POST UTME OSUSTECH 2018 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
Consider a country with a trade balance of $100 million and a current account surplus of $50 million. If the country's exchange rate is currently 1 USD = 100 Naira, find the value of the Naira in terms of the USD.
Question 2
A central bank increases the money supply by 10%. What will happen to the price level?
Question 3
A monopolistically competitive firm faces a demand curve with the equation \( p = 100 - 2q \). If the firm's marginal \cost is \( MC = 20 \), and the firm is currently producing \( q = 20 \) units, what is the firm's profit-maximizing price?
Question 4
A government wants to reduce inflation by reducing aggregate demand. If the government reduces government sp\ending by $10 billion and increases taxes by $5 billion, what is the total reduction in aggregate demand?
Question 5
Consider a country with a trade balance of $100 million and a current account surplus of $50 million. If the country's exchange rate is currently 1 USD = 100 Naira, find the value of the Naira in terms of the USD.
Question 6
A firm is considering increa\sing its production of a good, but it is concerned about the potential increase in its \costs. U\sing the concept of returns to scale, explain why the firm might choose to increase production, even if it means increa\sing its \costs.
Question 7
A firm's \cost function is given by C(L,K) = 2L^2 + 3K^2, where C is the \cost, L is the labor, and K is the capital. If the firm's output is 100 units, find the labor and capital required.
Question 8
A monopolist faces a demand curve given by P = 100 - 2Q, where P is price and Q is quantity. If the marginal \cost is ₦50, what is the optimal quantity produced?
Question 9
A firm has a production function Q = 2L^0.5K^0.5, where L and K are labor and capital respectively. If the firm's \cost function is given by C(L, K) = 2L + 3K, find the optimal values of L and K u\sing the method of Lagrange multipliers.
Question 10
A country's balance of payments is in equilibrium when its current account is equal to its capital account. If the country's current account surplus is $100 million and its capital account deficit is $50 million, what is the net effect on the country's balance of payments?
Question 11
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor, and K is capital. If the firm wants to increase its output by 20% while keeping labor cons\tant at 16 units, what percentage increase in capital is required?
Question 12
A monopolist faces a demand curve given by P = 100 - 2Q, where P is price and Q is quantity. If the marginal \cost is ₦50, what is the optimal quantity produced?
Question 13
A consumer's utility function is given by u(x,y) = 2x + 3y, where x is the quantity of good x and y is the quantity of good y. If the consumer's income is ₦1200 and the price of good x is ₦4, find the consumer's optimal bundle of goods x and y.
Question 14
A firm has a production function given by Q = 100K^\( 1/2 \)L^\( 1/2 \), where Q is output, K is capital, and L is labor. If the marginal product of labor is 20, and the wage rate is ₦200 per unit of labor, what is the optimal level of labor?
Question 15
A consumer's indifference curve is given by the equation u(x,y) = 2x + 3y = 12. If the consumer's income is ₦1200 and the price of good x is ₦4, find the consumer's optimal bundle of goods x and y.
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