POST UTME BOWEN UNIVERSITY 2024 Economics | Objective

Are you preparing for POST UTME BOWEN UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2024 Economics (Objective) questions designed to simulate the real exam environment.

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Question 1
Calculate the value of the elasticity of demand for a firm producing a homogeneous product, given that the price elasticity of demand is 0.8 and the firm's revenue is ₦1,500,000.
Correct A. ₦1,200,000
B. ₦1,800,000
C. ₦2,100,000
D. ₦2,400,000

Correct Answer: A

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Question 2
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.
Correct A. ₦4,500,000
B. ₦4,800,000
C. ₦5,000,000
D. ₦5,200,000

Correct Answer: A

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Question 3
A country's GDP is ₦10,000,000,000, and its GNP is ₦11,000,000,000. Calculate the net factor income from abroad.
Correct A. ₦1,000,000,000
B. ₦1,500,000,000
C. ₦2,000,000,000
D. ₦2,500,000,000

Correct Answer: A

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Question 4
A firm is producing a homogeneous product with a cons\tant elasticity of demand of 0.5. If the firm's revenue is ₦2,000,000, calculate the price elasticity of demand.
A. 0.2
Correct B. 0.5
C. 0.8
D. 1.0

Correct Answer: B

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Question 5
A country's GDP is ₦15,000,000,000, and its GNP is ₦16,000,000,000. Calculate the net factor income from abroad.
Correct A. ₦1,500,000,000
B. ₦2,000,000,000
C. ₦2,500,000,000
D. ₦3,000,000,000

Correct Answer: A

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Question 6
A firm's \cost function is given by C(q) = 2q^2 + 5q + 10. If the firm produces 5 units of output, what is the total \cost of production?
A. ₦75
Correct B. ₦85
C. ₦95
D. ₦105

Correct Answer: B

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Question 7
The demand function for a product is given by p = 100 - 2q. If the price elasticity of demand is -2, what is the quantity demanded?
A. 20
B. 30
Correct C. 40
D. 50

Correct Answer: C

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Question 8
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?
Correct A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 20, y = 2

Correct Answer: A

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Question 9
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
Correct B. ₦1600
C. ₦1700
D. ₦1800

Correct Answer: B

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Question 10
The supply function for a product is given by q = 50 + 2p. If the price is ₦20, what is the quantity supplied?
A. 60
B. 70
Correct C. 80
D. 90

Correct Answer: C

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Question 11
A firm's production function is given by Q = 2L^0.5H^0.5. If the firm's current labor and capital inputs are L = 16 and H = 9, respectively, what is the firm's current output level?
A. 12
B. 24
Correct C. 36
D. 48

Correct Answer: C

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Question 12
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?
Correct A. x = 40, y = 20
B. x = 30, y = 30
C. x = 20, y = 40
D. x = 10, y = 50

Correct Answer: A

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Question 13
A country's GDP is given by GDP = 100 + 0.5Y + 0.2C. If the country's current GDP is ₦5000 and the current values of Y and C are ₦2000 and ₦1000, respectively, what is the country's current value of Y?
A. ₦3000
Correct B. ₦3500
C. ₦4000
D. ₦4500

Correct Answer: B

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Question 14
A firm's supply function is given by Q = 2P - 10. If the firm's current price is ₦20, what is the firm's current output level?
A. 0
B. 10
Correct C. 20
D. 30

Correct Answer: C

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Question 15
A country's balance of payments is given by BOP = 100 + 0.5X - 0.2M. If the country's current BOP is ₦5000 and the current values of X and M are ₦2000 and ₦1000, respectively, what is the country's current value of X?
A. ₦3000
Correct B. ₦3500
C. ₦4000
D. ₦4500

Correct Answer: B

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Question 16
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is ₦20, what is the firm's current output level?
A. 80
B. 90
Correct C. 100
D. 110

Correct Answer: C

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Question 17
A country's GNP is given by GNP = 100 + 0.5Y + 0.2C. If the country's current GNP is ₦5000 and the current values of Y and C are ₦2000 and ₦1000, respectively, what is the country's current value of Y?
A. ₦3000
Correct B. ₦3500
C. ₦4000
D. ₦4500

Correct Answer: B

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Question 18
A firm's supply function is given by Q = 2P - 10. If the firm's current price is ₦20, what is the firm's current output level?
A. 0
B. 10
Correct C. 20
D. 30

Correct Answer: C

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Question 19
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. What is the profit-maximizing price and quantity?
Correct A. P = 40, Q = 30
B. P = 50, Q = 20
C. P = 60, Q = 10
D. P = 70, Q = 5

Correct Answer: A

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Question 20
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?
Correct A. L = 10, K = 5
B. L = 5, K = 10
C. L = 20, K = 2
D. L = 2, K = 20

Correct Answer: A

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Question 21
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?
Correct A. x = 10, y = 5
B. x = 5, y = 10
C. x = 20, y = 2
D. x = 2, y = 20

Correct Answer: A

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Question 22
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?
Correct A. L = 10, K = 5
B. L = 5, K = 10
C. L = 20, K = 2
D. L = 2, K = 20

Correct Answer: A

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Question 23
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?
Correct A. x = 10, y = 5
B. x = 5, y = 10
C. x = 20, y = 2
D. x = 2, y = 20

Correct Answer: A

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Question 24
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?
Correct A. L = 10, K = 5
B. L = 5, K = 10
C. L = 20, K = 2
D. L = 2, K = 20

Correct Answer: A

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Question 25
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?
Correct A. x = 10, y = 5
B. x = 5, y = 10
C. x = 20, y = 2
D. x = 2, y = 20

Correct Answer: A

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