POST UTME BSU 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's GDP is given by the equation GDP = C + I + G + \( X - M \). If the country's consumption is ₦100, investment is ₦50, government sp\ending is ₦20, exports are ₦30, and imports are ₦10, what is the country's GDP?
A. ₦200
B. ₦250
C. ₦300
D. ₦350
Question 2
A consumer's budget constraint is given by 2X + 3Y = 12. If the price of X is ₦2 and the price of Y is ₦3, find the optimal combination of X and Y.
A. X = 2, Y = 2
B. X = 4, Y = 0
C. X = 0, Y = 4
D. X = 2, Y = 4
Question 3
A consumer's budget constraint is given by the equation 2x + 3y = 12. If the consumer sp\ends ₦4 on x, how much will they sp\end on y?
A. ₦2
B. ₦4
C. ₦6
D. ₦8
Question 4
A country's balance of payments is given by the equation BOP = X - M, where X is the value of exports and M is the value of imports. If the value of exports is 100 billion naira and the value of imports is 80 billion naira, what is the balance of payments?
A. 10 billion naira
B. 20 billion naira
C. 30 billion naira
D. 40 billion naira
Question 5
A firm's revenue function is given by R(Q) = 2Q^2 - 10Q + 20. Find the profit-maximizing quantity.
A. Q = 5
B. Q = 10
C. Q = 15
D. Q = 20
Question 6
A country's balance of payments is in equilibrium when the value of its imports equals the value of its exports. However, if the country's imports exceed its exports, it will experience a trade deficit. What is the effect of a trade deficit on the country's exchange rate?
A. The exchange rate will appreciate.
B. The exchange rate will depreciate.
C. The exchange rate will remain unchanged.
D. The exchange rate will fluctuate.
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. P = 50, Q = 25
B. P = 75, Q = 25
C. P = 50, Q = 50
D. P = 75, Q = 50
Question 8
Consider a country that imports 100 units of a commodity and exports 80 units. The price of the commodity in the domestic market is ₦100 per unit, while the price in the foreign market is ₦80 per unit. U\sing the Balance of Payments framework, calculate the trade balance.
A. ₦20,000
B. ₦10,000
C. ₦30,000
D. ₦40,000
Question 9
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP is ₦1000 billion, its consumption is ₦300 billion, its investment is ₦200 billion, its government sp\ending is ₦150 billion, its exports are ₦250 billion, and its imports are ₦100 billion, what is the country's trade balance?
A. ₦50 billion
B. ₦100 billion
C. ₦150 billion
D. ₦200 billion
Question 10
A consumer's indifference curve is given by U = 2X + 3Y. If the price of X is ₦2 and the price of Y is ₦3, find the optimal combination of X and Y.
A. X = 2, Y = 2
B. X = 4, Y = 0
C. X = 0, Y = 4
D. X = 2, Y = 4
Question 11
A country's balance of payments (BOP) accounts are given by the following equations: Exports (X) = 100 + 0.5Y, Imports (M) = 50 + 0.2Y, where Y is the country's GDP. If the country's GDP is 1000, what is the country's trade balance?
A. ₦50
B. ₦100
C. ₦150
D. ₦200
Question 12
A consumer's indifference curve is downward sloping and convex to the origin. What is the implication of this shape for the consumer's marginal rate of substitution (MRS)?
A. The MRS is cons\tant
B. The MRS is increa\sing
C. The MRS is decrea\sing
D. The MRS is zero
Question 13
A monopoly firm's demand curve is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal \cost is 10, what is the firm's optimal price?
A. ₦40
B. ₦50
C. ₦60
D. ₦70
Question 14
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is labor, and K is capital. If the firm's labor is 100 units and its capital is 400 units, what is the firm's output?
A. 20
B. 30
C. 40
D. 50
Question 15
A government imposes a tax on a good, cau\sing the supply curve to shift to the left. What is the effect on the equilibrium price and quantity of the good?
A. The equilibrium price increases and quantity decreases
B. The equilibrium price decreases and quantity increases
C. The equilibrium price remains the same and quantity decreases
D. The equilibrium price increases and quantity remains the same

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: