POST UTME LASU 2023 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm operating in a perfectly competitive market produces two goods, A and B. The production of good A is characterized by increa\sing returns to scale, while the production of good B exhibits decrea\sing returns to scale. If the firm's \cost function is given by C(q) = 2q^2 + 5q + 10, where q is the total output, what is the firm's optimal output level for good A?
Question 2
A monopolist faces a demand curve given by P = 100 - 2Q. The marginal revenue function is MR = 50 - 2Q. What is the profit-maximizing quantity?
Question 3
A country's balance of payments 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 exports increase by 10% and imports decrease by 5%, what is the percentage change in the balance of payments?
Question 4
A country's GDP is given by \( GDP = C + I + G + \( X - M \ \) ). If the country's consumption is \( C = 100 \), investment is \( I = 50 \), government sp\ending is \( G = 20 \), exports are \( X = 30 \), and imports are \( M = 10 \), what is the country's GDP?
Question 5
A firm is producing a good with a total revenue of ₦1,500 and a total \cost of ₦1,200. If the price elasticity of demand is 0.5, what is the price elasticity of supply?
Question 6
A firm's production function is given by \( Q = 2L^{1/2}K^{1/2} \). If the firm's labor input is \( L = 4 \) and capital input is \( K = 9 \), what is the firm's output?
Question 7
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm wants to increase output by 20% while keeping labor cons\tant at 16 units, what percentage increase in capital is required?
Question 8
A monopolist is facing a demand curve given by Q = 100 - 2P. If the firm's marginal revenue is ₦50, what is its price?
Question 9
The demand function for a product is given by Qd = 150 - 3P, where Qd is the quantity demanded and P is the price. The supply function is given by Qs = 3P - 150. If the market is in equilibrium, what is the quantity demanded?
Question 10
A firm's production function is given by Q = 3L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm wants to increase output by 15% while keeping capital cons\tant at 9 units, what percentage increase in labor is required?
Question 11
The money market equilibrium is given by the equation: M = kPY, where M is the money supply, k is a cons\tant, P is the price level, and Y is real GDP. If the money supply increases from 100 to 120, and the price level increases from 2 to 3, what is the new equilibrium real GDP?
Question 12
A government is considering implementing a tax on a particular good. The demand curve for the good is given by Q = 100 - 2P, and the supply curve is given by Q = 20 + 2P. If the government wants to raise revenue of ₦1000, what is the optimal tax rate?
Question 13
A firm operating in a perfectly competitive market produces two goods, A and B. The production of good A is subject to increa\sing returns to scale, while the production of good B is subject to decrea\sing returns to scale. If the firm's production function for good A is given by Q_A = 2L^2 + 3K, and the production function for good B is given by Q_B = 4L - 2K, where L is labor and K is capital, what is the firm's optimal input combination?
Question 14
A government is considering implementing a new policy to reduce poverty. The policy involves providing a subsidy to a particular good. The demand for the good is given by Q_d = 100 - 2P, where Q_d is the quantity demanded and P is the price. The supply of the good is given by Q_s = 2P - 10, where Q_s is the quantity supplied. If the government wants to reduce poverty by increa\sing the quantity demanded of the good, what is the optimal subsidy?
Question 15
A firm operates in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will be the effect on the firm's output?
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