POST UTME COAL CITY UNIVERSITY 2021 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm is considering two production processes: one that uses 10 units of labor and 5 units of capital to produce 100 units of output, and another that uses 15 units of labor and 3 units of capital to produce 120 units of output. If the firm has 20 units of labor and 10 units of capital available, which production process should it choose?
Question 2
Suppose the demand for a product is given by Qd = 100 - 2P and the supply is given by Qs = 2P - 10. What is the equilibrium price and quantity?
Question 3
A firm faces a demand curve given by Qd = 100 - 2P and a supply curve given by Qs = 50 + 2P. If the firm produces 30 units of the good, what is the consumer surplus?
Question 4
Consider a small open economy with a trade balance of -100, a current account balance of -50, and a capital account balance of 50. What is the country's overall balance of payments position?
Question 5
The demand for a product 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 -2, what is the percentage change in quantity demanded when the price increases by 10%?
Question 6
The Central Bank of Nigeria (CBN) uses the monetary policy instrument of Open Market Operations (OMO) to increase the money supply in the economy. If the CBN buys government securities from commercial banks, what is the effect on the money supply?
Question 7
A consumer has the following utility function: U(X,Y) = 2X + 3Y. The prices of X and Y are $2 and $3, respectively. If the consumer has a budget of $15, what is the optimal quantity of X and Y to consume?
Question 8
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the product is given by the equation Qs = 2P - 50, where Qs is the quantity supplied. Find the equilibrium price and quantity.
Question 9
A country's agricultural sector is given by the following equation: Q = 2A^0.5L^0.5. If the country's agricultural input and labor are 4 and 9 respectively, what is the marginal product of labor?
Question 10
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost is MC = 10. If the monopolist produces 50 units, what is the consumer surplus?
Question 11
A government imposes a tax of ₦10 on every unit of a product. The demand for the product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the product is given by the equation Qs = 2P - 50, where Qs is the quantity supplied. Find the new equilibrium price and quantity.
Question 12
A government imposes a tax on a firm's output. If the firm's supply curve shifts to the left, what is the effect on the equilibrium price and quantity of the good?
Question 13
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input levels are L = 16 and K = 9, what is the marginal product of labor (MPL) when the firm is u\sing these input levels?
Question 14
A monopolist faces a demand curve given by Qd = 100 - 2P and a \cost function C(Q) = 10Q + 100. If the monopolist produces 20 units of the good, what is the consumer surplus?
Question 15
A firm produces two goods, A and B, u\sing two inputs, labor and capital. The production functions are given by Q_A = 2L^0.5 K^0.5 and Q_B = 3L^0.7 K^0.3. If the firm has 100 units of labor and 50 units of capital, what is the total output of the firm?
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