POST UTME BOWEN UNIVERSITY 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Consider a firm operating in a perfectly competitive market with a given supply curve. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will be the effect on the firm's output and profit?
A. The firm will increase output and profit.
B. The firm will decrease output and profit.
C. The firm's output will remain the same, but profit will increase.
D. The firm's output will remain the same, but profit will decrease.
Question 2
A diagram showing the production possibilities frontier (PPF) for two countries is provided below. If Country A experiences a techno\logical improvement, what will happen to its PPF?
A. Shift outward
B. Shift inward
C. Remain the same
D. Be unaffected
Question 3
Suppose a country's GDP is $100 billion and its imports are $20 billion. If the country's trade balance is initially in surplus, what is the value of its exports?
A. $80 billion
B. $90 billion
C. $100 billion
D. $120 billion
Question 4
A country's agricultural sector is experiencing a surplus, while its industrial sector is experiencing a shortage. What will be the effect on the country's overall economic activity?
A. Overall economic activity will increase.
B. Overall economic activity will decrease.
C. Overall economic activity will remain the same.
D. Overall economic activity will fluctuate.
Question 5
A firm is facing a market structure where the demand curve is given by Qd = 100 - 2P, and the supply curve is given by Qs = 2P. What is the equilibrium price and quantity?
A. P = 20, Q = 60
B. P = 25, Q = 50
C. P = 30, Q = 40
D. P = 35, Q = 30
Question 6
A firm is facing a market structure where the demand curve is given by Qd = 100 - 2P, and the supply curve is given by Qs = 2P. What is the equilibrium price and quantity?
A. P = 20, Q = 60
B. P = 25, Q = 50
C. P = 30, Q = 40
D. P = 35, Q = 30
Question 7
A consumer has a budget of ₦1,000 and a preference for two goods, A and B. The prices of the goods are ₦200 and ₦300 respectively. If the consumer sp\ends all their budget, what is the quantity of good A consumed?
A. 2
B. 3
C. 4
D. 5
Question 8
Suppose a country's import demand function is given by \( Q^d = 100 - 2P \) and the export supply function is given by \( Q^s = 50 + P \), where ( P ) is the price in dollars. If the country's trade balance is initially in surplus, what is the price level at which the trade balance will be zero?
A. $25
B. $50
C. $75
D. $100
Question 9
The concept of scarcity in economics implies that the production of one good is limited by the availability of resources, which can be used to produce other goods. This is an example of a trade-off between:
A. Present consumption and future consumption
B. Present consumption and leisure
C. Future consumption and leisure
D. Present consumption and investment
Question 10
A firm's demand for labor is said to be elastic if a small change in the wage rate leads to a large change in the quantity of labor demanded. Which of the following is a characteristic of an elastic demand for labor?
A. A small change in the wage rate leads to a small change in the quantity of labor demanded
B. A small change in the wage rate leads to a large change in the quantity of labor demanded
C. A large change in the wage rate leads to a small change in the quantity of labor demanded
D. A large change in the wage rate leads to a large change in the quantity of labor demanded
Question 11
A country's GDP is 100 billion naira, its imports are 20 billion naira, and its exports are 30 billion naira. What is the country's balance of trade?
A. 10 billion naira surplus
B. 10 billion naira deficit
C. 20 billion naira surplus
D. 20 billion naira deficit
Question 12
A country's GDP is ₦1,500,000 and its GNP is ₦1,600,000. What is the net factor income from abroad?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 13
A monopolistically competitive firm faces a demand curve with a cons\tant elasticity of -2. If the firm's marginal revenue (MR) is 120, and its marginal \cost (MC) is 80, what is the optimal quantity of output?
A. 100 units
B. 120 units
C. 150 units
D. 180 units
Question 14
A country's GDP is ₦10 trillion, and its GNP is ₦12 trillion. What is the net factor income from abroad?
A. ₦2 trillion
B. ₦1 trillion
C. ₦0.5 trillion
D. ₦0.1 trillion
Question 15
A firm's \cost function is given by C(x) = 2x^2 + 10x + 5. If the firm produces 10 units of output, what is its total \cost?
A. ₦1250
B. ₦1500
C. ₦1750
D. ₦2000

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