POST UTME BSU 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The opportunity \cost of producing one more unit of a good is measured by the
A. marginal \cost
B. marginal revenue
C. marginal benefit
D. marginal utility
Question 2
A country's balance of payments is in equilibrium when its
A. current account is in surplus
B. capital account is in surplus
C. trade balance is in equilibrium
D. exchange rate is stable
Question 3
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 = 4 and H = 9, what is the firm's total product?
A. 12
B. 18
C. 24
D. 30
Question 4
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm's current labor and capital inputs are 4 and 9 units respectively, what is the marginal product of labor (MPL) when H = 9?
A. 1.5
B. 2
C. 3
D. 4
Question 5
The elasticity of demand for a good is measured by the percentage change in the quantity demanded in response to a 1% change in the price of the good. If the price elasticity of demand is greater than 1, the demand curve is
A. inelastic
B. elastic
C. unit elastic
D. perfectly inelastic
Question 6
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are 4 and 9 respectively, what is the total product of labor?
A. 8
B. 16
C. 32
D. 64
Question 7
A firm's demand curve for a product is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's supply curve is given by Q = 2P - 50, find the equilibrium price and quantity.
A. P = 25, Q = 75
B. P = 50, Q = 100
C. P = 75, Q = 125
D. P = 100, Q = 150
Question 8
A country's balance of payments is in equilibrium when its
A. current account is in surplus
B. capital account is in surplus
C. trade balance is in equilibrium
D. exchange rate is stable
Question 9
A firm's demand curve for a product is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's supply curve is given by Q = 2P - 50, find the elasticity of demand at a price of $20.
A. 0.5
B. 1
C. 2
D. 5
Question 10
The production function for a firm is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor and K is the capital. If the firm increases its labor from 100 to 121 and capital from 100 to 121, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 11
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's budget is ₦100 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 3, y = 15
Question 12
A monopolist faces a demand curve given by P = 100 - 2Q. The firm's marginal \cost is MC = 20. What is the monopolist's profit-maximizing output?
A. 20
B. 30
C. 40
D. 50
Question 13
A firm's production function is given by Q = 100L^0.5K^0.5. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦200 per unit, calculate the opportunity \cost of one additional unit of output.
A. ₦50
B. ₦100
C. ₦200
D. ₦500
Question 14
A country's GNP at market price is ₦120 billion. The government imposes a 15% tax on all foreign earnings. What is the GNP at factor \cost?
A. ₦103.2 billion
B. ₦105 billion
C. ₦107.5 billion
D. ₦110 billion
Question 15
A firm is considering two production methods: Method A, which requires an initial investment of ₦10 million and generates a profit of ₦5 million per year, and Method B, which requires an initial investment of ₦20 million and generates a profit of ₦10 million per year. Assuming that the firm wants to maximize its profits, which method should it choose?
A. Method A
B. Method B
C. Both methods are equally profitable
D. Neither method is profitable

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