POST UTME CALEB UNIVERSITY 2020 Economics | Objective

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Question 1
A firm's production function is given by Q = 100L^0.5K^0.5. If the firm increases its labor input by 20% and holds capital input cons\tant, what is the percentage change in output?
A. 10%
B. 15%
C. 20%
D. 25%
Question 2
A country's balance of payments account shows a trade deficit of $100 million and a capital account surplus of $50 million. What is the overall balance of payments position?
A. Trade deficit of $50 million
B. Trade surplus of $50 million
C. Capital account surplus of $50 million
D. Overall balance of payments deficit of $50 million
Question 3
Consider a consumer with a utility function U(x,y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦3 respectively, determine the optimal quantities of the two goods that the consumer will purchase.
A. (x,y) = (160,120)
B. (x,y) = (120,160)
C. (x,y) = (100,200)
D. (x,y) = (200,100)
Question 4
A government imposes a tax on a firm's output. If the firm's supply curve shifts from S1 to S2, what is the effect on the equilibrium price and quantity?
A. Price increases and quantity decreases
B. Price decreases and quantity increases
C. Price increases and quantity increases
D. Price decreases and quantity decreases
Question 5
A country's GDP is $100 billion, its imports are $20 billion, and its exports are $30 billion. What is its GNP?
A. $120 billion
B. $130 billion
C. $140 billion
D. $150 billion
Question 6
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm has 100 units of labor and 200 units of capital, determine the output.
A. 100 units
B. 200 units
C. 300 units
D. 400 units
Question 7
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital are increased by 20% and 15% respectively, what is the percentage change in output?
A. 10%
B. 12%
C. 15%
D. 18%
Question 8
A firm has a total revenue function given by TR = 2Q^2 - 10Q + 100. If its total \cost function is TC = Q^2 + 20Q + 100, what is the profit-maximizing quantity?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 9
A government imposes a tax on a firm's output. The firm's supply curve shifts to the left. What is the effect on the equilibrium price?
A. Increase
B. Decrease
C. No change
D. Indeterminate
Question 10
A country's GDP is given by GNP - \( imports - exports \). If the country's GNP is ₦1000, imports are ₦200, and exports are ₦300, what is the country's GDP?
A. ₦800
B. ₦900
C. ₦1000
D. ₦1100
Question 11
Consider a country with a balance of payments deficit. Which of the following would be a consequence of this deficit?
A. Increased foreign investment
B. Decreased domestic consumption
C. Reduced exchange rate
D. Increased trade deficit
Question 12
A monopolist has a demand function P = 100 - Q and a marginal \cost function MC(q) = 20. What is the monopolist's profit-maximizing quantity?
A. q = 10
B. q = 20
C. q = 30
D. q = 40
Question 13
A bank has a reserve requirement of 10% and a cash reserve of $100 million. If it receives a new deposit of $50 million, what is the maximum amount of new loans it can make?
A. $400 million
B. $450 million
C. $500 million
D. $550 million
Question 14
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital are increased by 20% and 15% respectively, what is the new production function?
A. Q = 120L^0.5K^0.5
B. Q = 125L^0.5K^0.5
C. Q = 130L^0.5K^0.5
D. Q = 135L^0.5K^0.5
Question 15
A consumer has a budget constraint of 100 units of currency and faces the following prices: good A \costs 5 units and good B \costs 3 units. The consumer's utility function is given by U(x,y) = 2x + 3y. Determine the optimal quantities of the two goods that the consumer will purchase.
A. (x,y) = (20,10)
B. (x,y) = (15,15)
C. (x,y) = (10,20)
D. (x,y) = (5,25)

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