POST UTME BOWEN UNIVERSITY 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's revenue function is given by R(q) = 100q - 2q^2. If the firm produces 20 units of output, what is the total revenue?
A. ₦1500
B. ₦1600
C. ₦1700
D. ₦1800
Question 2
A consumer has an indifference curve given by U(x, y) = 2x^0.5y^0.5. If the price of x is ₦50 and the price of y is ₦100, what is the optimal bundle of x and y?
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 20, y = 2
D. x = 2, y = 20
Question 3
A country's GDP is $100 billion, its imports are $20 billion, and its exports are $25 billion. What is its net foreign income?
A. $5 billion
B. $10 billion
C. $15 billion
D. $20 billion
Question 4
Suppose a firm is operating in a perfectly competitive market with a given supply curve. If the demand for the firm's product increases, what will happen to the firm's equilibrium price and quantity?
A. The equilibrium price will increase, and the equilibrium quantity will decrease.
B. The equilibrium price will decrease, and the equilibrium quantity will increase.
C. The equilibrium price will remain the same, and the equilibrium quantity will increase.
D. The equilibrium price will increase, and the equilibrium quantity will increase.
Question 5
A government imposes a tax on a good, cau\sing the supply curve to shift to the left. What is the effect on the equilibrium price and quantity?
A. The equilibrium price increases, and the equilibrium quantity decreases.
B. The equilibrium price decreases, and the equilibrium quantity increases.
C. The equilibrium price remains the same, and the equilibrium quantity decreases.
D. The equilibrium price increases, and the equilibrium quantity remains the same.
Question 6
A firm has a production function F(L, K) = 2L^0.5K^0.5. If the price of labor is ₦100 and the price of capital is ₦200, what is the optimal level of labor and capital?
A. L = 10, K = 5
B. L = 5, K = 10
C. L = 20, K = 2
D. L = 2, K = 20
Question 7
A consumer has an indifference curve given by U(x, y) = 2x^0.5y^0.5. If the price of x is ₦50 and the price of y is ₦100, what is the optimal bundle of x and y?
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 20, y = 2
D. x = 2, y = 20
Question 8
A country's GDP is ₦15,000,000,000, and its GNP is ₦16,000,000,000. Calculate the net factor income from abroad.
A. ₦1,500,000,000
B. ₦2,000,000,000
C. ₦2,500,000,000
D. ₦3,000,000,000
Question 9
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's income is ₦100 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 20, y = 2
Question 10
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 labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 10%
B. 12%
C. 15%
D. 18%
Question 11
A firm is considering investing in a new project with an initial investment of ₦5,000,000 and expected annual profits of ₦1,200,000. If the firm's \cost of capital is 10%, calculate the net present value (NPV) of the project.
A. ₦4,500,000
B. ₦4,800,000
C. ₦5,000,000
D. ₦5,200,000
Question 12
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost curve is MC = 10. What is the monopolist's profit-maximizing price and quantity?
A. P = 40, Q = 30
B. P = 50, Q = 25
C. P = 60, Q = 20
D. P = 70, Q = 15
Question 13
A consumer's utility function is given by U = 2x + 3y. If the consumer's current income is ₦1000 and the prices of x and y are ₦5 and ₦10, 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 14
A firm is producing at a point on its production function where the marginal product of labor is 10 units per hour. If the firm increases its labor input by 1 hour, what is the change in total product?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 15
A firm's total revenue is given by TR = 100x - 2x^2, and its total \cost is given by TC = 50x + 10x^2. What is the firm's profit-maximizing output?
A. 10 units
B. 20 units
C. 30 units
D. 40 units

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