POST UTME MADONNA UNIVERSITY 2019 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A monopolist firm faces a demand curve given by Q = 100 - 2P. The firm's total revenue (TR) function is given by TR = P * Q. Find the price elasticity of demand when the price is ₦50.
Question 2
The Central Bank of Nigeria (CBN) has a monetary policy of increa\sing the money supply by 10% per annum. If the current money supply is ₦100 billion, what will be the money supply after 5 years?
Question 3
A firm produces two goods, x and y, u\sing two inputs, labor (L) and capital (K). The production function is given by x = 2L^0.5K^0.5 and y = L^0.5K^0.5. If the firm has 100 units of labor and 200 units of capital, what is the total output of the firm?
Question 4
A firm's \cost function is given by C(Q) = 2Q^2 + 10Q. If the firm produces 10 units of output, what is its total \cost?
Question 5
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is given by 2x + 3y = 12, and the prices of the two goods are $2 and $3 respectively, what is the consumer's optimal consumption bundle?
Question 6
Suppose a firm is operating in a perfectly competitive market with a downward-sloping demand curve. If the firm increases its output from 100 units to 120 units, and the price falls from ₦100 to ₦90, what is the price elasticity of demand?
Question 7
A firm's revenue function is given by R = 2x + 3x^2, where R is revenue and x is the quantity sold. If the firm sells 10 units, what is its revenue?
Question 8
A country's GDP is given by the equation: GDP = C + I + G + \( X - M \). If the country's consumption function is C = 100 + 0.8Y, its investment function is I = 50 + 0.2Y, its government sp\ending function is G = 200, its export function is X = 500, and its import function is M = 300, what is the country's GDP?
Question 9
The following diagram shows the supply and demand curves for a particular good. If the price of the good is ₦100, how many units of the good will be sold?
Question 10
The Marshall-Lerner condition states that if the sum of the elasticities of demand for exports and imports is greater than 1, then a devaluation of the currency will lead to an improvement in the balance of payments. Which of the following statements is a correct interpretation of this condition?
Question 11
A consumer has the following utility function: U(x, y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle?
Question 12
A firm is operating under cons\tant returns to scale. If it increases its output by 10%, what will be the percentage change in its total \cost?
Question 13
A monopolist faces a demand curve with the following equation: Q = 100 - 2P. If the firm's marginal revenue function is MR = 50 - 2Q, what is the firm's optimal price?
Question 14
A firm has a production function given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor and K is the capital. If the price of labor is 10 and the price of capital is 20, and the firm wants to maximize its profit, what is the optimal level of labor?
Question 15
A country's GDP is ₦100 billion and its GNP is ₦120 billion. What is the net factor income from abroad?
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.
Unlock Full Access
Available for Android & Windows