POST UTME MOUNTAIN TOP UNIVERSITY 2017 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
The production function for a firm is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is the output, L is the labor and K is the capital. If the firm's labor and capital are 4 and 9 respectively, find the output.
Question 2
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the product is given by the equation Qs = 2P - 50, where Qs is the quantity supplied. What is the equilibrium price and quantity?
Question 3
A firm's production function is given by Q = 2L^2, where L is the labor input. If the firm's wage rate is ₦50 per hour, what is the optimal labor input?
Question 4
Consider a firm operating 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?
Question 5
A firm's production function is given by Q = 2L^2 + 3K, where Q is the output, L is the labor and K is the capital. If the firm wants to produce 100 units of output, how much labor and capital should it hire?
Question 6
A farmer in Nigeria is considering two different farming techniques: traditional and modern. The traditional technique requires an initial investment of ₦50,000 and yields a profit of ₦20,000 per hectare. The modern technique requires an initial investment of ₦100,000 and yields a profit of ₦40,000 per hectare. If the farmer has ₦150,000 to invest, which technique should he choose?
Question 7
A government is planning to implement a five-year development plan to achieve a 10% annual growth rate in GDP. If the initial GDP is ₦1,000 billion, what will be the GDP after five years?
Question 8
A consumer has an income of ₦1000 and faces a budget constraint given by P1x + P2y = 1000. If P1 = ₦200 and P2 = ₦300, what is the consumer's optimal bundle?
Question 9
A government imposes a tax of ₦10 on a firm's output. If the firm's supply curve is given by Q = 2P - 10, what is the new supply curve?
Question 10
A firm is operating in a perfectly competitive market with decrea\sing returns to scale. If the firm's production function is given by Q = 2L^2 + 3K, where Q is output, L is labor, and K is capital, what is the firm's marginal product of labor (MPL) when L = 5 and K = 3?
Question 11
A government in Nigeria imposes a tax on a particular good. The tax revenue collected is ₦100 million, and the deadweight loss is ₦50 million. What is the excess burden of the tax?
Question 12
A firm's production function is given by Q = 2L^2 + 3K, where Q is the output, L is the labor and K is the capital. If the firm wants to produce 100 units of output, how much labor and capital should it hire?
Question 13
The demand function for a product is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the supply function is given by Qs = 2P - 100, find the elasticity of demand.
Question 14
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \). If the country's exports (X) are $100 billion, imports (M) are $80 billion, foreign investment (F) is $20 billion, and domestic investment (I) is $15 billion, what is the balance of payments?
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 -2, what is the percentage change in quantity demanded when the price increases by 10%?
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