POST UTME COVENANT UNIVERSITY 2019 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are 16 and 9 units respectively, what is the total product of labor?
Question 2
A country's GDP is given by the equation Y = C + I + G. If the current values of consumption, investment, and government sp\ending are 100, 50, and 20 respectively, what is the country's GDP?
Question 3
A firm produces two products, A and B, u\sing two inputs, labor and capital. The production function for product A is given by Q_A = 2L^0.5K^0.5, where Q_A is the quantity of product A produced, L is the amount of labor used, and K is the amount of capital used. The production function for product B is given by Q_B = 3L^0.7K^0.3. If the firm uses 100 units of labor and 50 units of capital, calculate the total revenue from the sale of both products.
Question 4
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 per unit of labor and r = ₦200 per unit of capital, and the firm's current output price is p = ₦500 per unit, calculate the firm's profit-maximizing level of labor input, given that the firm's current capital input is K = 100 units.
Question 5
A monopolist faces a demand curve given by Q = 100 - 2P. If the firm's marginal revenue (MR) is given by MR = 200 - 2Q, what is the firm's optimal price?
Question 6
A central bank increases the money supply by ₦10 billion. If the velocity of money is 2, find the increase in the price level.
Question 7
Suppose a firm is operating in a perfectly competitive market with a downward-sloping demand curve. If the firm increases its output from 100 units to 120 units, and the price falls from ₦100 to ₦90, what is the price elasticity of demand?
Question 8
A firm has a production function Q = 100K^0.5L^0.5, where K is capital and L is labor. If the firm increases its capital by 20% and labor by 15%, what will be the percentage change in output?
Question 9
A country has a money supply of ₦500 billion and a velocity of circulation of 2. If the central bank increases the money supply by 10%, what will be the new money supply?
Question 10
Consider a central bank that aims to maintain a price level of 2% inflation rate. If the current money supply is ₦100 billion and the velocity of money is 5, calculate the central bank's required money supply to achieve the desired inflation rate.
Question 11
A country's balance of payments is given by the equation BOP = X - M, where X is exports and M is imports. If the country's exports are ₦500 billion and its imports are ₦600 billion, what is the country's balance of payments?
Question 12
A monopolist faces a demand curve given by Q = 100 - 2P. If the firm's marginal revenue (MR) is given by MR = 200 - 2Q, what is the firm's optimal price?
Question 13
A firm's demand curve is given by the equation Qd = 100 - 2P, where Qd is demand and P is price. If the firm's marginal revenue is ₦50, what is the firm's optimal price?
Question 14
A consumer's indifference curve is represented by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, find the consumer's optimal bundle of x and y.
Question 15
A consumer's indifference curve is given by the equation u(x,y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
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