POST UTME CALEB UNIVERSITY 2022 Economics | Objective
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Question 1
A firm's \cost function is given by C(x) = 2x^2 + 10x + 1000, where x is the number of units produced. If the firm's revenue function is R(x) = 2x^2 + 10x + 5, find the profit-maximizing level of production.
Question 2
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm wants to increase its output by 20% while keeping labor cons\tant at 16 units, how much capital should it hire?
Question 3
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 both goods remain cons\tant, what is the likely effect on the consumer's budget line?
Question 4
A firm's demand curve is given by Q = 100 - 2P. What is the price elasticity of demand at a price of $20?
Question 5
A country is experiencing a trade deficit due to an increase in imports and a decrease in exports. If the country's exchange rate is fixed, what will be the effect on the balance of payments?
Question 6
A consumer's budget constraint is given by P1Q1 + P2Q2 = I, where P1 and P2 are the prices of two goods, Q1 and Q2 are the quantities consumed, and I is the consumer's income. What is the opportunity \cost of consuming one more unit of good 1?
Question 7
A firm's average total \cost (ATC) curve is U-shaped, with ATC initially decrea\sing and then increa\sing. What is the primary reason for this shape?
Question 8
A country's GDP is $100 billion, and its government sp\ends $20 billion on infrastructure. What is the multiplier effect of this exp\enditure on the country's GDP?
Question 9
A country's supply curve is given by the equation Q = 2P + 10, where Q is quantity supplied and P is price. If the country's demand curve is given by the equation Q = 100 - 2P, what is the equilibrium price?
Question 10
A consumer's budget constraint is 2x + 3y = 12, where x and y are the quantities of two goods consumed. If the consumer's utility function is U(x, y) = 2x^0.5y^0.5, find the optimal consumption bundle.
Question 11
A firm's \cost function is given by C = 2L + 3K, where C is \cost, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 20% and 15%, respectively, what is the percentage change in \cost?
Question 12
The concept of scarcity in economics implies that the production of one good or service is often at the expense of another. Which of the following is a correct example of this principle?
Question 13
A firm is considering the production of two goods, A and B. The production function for good A is given by Q_A = 2L^0.5K^0.5, where L is labor and K is capital. The production function for good B is given by Q_B = 3L^0.7K^0.3. If the firm has 100 units of labor and 50 units of capital, what is the total product of good A?
Question 14
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm increases its labor input from 16 to 25 units, and keeps its capital input cons\tant at 9 units, what is the percentage change in output?
Question 15
A firm's demand function is given by Q = 100 - 2P, where P is the price of the good. If the firm's marginal \cost is ₦5 per unit, find the profit-maximizing price.
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