POST UTME BSU 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's revenue function is given by R(q) = 10q. If the firm produces 3 units of output, what is its total revenue?
A. ₦30
B. ₦40
C. ₦50
D. ₦60
Question 2
A firm's \cost function is given by C = 2L + 3K. If the firm's current inputs are L = 10 and K = 5, what is the firm's current \cost?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 3
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function given by C(Q) = 10Q + 100. If the firm's marginal revenue (MR) curve intersects the marginal \cost (MC) curve at a point where the quantity produced is 50 units, what is the firm's price (P) at this point?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 4
Consider a pure public good with a demand function Q = 100 - 2P. If the government decides to provide this good at a price of ₦50, what will be the consumer surplus?
A. ₦2500
B. ₦2000
C. ₦1500
D. ₦1000
Question 5
A country's GNP at factor \cost is ₦1,500,000. If the value added tax (VAT) rate is 10%, calculate the GNP at market price.
A. ₦1,650,000
B. ₦1,700,000
C. ₦1,750,000
D. ₦1,800,000
Question 6
A firm's revenue function is given by R = 2x^2 + 3x. If the firm's current output is x = 5, what is the firm's current revenue?
A. ₦65
B. ₦70
C. ₦75
D. ₦80
Question 7
A firm's \cost function is given by C = 100 + 2L + 3K. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦200 per unit, calculate the total \cost of producing 50 units of output.
A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000
Question 8
A country's GDP is calculated as the sum of all final goods and services produced within its borders. However, this measure does not account for income earned by its citizens from abroad. Which of the following is a correct statement regarding the relationship between GDP and GNP?
A. GDP is always greater than GNP
B. GDP is always less than GNP
C. GDP and GNP are equal
D. GDP is equal to GNP minus net factor income from abroad
Question 9
A firm's production function is given by Q = 2L^0.5 K^0.5. If the firm's current inputs are L = 16 and K = 9, what is the firm's current output?
A. 32
B. 64
C. 128
D. 256
Question 10
A country's GNP at market price is ₦1,500,000. If the value added tax (VAT) rate is 10%, calculate the GNP at factor \cost.
A. ₦1,350,000
B. ₦1,400,000
C. ₦1,450,000
D. ₦1,500,000
Question 11
A firm is operating in a perfectly competitive market with a given market demand curve and a given market supply curve. If the firm's marginal revenue (MR) curve intersects the market demand curve at a point where the quantity demanded is 100 units, and the market price is ₦100, what is the firm's elasticity of demand (ED) at this point?
A. 0.5
B. 1.0
C. 1.5
D. 2.0
Question 12
A monopolist faces a demand curve given by Q = 100 - 2P. The marginal \cost curve is MC = 10. What is the profit-maximizing price?
A. ₦40
B. ₦50
C. ₦60
D. ₦70
Question 13
Suppose a firm is operating in a perfectly competitive market with a given market demand curve and a given market supply curve. If the firm's marginal revenue (MR) curve intersects the market demand curve at a point where the quantity demanded is 100 units, and the market price is ₦100, what is the firm's marginal \cost (MC) at this point?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 14
A country's GDP is ₦100 billion. The government decides to increase the price of a good by 10%. What is the new GDP?
A. ₦110 billion
B. ₦120 billion
C. ₦130 billion
D. ₦140 billion
Question 15
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 marginal product of labor.
A. 5 units of output
B. 10 units of output
C. 15 units of output
D. 20 units of output

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