POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2024 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
Consider a small open economy with a trade balance of -$100 million and a capital account surplus of $50 million. If the exchange rate is currently 1 USD = 1.5 NGN, what is the new exchange rate after the balance of payments adjustment?
Question 2
A firm's demand curve is given by Q = 100 - 2P, where Q 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 3
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^\( 1/2 \)H^\( 1/2 \). If the firm's current input prices are w_L = 10 and w_H = 20, and the current output price is p = 50, calculate the firm's optimal input bundle (L, H) u\sing the Lagrange method. What is the value of the Lagrange multiplier?
Question 4
Consider a firm with a production function Q = 2L^\( 1/2 \)H^\( 1/2 \). If the firm's current input prices are w_L = 10 and w_H = 20, and the current output price is p = 50, calculate the firm's optimal input bundle (L, H) u\sing the Lagrange method. What is the value of the Lagrange multiplier?
Question 5
A firm's revenue function is given by R = 100x - 2x^2, where R is revenue and x is output. If the firm's output is increased by 20%, what is the percentage change in revenue?
Question 6
Consider a firm operating in a perfectly competitive market with a production function given by Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦200, and the current output price is p = ₦500, calculate the firm's maximum profit.
Question 7
A firm is producing a good with a production function \( Q = 10K^0.5L^0.5 \), where (Q) is the output, (K) is the capital, and (L) is the labor. If the firm is currently producing at a point where \( K = 4 \) and \( L = 9 \), what is the marginal product of capital?
Question 8
A government imposes a tax on a firm's output, cau\sing the firm's supply curve to shift to the left. If the firm's original supply curve was Q = 100 + 2P and the tax is $5 per unit, what is the new supply curve?
Question 9
A government plans to implement a new tax policy to reduce income inequality. The tax rate is set at 20% for income up to ₦500,000 and 30% for income above ₦500,000. If a person has an income of ₦750,000, calculate the amount of tax they will pay.
Question 10
A consumer's utility function is given by U = 2x + 3y, 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 11
A country's GDP is $100 billion, and its GNP is $120 billion. What is the country's net factor income from abroad?
Question 12
A country's balance of payments account is given by the following equation: BOP = \( X - M \) + \( F - I \), where BOP is the balance of payments, X is exports, M is imports, F is foreign investment, and I is domestic investment. If the country's exports are $100 billion, imports are $120 billion, foreign investment is $50 billion, and domestic investment is $30 billion, what is the balance of payments?
Question 13
A country's demand for a good is given by the equation Qd = 100 - 2P, where P is the price of the good. If the price of the good is $20, what is the quantity demanded?
Question 14
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 inputs are increased by 20% and 15% respectively, what is the percentage change in \cost?
Question 15
A country's balance of payments is given by the equation BOP = X - M, where X is the value of exports and M is the value of imports. If the value of exports is ₦100 billion and the value of imports is ₦120 billion, what is the balance of payments?
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