POST UTME COVENANT UNIVERSITY 2020 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm is producing a good with a production function Q = 3L^0.5K^0.5, where L is labor and K is capital. If the price of labor is $10 per hour and the price of capital is $20 per unit, and the firm is currently producing 100 units of output, what is the marginal product of capital (MPC) in terms of output?
Question 2
A firm is producing a good u\sing 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 firm is currently producing 10 units of the good, what is the marginal product of labor?
Question 3
A firm is producing a good u\sing two inputs, labor and capital. The production function is given by 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 10 units of the good, what is the total \cost of production?
Question 4
The Nigerian government has introduced a policy to promote industrialization in the country. The policy involves providing subsidies to firms that produce goods u\sing local raw materials. If a firm is producing a good u\sing 100 units of local raw materials and the subsidy is ₦50 per unit, what is the total subsidy received by the firm?
Question 5
A consumer's utility function is given by U(x, y) = 2x + 3y, where x and y are the quantities of two goods consumed. Determine the marginal rate of substitution of good x for good y when the consumer is at the point (2, 3).
Question 6
A consumer has the following utility function: U(x,y) = 2x + 3y. If the prices of x and y are $2 and $3 respectively, and the consumer has a budget of $10, what is the optimal bundle of x and y?
Question 7
A firm's production function is given by Q = 2L^\( 2/3 \)K^\( 1/3 \), where L is labor and K is capital. If the firm's output is 8 units, and labor is 4 units, what is the value of capital (K)?
Question 8
A firm produces a product with a production function Q = 2L^0.5K^0.5, where L is labor and K is capital. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, find the \cost-minimizing combination of labor and capital.
Question 9
A firm is producing a good u\sing 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 firm is currently producing 10 units of the good, what is the total revenue?
Question 10
Consider a firm operating in a perfectly competitive market with a production function given by Q = 2L^0.5K^0.5. If the price of the good is $10 and the wage rate is $5 per unit of labor, what is the optimal level of labor to hire?
Question 11
A consumer has an indifference curve given by U = 2x^0.5y^0.5, where x is the quantity of good X and y is the quantity of good Y. If the price of good X is ₦50 per unit and the price of good Y is ₦100 per unit, find the consumer's optimal bundle of goods.
Question 12
A firm's \cost function is given by C(x) = 100 + 2x + 0.5x^2, where x is the number of units produced. Determine the marginal \cost when the firm produces 20 units.
Question 13
A consumer's utility function is given by U = x^2 + 2y^2, where x and y are the quantities of two goods. 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?
Question 14
A monopolistically competitive firm faces a demand curve with a cons\tant elasticity of -2. If the firm's marginal revenue (MR) is given by MR = 100 - 2Q, where Q is the quantity sold, what is the firm's optimal quantity?
Question 15
A firm has a production function given by \( Q = 2L^{1/2}K^{1/2} \). If the firm's labor and capital inputs are \( L = 4 \) and \( K = 9 \), respectively, what is the firm's output?
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.
Unlock Full Access
Available for Android & Windows