POST UTME OAU 2022 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm is considering two different production processes to produce a certain good. Process A requires an initial investment of ₦100,000 and has a variable \cost of ₦50 per unit. Process B requires an initial investment of ₦150,000 and has a variable \cost of ₦30 per unit. If the firm produces 10,000 units of the good, what is the elasticity of demand for each process?
Question 2
A monopolist faces a demand curve given by Q = 100 - 2P. If the firm's marginal \cost is MC = 10, find the profit-maximizing price and quantity.
Question 3
A firm's production function is given by Q = 10L^0.5K^0.5, where L is labor and K is capital. If the firm's marginal product of labor (MPL) is given by MPL = 5L^{-0.5}K^{0.5}, what is the firm's MPL when L = 100 and K = 100?
Question 4
A consumer has an indifference curve given by U = 2X + 3Y, where U is the utility, X is the quantity of good X, and Y is the quantity of good Y. The budget constraint is given by 2X + 3Y = 12. What is the consumer's optimal bundle?
Question 5
A country's GDP is given by the equation Y = C + I + G, where Y is the GDP, C is the consumption, I is the investment, and G is the government sp\ending. If the consumption function is given by C = 100 + 0.8Y, the investment function is given by I = 20 + 0.2Y, and the government sp\ending is given by G = 50, what is the country's GDP?
Question 6
A government imposes a tax on a firm's output, increa\sing its \cost by 15%. If the firm's demand function is given by P = 100 - 2Q and its supply function is given by P = 20 + 3Q, what is the new equilibrium price and quantity?
Question 7
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 marginal \cost (MC) of each firm is cons\tant at 10, what is the equilibrium price and quantity?
Question 8
A country's GDP is given by GDP = 100 + 20Y - 5Y^2, where Y is the country's income. If the country's GNP is given by GNP = 120 + 30Y - 10Y^2, what is the country's GDP-GNP gap?
Question 9
Consider a country that imports 60% of its coffee and exports 70% of its cocoa. If the country's coffee imports increase by 15% and cocoa exports decrease by 10%, what is the new balance of trade?
Question 10
A firm is a pure monopolist with a demand function given by Q = 100 - 2P. If the firm's marginal \cost is 10, find the firm's optimal price and quantity.
Question 11
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, find the consumer's optimal bundle.
Question 12
The government of Nigeria has introduced a new policy to increase the production of rice in the country. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing the availability of fertilizers. However, the policy has been criticized for being too expensive and for potentially harming the environment. Which of the following is a potential benefit of the policy?
Question 13
A firm's total revenue (TR) is given by TR = 100Q - 2Q^2. If the firm's total \cost (TC) is given by TC = 50Q + 10Q^2, what is the firm's profit-maximizing quantity?
Question 14
A firm's demand function is given by Q = 100 - 2P and its supply function is given by Q = 20 + 3P. If the firm's fixed \cost is ₦500 and its variable \cost is ₦10 per unit, what is the firm's profit-maximizing price and quantity?
Question 15
The demand for a commodity is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the commodity is given by the equation Qs = 2P - 100, where Qs is the quantity supplied and P is the price. If the equilibrium price is 50, what is the equilibrium quantity?
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