POST UTME REDEEMERS UNIVERSITY 2017 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A monopolist has a demand function given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the monopolist produces 20 units, what is the price?
Question 2
A consumer's utility function is given by U = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12 and the price of x is 2, what is the consumer's optimal consumption bundle?
Question 3
The production function for a firm is given by Q = 2L^0.5K^0.5, where Q is output, L is labor and K is capital. If the firm increases labor from 100 to 121 units and capital from 100 to 121 units, calculate the percentage change in output.
Question 4
A firm operating in a perfectly competitive market has a total revenue function given by TR = 100x - 2x^2, where x is the number of units sold. If the firm's marginal revenue is 50, what is the value of x?
Question 5
Suppose 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 cons\tant and equal to -2, what is the percentage change in quantity demanded when the price increases by 10%?
Question 6
A country's inflation rate is given by the equation π = \( P - P^\( -1 \ \))/\( P^\( -1 \ \)), where π is the inflation rate, P is the current price level, and P^\( -1 \) is the previous price level. If the current price level is 100 and the previous price level is 90, what is the inflation rate?
Question 7
A firm is producing a good u\sing a production function Q = 3L^0.5K^0.5, where Q is output, L is labor and K is capital. If the firm increases labor from 100 to 121 units and capital from 100 to 121 units, calculate the percentage change in output.
Question 8
The following diagram shows the supply and demand curves for a particular commodity. If the price of the commodity is currently at P1, what is the likely effect on the quantity supplied and quantity demanded?
Question 9
A firm has a total revenue function given by TR = 100x - 2x^2, where x is the number of units sold. If the firm sells 20 units, what is the marginal revenue?
Question 10
A consumer's indifference curve 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, what is the consumer's optimal bundle of x and y?
Question 11
A monopolist is producing a good with a demand curve given by Q = 100 - 2P. If the firm's marginal \cost is ₦20, what is the firm's optimal price?
Question 12
A diagram of a simple production function is shown below. If the firm is currently producing at point A, what is the marginal product of labor?
Question 13
The Nigerian government has implemented a policy to increase agricultural production by providing subsidies to farmers. However, the policy has led to a decrease in the production of industrial goods. What is the opportunity \cost of the government's policy?
Question 14
A firm is producing a good with a total revenue of ₦1000 and a total \cost of ₦800. If the firm's average revenue is ₦50, what is the firm's average \cost?
Question 15
The Nigerian economy is experiencing a recession, with a decline in the production of goods and services. The government has implemented a policy to stimulate economic growth by increa\sing government sp\ending. However, the policy has led to an increase in the budget deficit. What is the opportunity \cost of the government's policy?
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