POST UTME COVENANT UNIVERSITY 2018 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm is producing a good with the following production function: Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm is currently producing 100 units of the good, what is the minimum \cost of producing 120 units of the good?
Question 2
A government budget is given by the equation B = 1000 + 0.2Y, where B is the budget and Y is the national income. If the national income is 5000, find the value of the budget.
Question 3
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the price is ₦50, find the quantity demanded.
Question 4
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the firm's current input levels are L = 16 and K = 9, what is the marginal product of labor (MPL) when K = 9?
Question 5
A firm's production function is given by Q = 10L^0.5K^0.5. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
Question 6
A government's tax revenue is given by the equation TR = 0.2Y, where TR is the tax revenue and Y is the national income. If the national income is 5000, find the tax revenue.
Question 7
A country's government budget is given by B = T + I, where B is budget, T is tax revenue, and I is government sp\ending. If the government increases tax revenue by 10% and sp\ending by 20%, what is the new budget?
Question 8
The agricultural sector in Nigeria contributes significantly to the country's GDP. However, the sector faces numerous challenges, including inadequate infrastructure, lack of access to credit, and limited market information. Which of the following policies would be most effective in addres\sing these challenges?
Question 9
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 price of labor is ₦100 per unit and the price of capital is ₦200 per unit, find the total \cost of producing 4 units of output.
Question 10
A firm's \cost function is given by C = 10L + 20K. If the firm's labor and capital inputs are increased by 10% and 15% respectively, what is the percentage change in total \cost?
Question 11
A consumer has a utility function given by U(X,Y) = 2X + 3Y, where X is the quantity of good X and Y is the quantity of good Y. If the consumer's budget constraint is given by P_X X + P_Y Y = 100, where P_X and P_Y are the prices of goods X and Y, respectively, and P_X = 2P_Y, what is the consumer's optimal bundle of goods X and Y?
Question 12
A country has a production function: Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the country is currently producing 100 units of the good, what is the minimum \cost of producing 120 units of the good?
Question 13
A firm is producing a good with the following production function: Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm is currently producing 100 units of the good, what is the minimum \cost of producing 120 units of the good?
Question 14
A firm's production function is given by Q = 100K^0.5L^0.5, where Q is output, K is capital, and L is labor. If the firm's capital stock increases by 20% and labor remains cons\tant, what is the percentage change in output?
Question 15
Agricultural development in Nigeria has been hindered by the lack of access to credit for small-scale farmers. Which of the following government policies would most likely address this issue?
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