POST UTME BSU 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's GDP is given by GDP = C + I + G + \( X - M \). If the country's consumption is ₦500 billion, investment is ₦200 billion, government sp\ending is ₦300 billion, exports are ₦400 billion, and imports are ₦200 billion, find the country's GDP.
A. ₦1.5 trillion
B. ₦1.6 trillion
C. ₦1.7 trillion
D. ₦1.8 trillion
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's techno\logy is such that L = 4K, find the value of K that maximizes output.
A. K = 16
B. K = 32
C. K = 64
D. K = 128
Question 3
The concept of scarcity in economics implies that the wants and needs of individuals are unlimited, but the resources available to satisfy these wants and needs are limited. Which of the following best describes the opportunity \cost of a choice?
A. The value of the next best alternative that is given up when a choice is made.
B. The \cost of producing a good or service.
C. The benefit of a choice.
D. The profit made from a choice.
Question 4
A country's GNP is ₦12 trillion. The government sp\ends ₦3 trillion on goods and services. The private sector sp\ends ₦4 trillion on goods and services. The foreign sector sp\ends ₦2 trillion on goods and services. What is the country's GNP at market price?
A. ₦15 trillion
B. ₦16 trillion
C. ₦17 trillion
D. ₦18 trillion
Question 5
A firm's supply function is given by ( Q(s) = 2s + 5 ), where ( s ) is the price of the good. If the firm's marginal \cost is ( MC(s) = 2s ), find the value of ( s ) at which the firm's supply is maximized.
A. 5
B. 10
C. 15
D. 20
Question 6
A consumer's indifference curve is downward sloping. What is the implication of this for the consumer's utility function?
A. The consumer's utility function is concave.
B. The consumer's utility function is convex.
C. The consumer's utility function is linear.
D. The consumer's utility function is quadratic.
Question 7
A firm's demand curve is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply curve is given by Qs = 2P - 50. Find the elasticity of demand at the equilibrium price.
A. 0.5
B. 1
C. 2
D. 3
Question 8
A monopolist faces a demand curve given by Qd = 100 - 2P and a marginal revenue curve given by MR = 20 - 2Q. Find the price and quantity at which the monopolist maximizes profit.
A. ₦50, 100 units
B. ₦75, 75 units
C. ₦25, 150 units
D. ₦100, 50 units
Question 9
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor and K is capital. If the firm has 100 units of labor and 200 units of capital, what is the marginal product of labor?
A. 5
B. 10
C. 15
D. 20
Question 10
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm wants to maximize its revenue, what is the optimal price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 11
A government wants to reduce the poverty rate in a country. Which of the following policies is most likely to achieve this goal?
A. Increa\sing the minimum wage
B. Providing subsidies to farmers
C. Investing in education and healthcare
D. Reducing taxes on the rich
Question 12
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, find the optimal bundle of x and y.
A. x = 80, y = 60
B. x = 70, y = 70
C. x = 60, y = 80
D. x = 50, y = 90
Question 13
A firm's demand curve is downward sloping. What is the implication of this for the firm's marginal revenue curve?
A. The marginal revenue curve is upward sloping.
B. The marginal revenue curve is downward sloping.
C. The marginal revenue curve is horizontal.
D. The marginal revenue curve is vertical.
Question 14
A country's balance of payments is given by the following equation: BOP = X - M, where X is exports and M is imports. If the country's exports are ₦500 billion and its imports are ₦600 billion, what is the balance of payments?
A. ₦-100 billion
B. ₦100 billion
C. ₦500 billion
D. ₦600 billion
Question 15
The government of Nigeria has implemented a policy to increase the production of rice in the country. The policy includes providing subsidies to farmers, investing in irrigation infrastructure, and promoting the use of high-yielding rice varieties. However, the policy has been criticized for its potential impact on the environment and the displacement of small-scale farmers. What is the likely effect of this policy on the supply of rice in Nigeria?
A. The supply of rice will increase due to the increased production and investment in irrigation infrastructure.
B. The supply of rice will decrease due to the displacement of small-scale farmers and the potential environmental impact.
C. The supply of rice will remain the same due to the offsetting effects of the policy.
D. The supply of rice will increase due to the increased demand and the potential for economies of scale.

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