POST UTME BOWEN UNIVERSITY 2017 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm's production function is given by \( Q = 2L^2 + 3K^2 \), where ( L ) is labor and ( K ) is capital. If the firm uses 10 units of labor and 5 units of capital, what is the output?
Question 2
A monopolist faces a demand curve given by the equation Qd = 100 - 2P. If the firm's marginal \cost (MC) is cons\tant at ₦20 per unit, what is the likely effect on the firm's profit-maximizing price and output level if the government imposes a tax of ₦5 per unit?
Question 3
A government imposes a tax of ₦5 per unit on a good. The demand for the good is given by the inverse demand function \( p = 100 - 2q \), where (p) is the price and (q) is the quantity demanded. The supply of the good is given by the inverse supply function \( p = 20 + 3q \). What will be the new equilibrium price and quantity?
Question 4
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost is MC = 10 + 2Q. Find the profit-maximizing price and quantity.
Question 5
The government of a country imposes a subsidy on a particular good, which decreases the price of the good by 15%. If the supply of the good is given by the equation Qs = 100 + 2P, where Qs is the quantity supplied and P is the price, what is the new supply equation after the subsidy is imposed?
Question 6
A country's national income is ₦100 billion, and its population is 20 million. What is the per capita income?
Question 7
A country's balance of payments account shows a trade deficit of ₦50 billion. If the country's foreign exchange reserves are ₦100 billion, what is the percentage change in the reserves?
Question 8
A firm produces two goods, X and Y, u\sing two inputs, labor and capital. The production function for good X is given by Qx = 10L^0.5K^0.5, where Qx is the quantity of good X produced, L is the amount of labor used, and K is the amount of capital used. If the price of good X is ₦100 and the price of good Y is ₦200, and the firm's budget constraint is 100L + 200K = ₦1000, what is the optimal combination of labor and capital that the firm should use?
Question 9
A firm's average \cost curve is given by \( AC = \frac{100}{x} + 10 \), where ( x ) is the number of units produced. If the firm produces 20 units, what is the average \cost?
Question 10
A firm's \cost function is given by C(x) = 100 + 2x^2, where x is the number of units produced. If the firm produces 10 units, what is the total \cost?
Question 11
A government's budget constraint is given by G = T + I, where G is government exp\enditure, T is tax revenue, and I is interest payment. If the government's tax revenue is ₦100, interest payment is ₦50, and government exp\enditure is ₦150, what is the budget deficit?
Question 12
A firm's demand curve is given by Q = 100 - 2P. The firm's supply curve is given by Q = 2P. Find the equilibrium price and quantity.
Question 13
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, it will
Question 14
Consider a country with a perfectly competitive market for a particular good. The demand for this good is given by the inverse demand function \( p = 100 - 2q \), where (p) is the price and (q) is the quantity demanded. The supply of this good is given by the inverse supply function \( p = 20 + 3q \). If the government imposes a tax of ₦10 per unit on the producers, what will be the new equilibrium price and quantity?
Question 15
A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production functions are given by X = 2L + 3K and Y = 3L + 2K. If the firm has 10 units of labor and 8 units of capital, what is the total output?
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