POST UTME BSU 2017 Economics | Objective

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Question 1
A country's GDP is 100 billion naira, and its GNP is 120 billion naira. What is the country's net factor income from abroad?
A. ( 20 ) billion naira
B. ( 30 ) billion naira
C. ( 40 ) billion naira
D. ( 50 ) billion naira
Question 2
A country's balance of payments (BOP) is given by the following equation: BOP = X - M, where X is the country's exports and M is its imports. If the country's exports are 100 billion naira and its imports are 80 billion naira, what is the country's balance of payments?
A. ( 20 ) billion naira
B. ( 30 ) billion naira
C. ( 40 ) billion naira
D. ( 50 ) billion naira
Question 3
The concept of diminishing marginal utility is related to the concept of
A. increa\sing returns
B. cons\tant returns
C. decrea\sing returns
D. diminishing returns
Question 4
A firm faces a demand curve given by Q = 100 - 2P. If the marginal \cost (MC) is 10, what is the profit-maximizing quantity (Q)?
A. \( Q = 20 \)
B. \( Q = 30 \)
C. \( Q = 40 \)
D. \( Q = 50 \)
Question 5
A firm is operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are wL = ₦100 and rK = ₦200, and it is currently producing 100 units of output, what is the firm's current marginal \cost?
A. ₦10
B. ₦20
C. ₦30
D. ₦40
Question 6
The law of diminishing marginal utility states that as the consumption of a good increases, the marginal utility derived from each additional unit of the good
A. increases
B. decreases
C. remains cons\tant
D. fluctuates
Question 7
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing price and quantity.
A. ₦50, 50 units
B. ₦75, 25 units
C. ₦100, 0 units
D. ₦200, 100 units
Question 8
Consider a firm that produces two goods, A and B. The production function for good A is given by Q_A = 2L + 3K, and the production function for good B is given by Q_B = 3L + 2K. If the firm has 10 units of labor (L) and 5 units of capital (K), what is the total output of good A?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 9
The concept of comparative advantage states that a country should specialize in producing the good or service for which it has a
A. absolute advantage
B. comparative advantage
C. opportunity \cost
D. marginal \cost
Question 10
The concept of scarcity in economics refers to the
A. inability to produce a good or service at a lower \cost
B. inability to produce a good or service at a higher quality
C. inability to meet the wants and needs of society with the available resources
D. inability to produce a good or service at a faster rate
Question 11
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market price is P = 10, and the marginal \cost (MC) of each firm is 5, what is the profit-maximizing quantity (Q) for each firm?
A. \( Q = \frac{P - MC}{P} \times n \)
B. \( Q = \frac{P}{MC} \times n \)
C. \( Q = \frac{MC}{P} \times n \)
D. \( Q = \frac{P + MC}{P} \times n \)
Question 12
A firm's revenue function is given by R(x) = 2x^2 + 5x. Find the marginal revenue function.
A. ( MR(x) = 4x + 5 )
B. ( MR(x) = 2x + 5 )
C. ( MR(x) = 4x - 5 )
D. ( MR(x) = 2x - 5 )
Question 13
A country's GDP is given by the equation Y = C + I + G. If C = 100, I = 200, and G = 300, find the GDP.
A. ₦600
B. ₦700
C. ₦800
D. ₦900
Question 14
The concept of comparative advantage is related to the concept of
A. absolute advantage
B. comparative advantage
C. opportunity \cost
D. marginal \cost
Question 15
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are wL = ₦100 and rK = ₦200, and it is currently producing 100 units of output, what is the firm's current total \cost of production?
A. ₦10,000
B. ₦12,000
C. ₦15,000
D. ₦20,000

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