POST UTME KSU 2020 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
Consider a small open economy with a fixed exchange rate. The government imposes a tariff of 15% on imported goods. U\sing the Marshall-Lerner condition, determine whether the tariff will lead to a trade surplus or deficit.
Question 2
The money supply in an economy is given by M = 1000 + 2Y, where M is the money supply and Y is the national income. If the national income is ₦100 billion, find the money supply.
Question 3
A monopolist faces a demand curve given by Q = 100 - 2P and a marginal revenue curve given by MR = 20 - 2Q. If the firm's marginal \cost is cons\tant at $10, what is the profit-maximizing quantity?
Question 4
A firm is producing a good with the following production function: Q = 2L^0.5K^0.5. U\sing the concept of returns to scale, determine whether the firm is experiencing increa\sing, decrea\sing, or cons\tant returns to scale.
Question 5
A firm's demand curve is given by Q = 100 - 2P, and its marginal revenue curve is given by MR = 20 - 2Q. If the firm's marginal \cost is cons\tant at $10, what is the profit-maximizing price?
Question 6
Consider a firm operating in a perfectly competitive market. If the firm's average \cost curve intersects the demand curve at a point where the firm is producing at its optimal level of output, what is the implication for the firm's profit-maximizing price?
Question 7
A consumer has a budget constraint of ₦1,000 and a preference for two goods, A and B. The prices of A and B are ₦500 and ₦200 respectively. What is the consumer's optimal bundle of goods?
Question 8
A perfectly competitive market has a demand curve that is downward sloping and a supply curve that is upward sloping. If the market price is $10, and the demand curve is given by Q = 100 - 2P, and the supply curve is given by Q = 2P - 10, what is the equilibrium quantity?
Question 9
The concept of elasticity of demand refers to the responsiveness of the quantity demanded of a good to changes in its price. Which of the following is a characteristic of elastic demand?
Question 10
A government is considering implementing a policy to reduce income inequality. U\sing the concept of Lorenz curve, determine the Gini coefficient of income distribution in a country with the following income distribution: 20% of the population has an income of $10,000, 30% has an income of $20,000, 20% has an income of $30,000, and 30% has an income of $40,000.
Question 11
A monopolist faces a demand curve given by P = 100 - 2Q. The marginal \cost is cons\tant at ₦50. What is the profit-maximizing quantity?
Question 12
A country's balance of payments is given by the following equation: BOP = X - M - \( I - S \), where X is exports, M is imports, I is investment, and S is savings. If the country's exports are ₦100 billion, imports are ₦80 billion, investment is ₦50 billion, and savings are ₦30 billion, what is the balance of payments?
Question 13
A firm's production function is given by Q = 3L^0.5K^0.5, where L is labor and K is capital. If the firm increases labor by 25% and capital by 20%, what is the percentage change in output?
Question 14
A government imposes a tax of $5 on a good that is sold at a price of $20. If the demand curve is given by Q = 100 - 2P, and the supply curve is given by Q = 2P - 10, what is the new equilibrium quantity?
Question 15
A firm produces two goods, A and B. The production function for good A is given by Q_A = 2L^0.5 + 3K^0.5, where L is labor and K is capital. The production function for good B is given by Q_B = 4L^0.5 + 2K^0.5. If the firm has 100 units of labor and 50 units of capital, calculate the total output of the firm.
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