POST UTME AAUA 2021 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A consumer has a utility function U(x,y) = 2x + 3y. If the prices of x and y are ₦5 and ₦3 respectively, and the consumer has a budget of ₦20, what is the optimal bundle of x and y?
Question 2
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. The budget constraint is given by 2x + 3y = 100. Find the consumer's optimal bundle of goods.
Question 3
A firm's demand curve is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply curve is given by Qs = 2P - 50. Find the equilibrium price and quantity.
Question 4
The government of Nigeria has implemented a policy to increase the production of rice. The policy involves providing subsidies to farmers and increa\sing the import duty on rice. The supply and demand curves for rice are given by the equations ( S(p) = 100 - 2p ) and ( D(p) = 50 + 3p ) respectively. If the government wants to increase the production of rice, what should be the optimal price of rice?
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to increase its output by 20% and the labor input is fixed at 100 units, what is the required increase in the capital input?
Question 6
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to increase its output by 20% and the labor input is fixed at 100 units, what is the required increase in the capital input?
Question 7
A company produces two products, x and y, u\sing two inputs, labor and capital. The production functions for x and y are given by the equations \( x = 2L + 3K \) and \( y = 4L + 2K \) respectively. If the company has 100 units of labor and 50 units of capital, find the optimal production levels of x and y.
Question 8
A monopolist faces a demand curve given by \( Q = 100 - 2P \). The marginal revenue (MR) function is given by \( MR = 200 - 2Q \). Find the profit-maximizing price and quantity.
Question 9
Suppose a firm is producing a good with a cons\tant elasticity of demand of 2. If the price of the good increases by 10%, what is the percentage change in the quantity demanded?
Question 10
A firm's demand curve is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's marginal revenue is $5, what is the optimal price?
Question 11
A consumer's indifference curve is given by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, find the consumer's optimal bundle of x and y.
Question 12
A country's balance of payments account is in equilibrium when the current account is equal to the capital account. If the current account is ₦100 billion and the capital account is ₦150 billion, what is the balance of payments deficit?
Question 13
A firm's \cost function is given by C = 100 + 2Q + 3Q^2, where C is the total \cost and Q is the quantity produced. The revenue function is given by R = 200 - 2Q. Find the profit-maximizing quantity.
Question 14
A country's GDP is $100 billion and its GNP is $120 billion. What is the value of the net factor income from abroad?
Question 15
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm wants to produce 100 units of output, and the wage rate is $10 per unit of labor, and the rental rate of capital is $5 per unit of capital, what is the optimal level of labor?
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