POST UTME PAN-ATLANTIC UNIVERSITY 2021 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A consumer's utility function is given by ( U(x,y) = 2x + 3y ), where ( x ) and ( y ) are the quantities of two goods consumed. If the prices of the two goods are ₦5 and ₦3 respectively, and the consumer's income is ₦100, find the optimal quantities of the two goods.
Question 2
A firm's \cost function is given by the equation \( C = 100 + 2L \), where ( C ) is the \cost and ( L ) is the labor. If the firm's fixed \cost is ₦50,000, and the wage rate is ₦10,000 per hour, find the firm's total revenue and total \cost.
Question 3
A country's national income is given by the equation \( Y = C + I + G \), where ( Y ) is the national income, ( C ) is the consumption, ( I ) is the investment, and ( G ) is the government exp\enditure. If the consumption is ₦500 billion, the investment is ₦200 billion, and the government exp\enditure is ₦300 billion, find the national income.
Question 4
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 10Q + 100. What is the profit-maximizing price and quantity?
Question 5
A country's GDP is ₦1,000,000,000,000 and its GNP is ₦1,100,000,000,000. What is the net factor income from abroad?
Question 6
The GDP of a country is given by the equation \( GDP = C + I + G + \( X - M \ \) ), where ( C ) is the consumption, ( I ) is the investment, ( G ) is the government exp\enditure, ( X ) is the export, and ( M ) is the import. If the consumption is ₦500 billion, the investment is ₦200 billion, the government exp\enditure is ₦300 billion, the export is ₦400 billion, and the import is ₦200 billion, find the GDP.
Question 7
The government of a country wants to increase the production of a certain good. To achieve this, it decides to increase the price of the good by 10%. If the demand for the good is given by the equation Qd = 100 - 2P, what is the new price of the good?
Question 8
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. What is the profit-maximizing price and quantity?
Question 9
A firm has a production function F(L, K) = L^0.4 K^0.6. If the wage rate is ₦100 per hour and the rental rate of capital is ₦200 per hour, what is the value of the marginal product of capital?
Question 10
A firm is considering two different production processes. Process A \costs ₦100 per unit and Process B \costs ₦120 per unit. If the firm produces 100 units, what is the total \cost of production?
Question 11
A country's GDP is $100 billion, and its GNP is $120 billion. What is the value of the country's net factor income from abroad?
Question 12
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, what is the \cost-minimizing combination of labor and capital?
Question 13
A firm is producing two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production function for good X is given by QX = 10L^0.5K^0.5, and the production function for good Y is given by QY = 5L^0.2K^0.8. If the firm has 100 units of labor and 50 units of capital, what is the marginal product of labor for good X?
Question 14
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is -2, what is the percentage change in quantity demanded when the price increases by 10%?
Question 15
A central bank increases the money supply by 10%. If the velocity of money is 2, what is the percentage change in the price level?
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