POST UTME ACHIEVERS UNIVERSITY 2022 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm's demand curve is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the firm's supply curve is given by the equation Qs = 2P - 50, find the equilibrium price and quantity.
Question 2
A firm's total revenue (TR) is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm's marginal revenue (MR) is 80, find the value of x.
Question 3
A consumer's indifference curve is given by U = 2Q1 + Q2, where U is the level of satisfaction, Q1 and Q2 are the quantities consumed of two goods. If the consumer's current level of satisfaction is 10 units, and the quantity of good 1 consumed is 4 units, find the quantity of good 2 that the consumer is indifferent to.
Question 4
A firm's elasticity of demand is given by the equation E_d = \( P_1 - P_2 \) / \( Q_1 - Q_2 \), where E_d is the elasticity of demand, P_1 and P_2 are the initial and final prices, and Q_1 and Q_2 are the initial and final quantities. If the firm's demand curve is given by the equation Qd = 100 - 2P, and the initial and final prices are $10 and $20 respectively, find the elasticity of demand.
Question 5
A government imposes a tax on a firm's output. If the firm's supply curve shifts to the left, what is the effect on the equilibrium price and quantity?
Question 6
The government of Nigeria plans to implement a new budget policy to reduce the budget deficit. The policy involves a 10% reduction in the government's exp\enditure. If the current government exp\enditure is ₦1 trillion, calculate the new government exp\enditure.
Question 7
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current output is 16 units, and the number of workers (L) is 4, find the number of machines (K) required.
Question 8
The demand for a product is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. The supply of the product is given by the equation Q = 2P + 50. What is the equilibrium price and quantity of the product?
Question 9
A government is considering implementing a policy to reduce unemployment. The policy involves increa\sing the minimum wage. Which of the following is a likely effect of this policy?
Question 10
A firm's demand for labor is given by the equation L = 100 - 2P_L, where L is the quantity of labor demanded and P_L is the wage rate. If the wage rate increases from ₦50 to ₦60, what is the change in the quantity of labor demanded?
Question 11
Consider a production function with cons\tant returns to scale. If the output increases by 20% when the input increases by 10%, what is the value of the output elasticity of scale?
Question 12
Suppose the demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is -2, what is the percentage change in quantity demanded when the price increases by 10%?
Question 13
A firm's production function is given by Q = 2L^2 + 3K, where Q is the quantity of output, L is the quantity of labor, and K is the quantity of capital. If the firm increases the quantity of labor from 4 units to 6 units, while holding the quantity of capital cons\tant, what is the change in the marginal product of labor?
Question 14
A consumer has the following utility function: U = 2x + 3y, where x and y are the quantities of two goods consumed. The prices of the two goods are $10 and $20 respectively. The consumer's budget is $100. What is the consumer's optimal bundle of goods?
Question 15
A firm's demand function is given by Q = 100 - 2P. If the price of the good is ₦20, calculate the quantity demanded.
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