in the availability of resources, what is the opportunity \cost of producing more of good X?
A. The opportunity \cost of producing more of good X is the amount of good Y that must be sacrificed.
B. The opportunity \cost of producing more of good X is the amount of good X that must be sacrificed.
C. The opportunity \cost of producing more of good X is the amount of good Y that must be produced.
D. The opportunity \cost of producing more of good X is the amount of good X that must be produced.
Question 11
A firm is considering a new investment project with a net present value (NPV) of ₦500 million. If the firm's \cost of capital is 10%, what is the internal rate of return (IRR) of the project?
A. 10%
B. 12%
C. 15%
D. 18%
Question 12
A government imposes a tax on a good to reduce its consumption. If the tax is not passed on to the consumer, what will happen to the price of the good?
A. The price of the good will increase.
B. The price of the good will decrease.
C. The price of the good will remain the same.
D. The price of the good will fluctuate.
Question 13
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the number of labor units, and K is the number of capital units. If the firm uses 4 labor units and 9 capital units, what is the quantity produced?
A. 8
B. 10
C. 12
D. 15
Question 14
A government imposes a tax on a good, cau\sing the supply curve to shift to the left. U\sing the concept of consumer and producer surplus, derive an expression for the deadweight loss caused by the tax.
A. \Delta CS = \frac{1}{2} \times \( P - MC \) \times Q
B. \Delta CS = \frac{1}{2} \times \( P - MC \) \times \( Q - T \)
C. \Delta CS = \frac{1}{2} \times \( P - MC \) \times \( Q + T \)
D. \Delta CS = \frac{1}{2} \times \( P - MC \) \times \( Q - T \)
Question 15
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 2x + 3y = 12, what is the consumer's optimal bundle?
A. (2, 4)
B. (4, 2)
C. (6, 0)
D. (0, 6)

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