POST UTME REDEEMERS UNIVERSITY 2021 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm's revenue function is given by the equation \( R = 100Q - 2Q^2 \), where (R) is the revenue and (Q) is the output. If the output is 50 units, find the revenue.
Question 2
A firm's \cost function is given by C(x) = 2x^2 + 10x + 5, where C(x) is the total \cost and x is the number of units produced. If the firm produces 20 units, find the marginal \cost.
Question 3
The government of Nigeria has introduced a new tax policy aimed at increa\sing revenue from the agricultural sector. The policy involves a 10% tax on all agricultural products sold in the market. U\sing the concept of elasticity of demand, determine the likely effect of this policy on the price of yam, a staple crop in Nigeria.
Question 4
A firm has a production function Q = 3L^0.5K^0.5. If the price of the good is $15 and the wage rate is $6 per unit of labor, what is the optimal level of labor (L) that the firm should hire?
Question 5
The concept of returns to scale in production theory implies that as the level of output increases, the marginal product of labor also increases, but at a decrea\sing rate. Which of the following statements best describes the relationship between the marginal product of labor and the level of output?
Question 6
A consumer's indifference curve is represented by the equation U = 3x + 2y, where U is the utility level and x and y are the quantities of two goods. If the consumer's income is ₦1,500,000 and the prices of the two goods are ₦750 and ₦500 respectively, what is the consumer's optimal bundle of goods?
Question 7
A country's GDP is given by the equation \( GDP = C + I + G + \( X - M \ \)), where (GDP) is the GDP, (C) is the consumption, (I) is the investment, (G) is the government sp\ending, (X) is the export, and (M) is the import. If the consumption is ₦100 billion, the investment is ₦50 billion, the government sp\ending is ₦20 billion, the export is ₦100 billion, and the import is ₦80 billion, find the GDP.
Question 8
A firm is considering investing in a new project that has a net present value (NPV) of ₦1,500,000. If the firm's \cost of capital is 10% per annum, what is the present value of the expected future cash flows from the project?
Question 9
A monopolist faces a demand curve given by Q = 100 - 2P, where Q is quantity and P is price. If the firm's marginal revenue is given by MR = 200 - 4Q, what is the firm's optimal price?
Question 10
A firm's production function is given by Q = 2L + 3K, where Q is the quantity produced, L is the number of labor units, and K is the number of capital units. If the firm uses 10 labor units and 5 capital units, what is the quantity produced?
Question 11
Consider a firm operating under cons\tant returns to scale. If the firm's production function is given by Q = 2L^2 + 3K, where Q is output, L is labor, and K is capital, what is the long-run equilibrium output if the firm's labor and capital are doubled?
Question 12
The supply of a product is given by the equation Qs = 50 + 2P, where Qs is the quantity supplied and P is the price. If the price elasticity of supply is 2, find the price at which the quantity supplied is 80.
Question 13
A perfectly competitive firm faces a market demand curve with a price elasticity of -3. If the firm increases its price by 5%, what is the percentage change in quantity demanded?
Question 14
A farmer in Nigeria has 100 hectares of land to cultivate maize. The opportunity \cost of cultivating maize is ₦50,000 per hectare. If the farmer wants to cultivate maize on 50 hectares, what is the total opportunity \cost?
Question 15
A firm's production function is given by the equation \( Q = 100K^0.5L^0.5 \), where (Q) is the output, (K) is the capital, and (L) is the labor. If the capital is ₦100 million and the labor is 100 workers, find the output.
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