POST UTME OAU 2025 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A monopolist is producing a good u\sing a production function of the form Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, find the optimal combination of labor and capital that maximizes the monopolist's profit.
Question 2
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will happen to its marginal revenue?
Question 3
A consumer has the following utility function: U(x, y) = 2x + 3y. The prices of x and y are $2 and $3, respectively. What is the consumer's budget constraint?
Question 4
A country's budget is given by the equation B = R - T, where B is the budget, R is revenue, and T is tax. If the country's revenue is ₦10 trillion and tax is ₦2 trillion, find the country's budget.
Question 5
A firm's \cost function is given by C = 2Q^2 + 10Q. The revenue function is given by R = 20Q. What is the profit-maximizing quantity?
Question 6
A country's balance of payments is in equilibrium when its current account is equal to its capital account. What is the name of this equilibrium?
Question 7
A firm is producing a good u\sing a production function of the form Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, find the optimal combination of labor and capital that minimizes the \cost of production.
Question 8
Consider a country with a mixed economy, where the government intervenes in the market to correct market failures. The government imposes a tax on a particular good to reduce its consumption. However, the tax revenue is not used to reduce the price of the good. Instead, it is used to fund a different public project. What is the effect of this tax on the equilibrium price and quantity of the good in the market?
Question 9
Determine the equilibrium price and quantity of a commodity in a market where the demand function is given by Qd = 100 - 2P and the supply function is given by Qs = 2P - 10, where P is the price in naira.
Question 10
A monopolist is producing a good u\sing a production function of the form Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, find the optimal combination of labor and capital that maximizes the monopolist's profit.
Question 11
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 P = 10, and the firm's \cost function is C(L,K) = 2L + 3K, what is the optimal level of labor (L) and capital (K) to maximize profits?
Question 12
A firm is considering investing in a new project with a required rate of return of 12%. The project has a net present value (NPV) of -100,000. What is the present value of the expected future cash flows?
Question 13
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where L is labor and K is capital. If the firm's current labor and capital inputs are 16 and 9 respectively, what is the marginal product of labor (MPL) at this point?
Question 14
A firm is producing a good u\sing a production function of the form Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, find the optimal combination of labor and capital that minimizes the \cost of production.
Question 15
A firm is producing a good with the following production function: q = 2L^0.5K^0.5. The firm is facing a labor market with a wage rate of $10 per hour and a capital market with a rental rate of $5 per hour. What is the firm's \cost-minimizing input combination?
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