POST UTME BSU 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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 constraint is 10x + 5y = 50, what is the consumer's optimal bundle of goods?
A. x = 2, y = 4
B. x = 4, y = 2
C. x = 3, y = 3
D. x = 1, y = 1
Question 2
A consumer's indifference curve for two goods, X and Y, is given by the equation U = 2X + 3Y. If the consumer's income is ₦1000 and the prices of X and Y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle of X and Y?
A. \( X = 40, Y = 30 \)
B. \( X = 30, Y = 40 \)
C. \( X = 20, Y = 50 \)
D. \( X = 50, Y = 20 \)
Question 3
A firm's demand function is given by Q = 100 - 2P + 3Y, where Q is the quantity demanded, P is the price, and Y is the income. If the price elasticity of demand is -2, what is the cross-price elasticity of demand with respect to income?
A. 6
B. 4
C. 8
D. 10
Question 4
Consider a firm operating in a perfectly competitive market with a given production function Q = 2L^0.5 * K^0.5. If the price of the good is P = 10 and the wage rate is W = 5, calculate the optimal level of labor (L) and capital (K) u\sing the first-order conditions for profit maximization.
A. L = 4, K = 16
B. L = 16, K = 4
C. L = 2, K = 8
D. L = 8, K = 2
Question 5
A firm is considering investing in a new project with the following cash flows: Year 0: -₦100, Year 1: ₦50, Year 2: ₦75, Year 3: ₦100. Calculate the net present value (NPV) of the project u\sing a discount rate of 10%.
A. ₦25
B. ₦50
C. ₦75
D. ₦100
Question 6
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.
A. True
B. False
C. Maybe
D. It dep\ends
Question 7
A firm's \cost function is given by C(x) = 2x^2 + 10x + 5. If the firm produces 25 units, what is the total \cost?
A. 625
B. 750
C. 875
D. 1000
Question 8
The concept of comparative advantage is related to the idea that countries should specialize in producing goods and services for which they have a lower opportunity \cost.
A. True
B. False
C. Maybe
D. It dep\ends
Question 9
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 income is ₦1000 and the prices of X and Y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle of X and Y?
A. \( X = 40, Y = 30 \)
B. \( X = 30, Y = 40 \)
C. \( X = 20, Y = 50 \)
D. \( X = 50, Y = 20 \)
Question 10
A country's balance of payments (BOP) is given by the following equation: BOP = X - M, where X is exports and M is imports. If the country's exports are ₦200 and imports are ₦150, what is the country's balance of payments?
A. ₦50
B. ₦100
C. ₦150
D. ₦200
Question 11
A monopolist faces a demand curve given by Qd = 100 - 2P and a marginal \cost curve given by MC = 10 + 2Q. If the firm produces 20 units, what is the consumer surplus?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 12
The concept of opportunity \cost is related to the idea that the best alternative that is given up when a choice is made.
A. True
B. False
C. Maybe
D. It dep\ends
Question 13
A firm's production function is given by Q = 2L^0.5 * K^0.5. If the price of the good is P = 10 and the wage rate is W = 5, calculate the optimal level of labor (L) and capital (K) u\sing the first-order conditions for profit maximization.
A. L = 4, K = 16
B. L = 16, K = 4
C. L = 2, K = 8
D. L = 8, K = 2
Question 14
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.
A. True
B. False
C. Maybe
D. It dep\ends
Question 15
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is the output, L is the labor and K is the capital. If the firm wants to increase its output by 10%, what percentage increase in labor and capital is required?
A. 5% increase in labor and 5% increase in capital
B. 10% increase in labor and 10% increase in capital
C. 15% increase in labor and 15% increase in capital
D. 20% increase in labor and 20% increase in capital

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