POST UTME VERITAS UNIVERSITY 2018 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A country's GDP is given by GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP is ₦10 trillion, and the consumption is ₦3 trillion, the investment is ₦1 trillion, the government sp\ending is ₦2 trillion, the exports are ₦2 trillion, and the imports are ₦1 trillion, what is the value of the trade balance?
Question 2
A firm's production function is given by Q = 2L + 3K, where Q is the output, L is the labor and K is the capital. If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, find the optimal combination of labor and capital that minimizes the \cost of production, given that the output is 100 units.
Question 3
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 0.5, what is the percentage change in quantity demanded when the price increases by 10%?
Question 4
A firm produces a good u\sing two inputs, labor and capital. The production function is given by Q = 2L^0.5K^0.5. If the firm uses 100 units of labor and 50 units of capital, calculate the total product.
Question 5
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing quantity and price, assuming the firm's objective is to maximize profits.
Question 6
A consumer has a utility function given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is given by the equation 2x + 3y = 100, and the prices of the two goods are ₦10 and ₦20 respectively, what is the optimal bundle of goods?
Question 7
A firm's production function is given by Q = 2L^0.5, where L is the labor input. If the firm hires 16 workers, what is the marginal product of labor (MPL)?
Question 8
A farmer in Nigeria produces maize and soybeans. The production function for maize is Qm = 1000 + 2L + 3K, where Qm is the quantity of maize produced, L is the labor used, and K is the capital used. The production function for soybeans is Qs = 800 + 4L + 2K, where Qs is the quantity of soybeans produced, L is the labor used, and K is the capital used. If the farmer uses 100 units of labor and 50 units of capital, find the quantity of maize and soybeans produced.
Question 9
A firm's production function is given by Q = 10K^\( 1/2 \) L^\( 1/2 \). If the firm's capital is 100 units and labor is 50 units, what is the marginal product of labor?
Question 10
A firm's demand function is given by Q = 100 - 2P + 5Y. If the price elasticity of demand is -2 and the income elasticity of demand is 0.5, what is the percentage change in quantity demanded when the price increases by 10% and income increases by 20%?
Question 11
A country's money supply is given by the equation: M = \( r + i \) + \( k + b \). If the interest rate is 5%, the inflation rate is 3%, the money multiplier is 2, and the reserve requirement is 10%, what is the money supply?
Question 12
A consumer has a utility function U(x, y) = 2x + 3y, where x is the quantity of good x consumed and y is the quantity of good y consumed. The prices of good x and good y are ₦10 and ₦20 respectively. Find the consumer's budget constraint and the optimal quantities of good x and good y to consume.
Question 13
A firm is producing a good with a cons\tant marginal \cost of ₦10 per unit. The market demand for the good is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the firm is currently producing 50 units, what is the profit-maximizing quantity?
Question 14
A country's balance of payments is given by the equation BOP = X - M, where BOP is the balance of payments, X is the value of exports, and M is the value of imports. If the value of exports is ₦100 billion and the value of imports is ₦120 billion, find the balance of payments.
Question 15
The government of Nigeria has introduced a new policy to increase agricultural production. The policy involves providing subsidies to farmers who use modern farming techniques. However, the policy has been criticized for being too expensive. Calculate the opportunity \cost of the policy in terms of the foregone revenue from taxation.
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