POST UTME CALEB UNIVERSITY 2021 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm's total \cost is given by the equation TC = 500 + 20x + 2x^2, where x is the number of units produced. What is the marginal \cost when x = 10?
Question 2
A monopolistically competitive firm faces a demand curve with the following equation: \( Q = 100 - 2P \). The firm's marginal \cost (MC) is given by \( MC = 10 + 2Q \). If the firm's fixed \cost is ₦500, what is the profit-maximizing price?
Question 3
The government of Nigeria has implemented policies to promote agricultural development. Which of the following is a major benefit of agricultural development?
Question 4
Agricultural industrialization in Nigeria has been hindered by the lack of infrastructure. Which of the following is a consequence of this lack of infrastructure?
Question 5
A firm's production function is given by \( Q = 2L^0.5K^0.5 \). If the firm's input prices are \( w = 10 \) and \( r = 20 \), what is the profit-maximizing level of labor?
Question 6
A government imposes a tax on imports to reduce the trade deficit. However, the tax leads to a decrease in the quantity of imports. What is the opportunity \cost of this tax?
Question 7
A government's budget constraint is given by G = 100 + 0.5T, where G is government exp\enditure and T is tax revenue. If the government wants to sp\end ₦150, find the required tax revenue.
Question 8
A country's GDP is given by the equation Y = C + I + G, where Y is the GDP, C is the consumption, I is the investment, and G is the government sp\ending. If the country's consumption is $100, investment is $50, and government sp\ending is $20, what is the GDP?
Question 9
The concept of scarcity in economics implies that the unlimited wants of individuals are limited by the available resources. Which of the following is a consequence of scarcity?
Question 10
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 4x + 2y = 12, and the prices of the two goods are $2 and $3 respectively, what is the consumer's optimal bundle of goods?
Question 11
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 elasticity of demand is cons\tant and equal to 2, what is the percentage change in quantity demanded when the price increases by 10%?
Question 12
A consumer has the following utility function: \( U = 2x + 3y \), where x and y are the quantities of goods X and Y respectively. If the prices of goods X and Y are ₦20 and ₦30 respectively, and the consumer's income is ₦100, what is the optimal consumption bundle?
Question 13
A firm's revenue function is given by R(Q) = 100Q - 2Q^2. Find the marginal revenue function.
Question 14
The government of Nigeria plans to implement a new tax policy to reduce income inequality. The tax policy involves a progressive tax system where the tax rate increases as income increases. If the tax rate is 10% for income between ₦0 and ₦50,000, 20% for income between ₦50,000 and ₦100,000, and 30% for income above ₦100,000, what is the total tax paid by a person with an income of ₦150,000?
Question 15
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing quantity and price.
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