POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2023 Economics | Objective
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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 L = 16 and K = 9, respectively, what is the marginal product of labor (MPL) when the firm is producing at the point where L = 16 and K = 9?
Question 2
A country's agricultural sector is characterized by a high degree of monopolistic competition. What is the likely effect of an increase in the price of a key input on the industry's supply curve?
Question 3
A firm is considering two different production processes to manufacture a product. Process A requires an initial investment of ₦10 million and has a variable \cost of ₦5 per unit. Process B requires an initial investment of ₦15 million and has a variable \cost of ₦3 per unit. If the firm produces 10,000 units, what is the total \cost of production for each process?
Question 4
A firm is considering two different production processes to manufacture a product. Process A requires an initial investment of ₦10 million and has a variable \cost of ₦5 per unit. Process B requires an initial investment of ₦15 million and has a variable \cost of ₦3 per unit. If the firm produces 10,000 units, what is the total revenue for each process?
Question 5
A firm's production function is given by Q = 2L^2 + 3K. The firm's \cost function is C(L, K) = 2L + 3K. Find the firm's optimal input bundle of L and K.
Question 6
A country's balance of payments is in equilibrium when the current account is equal to the capital account. True or False?
Question 7
A country's GDP is ₦10 trillion, and its GNP is ₦11 trillion. What is the net factor income from abroad?
Question 8
A consumer's utility function is given by U(x, y) = 2x + 3y. The consumer's budget constraint is 2x + 3y = 12. Find the consumer's optimal bundle of x and y.
Question 9
A firm's production function is given by Q = 2L^2 + 3K. The firm's \cost function is C(L, K) = 2L + 3K. Find the firm's optimal input bundle of L and K.
Question 10
A government is considering implementing a tax on a particular good. The government's revenue from the tax is given by R = tQ, where t is the tax rate and Q is the quantity of the good sold. If the government's current revenue from the tax is R = 100, and the tax rate is t = 0.1, what is the quantity of the good sold?
Question 11
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is D(p) = 100 - 2p and the marginal \cost (MC) of each firm is cons\tant at ₦10, what is the equilibrium price and quantity?
Question 12
A country's government imposes a tax on a good, cau\sing the supply curve to shift from S1 to S2. The demand curve remains unchanged. Find the new equilibrium price and quantity.
Question 13
A firm's production function is given by \( Q = 2K^{0.5}L^{0.5} \). What is the return to scale when K = 4 and L = 4?
Question 14
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the marginal product of capital (MPK) when the firm is producing at the point where L = 16 and K = 9?
Question 15
A consumer's budget constraint is given by P1X + P2Y = I, where P1 and P2 are the prices of goods X and Y, respectively, and I is the consumer's income. If the consumer's income is I = 100, and the prices of goods X and Y are P1 = 5 and P2 = 10, respectively, what is the consumer's indifference curve when the consumer is consuming 20 units of good Y?
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