POST UTME ABU 2017 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm's supply function is given by Q = 50 + 2P. If the price of the good (P) increases by 20%, what is the new value of the elasticity of supply (ES)?
Question 2
The government of Nigeria has introduced a new policy to increase agricultural production. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing access to credit. However, the policy also includes a provision to increase the price of fertilizers by 20%. Assuming that the demand for fertilizers is elastic, what is the likely effect of the price increase on the quantity of fertilizers demanded?
Question 3
A consumer has the following utility function: U(x, y) = 2x + 3y. The consumer's budget constraint is 100. The price of good x is ₦10 and the price of good y is ₦20. What is the consumer's optimal bundle of goods?
Question 4
A firm is producing a good with the following production function: Q = 2L^0.5 + 3K^0.5. The firm is currently producing 10 units of the good. What is the marginal product of labor?
Question 5
A country's GDP is given by the formula \( GDP = C + I + G + \( X - M \ \) ). If the country's GDP is $100 billion and the government exp\enditure is $20 billion, what is the value of the net exports?
Question 6
A firm's demand function is given by Q = 100 - 2P. If the price of the good (P) increases by 20%, what is the new value of the elasticity of demand (ED)?
Question 7
A central bank increases the money supply (M) by 10%. What is the new value of the inflation rate (π)?
Question 8
A firm produces two products, A and B, u\sing two inputs, labor and capital. The production functions are Q_A = 2L - 3K and Q_B = 3L + 2K. If the firm has 10 units of labor and 5 units of capital, determine the optimal production plan.
Question 9
A bank's reserve requirement is 20%. If the bank has ₦100 million in deposits and the reserve requirement is 20%, find the amount of loans the bank can make.
Question 10
A consumer's budget constraint is given by the equation \( 2x + 3y = 12 \). If the consumer's income is $12 and the price of good x is $2, what is the value of the quantity of good y?
Question 11
The demand function for a product is given by Q = 100 - 2P. If the price of the product is ₦20, what is the quantity demanded?
Question 12
A farmer produces wheat and maize. The production function for wheat is Qw = 100L^0.5K^0.5 and for maize is Qm = 50L^0.5K^0.5. If the farmer has 100 units of labor and 50 units of capital, what is the optimal allocation of labor and capital between wheat and maize?
Question 13
Consider a consumer with a utility function U(x,y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, what is the optimal bundle of x and y?
Question 14
A firm has a \cost function of C = 2x^2 + 3x, where x is the quantity produced. Find the marginal \cost function.
Question 15
A government imposes a tax of ₦5 on a product. The demand for the product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. Find the new equilibrium price and quantity.
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