POST UTME BABCOCK UNIVERSITY 2024 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm's elasticity of demand is 0.5. If the price of its product increases by 10%, what will happen to its revenue?
Question 2
A government imposes a tax of $1 per unit on a firm's output. The firm's supply curve is given by Q = 2P - 10. What is the new supply curve after the tax?
Question 3
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 4
A country's GNP is ₦120 billion, its imports are ₦80 billion, and its exports are ₦60 billion. What is its balance of trade?
Question 5
A central bank increases the money supply by 10%. What is the effect on the price level?
Question 6
A consumer's budget constraint is given by P1Q1 + P2Q2 = I, where P1 and P2 are prices, Q1 and Q2 are quantities, and I is income. If the consumer's income increases by 10% and the prices of goods 1 and 2 increase by 5% and 8% respectively, what is the new budget constraint equation?
Question 7
A firm is operating in a perfectly competitive market with a demand curve given by Qd = 100 - 2P and a supply curve given by Qs = 2P. Find the equilibrium price and quantity.
Question 8
A firm's production function is given by the equation Q = 2L^0.5K^0.5, where Q is the output and L and K are the inputs. If the firm's \cost function is given by the equation C(L, K) = 2L + 3K, what is the firm's \cost-minimizing input combination?
Question 9
A government imposes a tax of $1 per unit on a firm's output. The firm's supply curve is given by Q = 2P - 10. What is the new supply curve after the tax?
Question 10
A firm's demand curve is given by Q = 100 - 2P. If the firm's marginal revenue (MR) is 20, what is its marginal \cost (MC)?
Question 11
A firm's demand curve is given by Qd = 100 - 2P and its supply curve is given by Qs = 2P. If the firm's elasticity of demand is 2 and the price is ₦75, what is the quantity demanded?
Question 12
A consumer's indifference curve is given by U = 2X + 3Y, where U is utility, X is quantity of good 1, and Y is quantity of good 2. If the consumer's income increases by 10% and the prices of goods 1 and 2 increase by 5% and 8% respectively, what is the new indifference curve equation?
Question 13
A firm has a production function Q = 2L^2 + 3K. The wage rate is $10 and the rental rate is $5. What is the firm's profit-maximizing level of labor?
Question 14
A firm's \cost function is given by C = 2L + 3K. If the firm's current \cost is ₦1500 and the number of workers (L) is 3, find the number of machines (K) required.
Question 15
A firm's production function is given by the equation Q = 2L^0.5K^0.5, where Q is the output and L and K are the inputs. If the firm's \cost function is given by the equation C(L, K) = 2L + 3K, what is the firm's \cost-minimizing input combination?
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.
Unlock Full Access
Available for Android & Windows