POST UTME IGBINEDION UNIVERSITY 2022 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
The following table shows the data for a particular industry in Nigeria. If the industry is currently producing 100 units of output, then the total product of labor is
Question 2
The following diagram shows the supply and demand curves for a particular good. If the price of the good is currently ₦50, then the equilibrium quantity is
Question 3
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 100 units of output, then the opportunity \cost of one more unit of labor is
Question 4
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will happen to its revenue?
Question 5
A farmer in Nigeria has 100 hectares of land to cultivate crops. The opportunity \cost of cultivating maize is ₦50,000 per hectare, while the opportunity \cost of cultivating yams is ₦60,000 per hectare. If the farmer wants to maximize profits, how many hectares of land should be allocated to maize?
Question 6
A consumer is faced with a budget constraint of ₦1000 and a price of ₦200 per unit of a good. The consumer's utility function is given by U(x) = 2x^2, where x is the number of units consumed. What is the consumer's optimal consumption level?
Question 7
The following diagram shows the production function for a particular firm. If the firm is currently producing 100 units of output, then the marginal product of labor is
Question 8
A monopolist faces a demand curve given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the monopolist's marginal revenue is $20 and the price elasticity of demand is -2, what is the monopolist's optimal price?
Question 9
The opportunity \cost of producing one more unit of a good is the value of the next best alternative that must be given up. This concept is closely related to the law of increa\sing opportunity \cost, which states that as the production of a good increases, the opportunity \cost of producing one more unit also increases. What is the opportunity \cost of producing one more unit of a good when the law of increa\sing opportunity \cost is in effect?
Question 10
A firm is producing a good u\sing a production function \( Q = 2L^2 + 3K \). If the firm's current inputs are L = 5 and K = 10, what is the firm's current output?
Question 11
A firm's production function is given by Q = 2L + 3K. The firm's \cost function is C(L, K) = 2L + 3K. Find the firm's profit-maximizing level of labor and capital.
Question 12
A country is experiencing a recession, and the government decides to implement a fiscal policy to stimulate economic growth. The government increases government sp\ending and cuts taxes to boost aggregate demand. What is the effect of this fiscal policy on the opportunity \cost of producing one more unit of a good?
Question 13
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 ₦10 respectively, what is the consumer's optimal bundle?
Question 14
The Central Bank of Nigeria has increased the reserve requirement for commercial banks from 10% to 15%. This will lead to a decrease in the money supply in the economy. What is the effect of this policy on the interest rate?
Question 15
A consumer's utility function is given by U(x, y) = 2x + 3y. The budget constraint is 2x + 3y = 12. Find the consumer's optimal bundle of x and y.
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