POST UTME ELIZADE UNIVERSITY 2022 Economics | Objective
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Question 1
A firm is experiencing increa\sing returns to scale in its production process. If the firm's output increases from 100 units to 200 units, what is the percentage change in its total output?
Question 2
A firm's revenue function is given by R = 100L + 200K, where R is revenue, L is labor, and K is capital. If the firm's labor and capital are increased by 20% and 15% respectively, what is the percentage change in revenue?
Question 3
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 4
A firm is producing a product u\sing a production function given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. The firm has 100 units of labor and 200 units of capital. What is the marginal product of labor (MPL) and the marginal product of capital (MPK) when the firm is producing 50 units of the product?
Question 5
A country's export supply function is given by X = 100 + 2P, where X is exports and P is the price of the exported good. If the price of the exported good increases by 20%, what is the percentage change in exports?
Question 6
A farmer produces wheat and maize. The production functions are given by W = 100x - 2x^2 and M = 50x - x^2, where W is the quantity of wheat, M is the quantity of maize, and x is the input. If the farmer has 10 units of input, what is the total output?
Question 7
A country's GNP is ₦120 billion, its net factor income from abroad is ₦10 billion, and its GDP is ₦110 billion. What is its net foreign income?
Question 8
A consumer is faced with the following budget constraint: 2x + 3y = 12. If the price of good x is ₦2 and the price of good y is ₦3, what is the consumer's optimal bundle of goods?
Question 9
A firm is producing at a point where its Marginal Cost (MC) curve intersects the Marginal Revenue (MR) curve. What is the nature of the market structure?
Question 10
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 0.5, what is the percentage change in quantity demanded when the price increases by 10%?
Question 11
A firm is considering investing in a new project. The project requires an initial investment of ₦100,000 and is expected to generate a revenue of ₦120,000 per year for 5 years. The firm's \cost of capital is 10% per year. What is the net present value (NPV) of the project?
Question 12
A monopolist is facing a demand curve with the following equation: P = 100 - 2Q. If the firm's marginal \cost (MC) is ₦20, what is the profit-maximizing quantity of the product?
Question 13
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor, and K is capital. If the firm's labor and capital are increased by 20% and 15% respectively, what is the percentage change in output?
Question 14
A firm is producing a product with a total revenue (TR) of ₦1,000,000 and a total \cost (TC) of ₦800,000. If the firm's profit-maximizing output is 100 units, what is the opportunity \cost of producing one more unit of the product?
Question 15
A firm's \cost function is given by C = 100 + 2L + 3K, where C is \cost, L is labor, and K is capital. If the firm's labor and capital are increased by 20% and 15% respectively, what is the percentage change in \cost?
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