POST UTME KSU 2021 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
The government of Nigeria has introduced a new policy to promote agricultural development in the country. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing access to credit. However, the policy also includes a provision to impose a tax on agricultural products. Which of the following is a potential consequence of this policy?
Question 2
A monopolistically competitive firm is facing a decrease in demand for its product. The firm is considering two options: (1) reduce the price of its product, or (2) increase the quality of its product. Which of the following is a potential consequence of option (1)?
Question 3
A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production functions are given by X = 2L + 3K and Y = 4L + 2K. If the firm has 10 units of labor and 8 units of capital, what is the total output?
Question 4
A consumer's budget constraint is given by 5x + 10y = 100, where x and y are the quantities of two goods. If the consumer's utility function is U = 2x + 3y, what is the consumer's optimal bundle of goods?
Question 5
A country's balance of payments account shows a trade deficit of $10 billion. If the country's exchange rate is 1 USD = 1.5 NGN, what is the trade deficit in NGN?
Question 6
A government imposes a tax of ₦50 per unit on a good that is sold at a price of ₦200 per unit. If the demand for the good is given by Q = 100 - 2P, what is the new equilibrium price?
Question 7
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. If the monopolist produces 20 units, what is the elasticity of demand?
Question 8
A company is considering investing in a new project. The project has a fixed \cost of ₦1 million and a variable \cost of ₦500 per unit produced. If the selling price of the product is ₦1,500 per unit, and the company expects to sell 10,000 units, what is the company's profit?
Question 9
A firm's demand function is given by Q = 100 - 2P. If the firm's revenue is ₦1000, what is the price of the good?
Question 10
A firm's production function is given by Q = 2L + 3K, where Q is the output, L is the labor and K is the capital. If the firm uses 10 units of labor and 5 units of capital, what is the output?
Question 11
A consumer is faced with the following utility function: U(x, y) = 2x + 3y. 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 of x and y?
Question 12
A firm is considering two production methods: method A and method B. Method A \costs ₦1000 per unit and produces 1 unit of output, while method B \costs ₦500 per unit and produces 2 units of output. If the firm produces 3 units of output, what is the opportunity \cost of producing the third unit?
Question 13
A government's budget constraint is given by B = T + I. If the government's tax revenue is ₦500 billion and its interest payment is ₦200 billion, what is the budget deficit?
Question 14
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm produces 5 units of output, what is the total \cost?
Question 15
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%?
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