POST UTME MOUNTAIN TOP UNIVERSITY 2021 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A farmer in Nigeria produces wheat, which is used to make bread. The production function for wheat is given by Q = 1000L^\( 1/2 \)K^\( 1/2 \), where Q is the quantity of wheat produced, L is the amount of labor used, and K is the amount of capital used. If the farmer uses 100 units of labor and 200 units of capital, calculate the quantity of wheat produced.
Question 2
The government of Nigeria has introduced a new policy to increase the production of wheat. The policy involves a 20% increase in the price of wheat. Assuming the demand for wheat is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price, and the initial price is ₦100, calculate the new quantity demanded.
Question 3
The government of Nigeria has introduced a new tax on luxury goods to raise revenue. What is the likely effect of this tax on the demand for luxury goods?
Question 4
A country's balance of payments is given by the following table:\n| Category | Exports | Imports |\n| --- | --- | --- |\n| Goods | ₦1000 | ₦800 |\n| Services | ₦500 | ₦300 |\n| Transfer | ₦200 | ₦100 |\nWhat is the country's balance of trade?
Question 5
A firm in Nigeria produces a product u\sing labor and capital. The production function for the product is given by Q = 1000L^\( 1/2 \)K^\( 1/2 \), where Q is the quantity produced, L is the amount of labor used, and K is the amount of capital used. If the firm uses 100 units of labor and 200 units of capital, calculate the marginal product of labor.
Question 6
A firm's \cost function is given by C = 100 + 2Q + 0.5Q^2. If the firm's current output (Q) is 10 units, what is the firm's total \cost (TC) in terms of $?
Question 7
The elasticity of demand for a product is measured by the percentage change in the quantity demanded in response to a 1% change in the price of the product. If the demand for a product is elastic, what can be inferred about the price elasticity of demand?
Question 8
A firm is considering the introduction of a new product. The firm's \cost function is given by C(q) = 2q^2 + 10q + 100, where q is the quantity produced. What is the marginal \cost function?
Question 9
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the price of the good is $10 and the wage rate is $5 per unit of labor, what is the optimal level of labor to hire?
Question 10
A consumer's utility function is given by U = 2x + 3y. If the consumer's income is $100 and the prices of x and y are $5 and $10 respectively, what is the optimal bundle of x and y?
Question 11
A firm's demand function is given by \( Q = 100 - 2P \). If the firm's marginal \cost is ₦20, what is the profit-maximizing price?
Question 12
A firm's production function is given by Q = 2L^0.5H^0.5. If the firm's current labor and capital inputs are L = 16 and H = 9, respectively, what is the marginal product of labor (MPL) when the firm is producing at the given inputs?
Question 13
A country's balance of payments is given by the following equation: BOP = X - M. If the country's exports are $100 billion and its imports are $80 billion, what is the balance of payments?
Question 14
The central bank of Nigeria has increased the reserve requirement for commercial banks. What is the likely effect of this policy on the money supply?
Question 15
A country's GDP is $100 billion, and its government decides to implement a 10% tax on all goods and services. What is the new GDP?
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