POST UTME CHRISTOPHER UNIVERSITY 2019 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A government imposes a tax of 10% on a good. U\sing the concept of the Laffer curve, determine the effect on government revenue.
Question 2
A firm's production function is given by \( Q = 10L^0.5K^0.5 \), where ( Q ) is the output, ( L ) is the labor and ( K ) is the capital. If the firm wants to produce 100 units of output, and the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, what is the minimum \cost of production?
Question 3
A country's agricultural sector is characterized by a high degree of seasonality. What is the likely effect of this seasonality on the country's overall economic growth?
Question 4
A government is considering a tax on a particular good. The demand for the good is given by the equation \( Q_d = 100 - 2P \), where \( Q_d \) is the quantity demanded and ( P ) is the price. The supply of the good is given by the equation \( Q_s = 2P - 20 \), where \( Q_s \) is the quantity supplied. If the government imposes a tax of ₦10 on the good, what will be the new equilibrium price and quantity?
Question 5
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm increases price from $20 to $30, what is the percentage change in quantity demanded?
Question 6
A consumer has the following utility function: U(x,y) = 2x + 3y. The prices of x and y are $2 and $3, respectively. U\sing the budget constraint, find the consumer's optimal bundle of x and y.
Question 7
A firm is operating in a perfectly competitive market. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will happen to the firm's output?
Question 8
A country's GDP can be calculated u\sing the following formula: GDP = C + I + G + \( X - M \). If the country's consumption is ₦100 billion, investment is ₦50 billion, government sp\ending is ₦75 billion, exports are ₦200 billion, and imports are ₦150 billion, what is the country's GDP?
Question 9
A firm's average \cost curve is U-shaped, and its marginal \cost curve is initially downward sloping and then upward sloping. What is the likely cause of this shape?
Question 10
Consider a firm operating in a perfectly competitive market with a given \cost function C(q) = 2q^2 + 10q + 5 and a revenue function R(q) = 20q. U\sing the concept of marginal revenue and marginal \cost, determine the profit-maximizing quantity of output.
Question 11
A firm is considering two alternative production processes. Process A requires an initial investment of $100,000 and has a variable \cost of $20 per unit. Process B requires an initial investment of $150,000 and has a variable \cost of $15 per unit. If the firm produces 10,000 units, which process has the lower total \cost?
Question 12
A country's balance of payments account shows a trade deficit of $100 million and a capital account surplus of $150 million. What is the overall balance of payments position?
Question 13
A monopolist faces a demand curve with a price elasticity of -2. If the firm's marginal revenue is ₦100, what is the likely price elasticity of the demand curve?
Question 14
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP is 1000, consumption is 300, investment is 200, government sp\ending is 150, exports are 250, and imports are 100, what is the value of X?
Question 15
A firm's production function is given by \( Q = 10L^0.5K^0.5 \), where ( Q ) is the output, ( L ) is the labor and ( K ) is the capital. If the firm wants to produce 100 units of output, and the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, what is the minimum \cost of production?
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