POST UTME ACHIEVERS UNIVERSITY 2023 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm's demand curve is given by Q = 100 - 2P. If the firm's marginal revenue (MR) curve is given by MR = 200 - 4P, what is the firm's equilibrium price?
Question 2
Consider a firm operating in a perfectly competitive market. The firm's marginal revenue (MR) and marginal \cost (MC) curves are given by MR = 100 - 2q and MC = 20 + 3q, respectively. Determine the firm's profit-maximizing output level.
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 16 units and the number of workers is 4, then the number of machines required is _______.
Question 4
A consumer's budget constraint is given by 2x + 3y = 100, where x and y are the quantities of two goods. If the consumer's utility function is given by U = x + 2y, what is the maximum utility the consumer can achieve?
Question 5
The following diagram shows the demand and supply curves for a particular good. If the price of the good is $10, then the quantity demanded is _______.
Question 6
A firm's \cost function is given by C = 100 + 2Q + 0.5Q^2, where Q is the quantity produced. If the firm produces 50 units, what is the total \cost?
Question 7
A monopolistically competitive firm faces a demand curve with a cons\tant elasticity of -2. If the firm's marginal revenue (MR) curve intersects its average revenue (AR) curve at a point where the elasticity of demand is 4, what is the firm's price elasticity of demand at the point of MR = AR?
Question 8
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 16 units, and the price of labor is ₦100 per unit, while the price of capital is ₦200 per unit, what is the firm's total \cost of production?
Question 9
The demand for a commodity is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price is 20, what is the quantity demanded?
Question 10
The government of a country imposes a tax on imported goods to raise revenue. This tax is an example of a _______ tax.
Question 11
The concept of scarcity in economics implies that the production of one good is at the expense of another. Which of the following is a correct example of scarcity?
Question 12
A firm is considering investing in a new project with the following cash flows: Year 0: -₦100,000, Year 1: ₦50,000, Year 2: ₦70,000, Year 3: ₦90,000. If the discount rate is 10%, calculate the net present value (NPV) of the project.
Question 13
A firm's demand for labor is given by the equation Q = 100L^0.5, where Q is the quantity of labor demanded and L is the wage rate. If the wage rate increases by 20%, what is the percentage change in the quantity of labor demanded?
Question 14
A government imposes a tax of ₦10 on a good. If the supply function is given by Q = 100 - 2P and the demand function is given by Q = 50 + 2P, what is the equilibrium price?
Question 15
The following diagram shows the production possibilities frontier for a country. If the country chooses to produce 100 units of good X, then the opportunity \cost of producing 1 unit of good Y is _______.
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