POST UTME UNIOSUN 2020 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A monopolist faces a market demand curve with the following equation: Qd = 100 - 2P. The monopolist's marginal \cost curve is MC = 10. What is the profit-maximizing price and quantity?
Question 2
A firm's production function is given by the equation Q = 2L^2 + 3K, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm wants to produce 20 units of output, how many units of capital are required?
Question 3
A firm is considering two production techno\logies: one with a cons\tant returns to scale (CRS) and another with a decrea\sing returns to scale (DRS). Which techno\logy is more likely to be adopted in a market with a large number of firms?
Question 4
The government of Nigeria has introduced a new tax policy to increase revenue. The policy includes a 10% increase in the value-added tax (VAT) and a 5% increase in the income tax rate. What is the likely effect of this policy on the aggregate demand curve?
Question 5
A consumer's indifference curve is given by the equation u(x, y) = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦24, what is the maximum amount that can be spent on good y?
Question 6
A firm faces a demand curve given by P = 100 - 2Q. The marginal revenue function is given by MR = 100 - 4Q. If the firm's marginal \cost is MC = 20, what is the optimal quantity to produce?
Question 7
A firm faces a demand curve given by P = 50 + 2Q. The marginal revenue function is given by MR = 50 + 4Q. If the firm's marginal \cost is MC = 30, what is the optimal price to charge?
Question 8
The demand for a commodity is said to be elastic if a small change in the price of the commodity leads to a large change in the quantity demanded. Which of the following is a characteristic of an elastic demand?
Question 9
A firm's production function is given by Q = 3L^0.5K^0.5, where Q is output, L is labor and K is capital. If the price of labor is ₦150 per unit and the price of capital is ₦300 per unit, and if the firm's budget constraint is 150L + 300K = 1500, determine the optimal values of L and K.
Question 10
A firm's supply function is given by Q = 50 + 2P, where Q is output and P is price. If the price of output is ₦50 per unit, determine the quantity supplied.
Question 11
A country's GDP is given by the equation Y = C + I + G + \( X - M \). If the country's consumption is 100, investment is 50, government sp\ending is 75, exports are 150, and imports are 100, what is the country's GDP?
Question 12
A firm faces a demand curve given by P = 50 + 2Q. The marginal revenue function is given by MR = 50 + 4Q. If the firm's marginal \cost is MC = 30, what is the optimal quantity to produce?
Question 13
A country's balance of payments is given by the equation BOP = X - M + \( F - I \). If the country's exports are 200, imports are 150, foreign investment is 50, and domestic investment is 75, what is the country's balance of payments?
Question 14
A firm is producing a good with the following \cost function: C = 100 + 2L + 3K. If the price of labor is $10 per unit and the price of capital is $20 per unit, and the firm is currently producing 100 units of output, what is the total \cost of production?
Question 15
A firm operating in a perfectly competitive market produces two goods, A and B. The production function for good A is given by Q_A = 10L^0.5H^0.5, where L and H are the inputs of labor and capital, respectively. The production function for good B is given by Q_B = 5L^0.2H^0.8. If the firm's objective is to maximize profits, which of the following statements is true?
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