POST UTME NILE UNIVERSITY 2024 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A monopolistically competitive firm faces a demand curve given by \( Q = 100 - 2P \). The firm's marginal \cost curve is given by \( MC = 10 + 2Q \). Assuming the firm is currently producing 20 units, calculate the firm's profit-maximizing price and quantity.
Question 2
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is given by Qd = 100 - 2P and the supply curve is given by Qs = 20 + 3P, find the equilibrium price and quantity. Assume that the firms are price-takers and that the market is in equilibrium.
Question 3
Suppose a country's GDP grows at an annual rate of 5% while its population grows at an annual rate of 2%. If the initial GDP per capita is ₦100,000, what is the GDP per capita after 10 years?
Question 4
Consider a country with a fixed exchange rate and a trade deficit. The country's import demand function is given by \( MD = 100 - 2P \), where ( P ) is the price of imports in domestic currency. The country's export supply function is given by \( ES = 50 + 3P \). Assuming the initial price of imports is 50, calculate the initial trade deficit and the change in trade deficit if the price of imports increases by 10.
Question 5
A consumer's utility function is given by U = 2x + 3y. The prices of x and y are ₦50 and ₦75 respectively. Find the consumer's optimal bundle.
Question 6
A country's balance of payments is given by the following equation: BOP = X - M - \( I - S \), where BOP is the balance of payments, X is exports, M is imports, I is investment, and S is savings. If the country has exports of ₦100, imports of ₦80, investment of ₦50, and savings of ₦30, what is the balance of payments?
Question 7
A firm's total revenue is given by R(q) = 20q. If the firm's total \cost is C(q) = 2q^2 + 5q + 10, find the firm's profit-maximizing quantity of output.
Question 8
A firm is considering two investment projects. Project A has a net present value (NPV) of ₦1,000,000 and a payback period of 5 years. Project B has an NPV of ₦800,000 and a payback period of 4 years. Which project should the firm choose?
Question 9
A firm's demand curve is given by P = 100 - 2q. The firm's marginal \cost is MC(q) = 10 + 2q. Find the firm's profit-maximizing quantity of output.
Question 10
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. If the firm's profit-maximizing output is 20 units, what is the price elasticity of demand at this output level?
Question 11
A firm's \cost function is given by C(q) = 2q^2 + 5q + 10. If the firm's revenue function is R(q) = 20q, find the profit-maximizing quantity of output.
Question 12
A firm produces two goods, A and B, u\sing two inputs, labor (L) and capital (K). The production functions are given by A = 2L + 3K and B = 4L + 2K. If the firm's objective is to maximize profit, subject to the constraint that the total output of good A is 10 units, what is the optimal level of labor?
Question 13
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing price and quantity.
Question 14
A country with a fixed exchange rate has a trade deficit of ₦1000. The country's import demand function is given by \( MD = 100 - 2P \), where ( P ) is the price of imports in domestic currency. The country's export supply function is given by \( ES = 50 + 3P \). Assuming the initial price of imports is 50, calculate the change in trade deficit if the price of imports increases by 10.
Question 15
A firm's supply curve is given by the equation Qs = 2P - 100, where Qs is the quantity supplied and P is the price. If the price is increased by 20%, what is the new quantity supplied?
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