POST UTME AAUA 2020 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \). If the country's exports are ₦100 billion, imports are ₦80 billion, foreign investment is ₦20 billion, and domestic investment is ₦30 billion, what is the balance of payments?
Question 2
Suppose the production function for a firm is given by Q = 100L^0.5K^0.5, where Q is output, L is labor and K is capital. If the firm increases labor from 100 to 121 units, and capital from 100 to 121 units, by how much will output increase?
Question 3
A country's balance of payments is given by the following 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 and the value of imports is 80, what is the balance of payments?
Question 4
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 u\sing the Hotelling's rule.
Question 5
A firm's revenue function is given by R(x) = 3x^2 - 2x + 1. If the firm produces 15 units of the good, what is the marginal revenue?
Question 6
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are $2 and $3 respectively, and the consumer's income is $10, what is the consumer's optimal bundle of goods?
Question 7
The following diagram shows the supply and demand curves for a product. If the price elasticity of supply is 2 and the price elasticity of demand is -3, what is the equilibrium price and quantity?
Question 8
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 100 units and the price of labor is ₦10 per unit, what is the minimum \cost of production?
Question 9
A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production functions are given by Qx = 2L + 3K and Qy = 4L + 2K. If the firm has 10 units of labor and 5 units of capital, what is the total output of the firm?
Question 10
A firm's production function is given by Q = 2L^2 + 5L. If the wage rate is ₦50 per hour, find the profit-maximizing level of labor u\sing the Kuhn-Tucker method.
Question 11
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.
Question 12
A consumer has the following utility function: U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are $2 and $3 respectively, and the consumer has a budget of $10, what is the consumer's optimal consumption bundle?
Question 13
The law of diminishing returns states that as the quantity of a variable input is increased, while the quantity of a fixed input is held cons\tant, the marginal product of the variable input will eventually
Question 14
The concept of comparative advantage suggests that a country should specialize in producing goods for which it has a
Question 15
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are $2 and $3 respectively, and the consumer's income is $10, what is the consumer's optimal bundle of goods?
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