POST UTME BSU 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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 quantity demanded?
A. 40
B. 50
C. 60
D. 70
Question 2
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the price is increased from ₦10 to ₦15, what is the new quantity demanded?
A. 50 units
B. 75 units
C. 100 units
D. 125 units
Question 3
A consumer's indifference curve is given by the equation u(x,y) = 2x + 3y. If the consumer's budget constraint is given by the equation 2x + 3y = 15, what is the consumer's optimal bundle?
A. (x,y) = (3,4)
B. (x,y) = (4,3)
C. (x,y) = (5,2)
D. (x,y) = (2,5)
Question 4
A firm is considering investing in a new project with a net present value (NPV) of ₦1,500,000. The \cost of capital is 10% per annum. Calculate the internal rate of return (IRR) of the project.
A. 12%
B. 15%
C. 18%
D. 20%
Question 5
A country's GDP at market price is ₦100 billion, and its GDP at factor \cost is ₦90 billion. What is the indirect tax rate?
A. 10%
B. 15%
C. 20%
D. 25%
Question 6
In a perfectly competitive market, the demand curve for a firm's product is its marginal revenue curve. What is the relationship between the firm's marginal \cost (MC) and its marginal revenue (MR)?
A. MC > MR
B. MC = MR
C. MC < MR
D. MC and MR are unrelated
Question 7
A firm is considering investing in a new project with a payback period of 5 years. The initial investment is ₦5,000,000. Calculate the annual cash inflow required to break even.
A. ₦1,000,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦2,000,000
Question 8
A firm's total revenue is given by the equation TR = 200Q - 2Q^2, where Q is the quantity sold. If the firm sells 20 units, what is its total revenue?
A. ₦2000
B. ₦4000
C. ₦6000
D. ₦8000
Question 9
The money multiplier is a concept used in the money creation process. It is defined as the ratio of the change in the money supply to the change in the reserve requirement. If the reserve requirement is increased from 10% to 15%, and the initial money supply is ₦100 billion, what is the new money supply if the commercial banks maintain a 20% excess reserve ratio?
A. ₦80 billion
B. ₦120 billion
C. ₦150 billion
D. ₦180 billion
Question 10
A country's GDP is ₦100 billion, its imports are ₦20 billion, and its exports are ₦15 billion. What is the country's GDP at market price?
A. ₦105 billion
B. ₦110 billion
C. ₦115 billion
D. ₦120 billion
Question 11
A consumer's utility function is given by U = 2x + 3y. If the consumer's 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 12
Consider a closed economy with a \single good and service. If the price level increases by 10% and the nominal GDP also increases by 10%, what can be concluded about the real GDP?
A. Real GDP has increased by 10%
B. Real GDP has decreased by 10%
C. Real GDP has remained cons\tant
D. Insufficient information to determine the effect on real GDP
Question 13
A consumer's demand for a good is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price is ₦50, what is the quantity demanded?
A. 20 units
B. 40 units
C. 60 units
D. 80 units
Question 14
The government of a country imposes a tax of ₦10 per unit on a good. The demand function for the good is given by \( Q_d\( p \ \) = 100 - 2p ) and the supply function is given by \( Q_s\( p \ \) = 2p - 50 ). Find the new equilibrium price and quantity.
A. p = 30, Q = 40
B. p = 35, Q = 45
C. p = 40, Q = 50
D. p = 45, Q = 55
Question 15
A country's GDP is given by GDP = 100 + 0.5Y. The country's GNP is given by GNP = 120 + 0.7Y. What is the country's GDP when Y = ₦100?
A. ₦150
B. ₦160
C. ₦170
D. ₦180

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