POST UTME VERITAS UNIVERSITY 2019 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A country's agricultural sector is characterized by a production function \( Q = 2L^2 + 3K^2 \). If the country's agricultural sector is subject to a subsidy of ₦100 billion, what is the country's agricultural GDP?
Question 2
A consumer's indifference curve is given by the equation ( U(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, find the consumer's optimal bundle of x and y.
Question 3
A consumer's indifference curve is given by the equation U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's budget constraint is 10x + 5y = 100, what is the optimal combination of x and y?
Question 4
The national income of a country is given by Y = C + I + G. If the consumption function is given by C = ₦100 + 0.5Y, the marginal propensity to consume is
Question 5
The money multiplier is a measure of the change in the money supply resulting from a change in the reserve requirement. If the reserve requirement is increased from 10% to 15%, and the money multiplier is 5, what is the percentage change in the money supply?
Question 6
A firm's production function is given by \( Q = 2L^2 + 3K^2 \). If the firm's \cost function is \( C = 10L + 20K \), what is the firm's profit-maximizing level of L and K?
Question 7
A firm is producing a good with the following \cost and revenue functions: C(x) = 2x^2 + 10x + 5 and R(x) = 3x^2 - 2x + 1. U\sing the concept of profit maximization, find the level of production that will maximize the firm's profit.
Question 8
A country's GDP is given by \( GDP = C + I + G + \( X - M \ \) ). If the country's consumption is ₦500 billion, investment is ₦200 billion, government sp\ending is ₦300 billion, exports are ₦400 billion, and imports are ₦200 billion, what is the country's GDP?
Question 9
A country's GDP is given by \( GDP = C + I + G + \( X - M \ \) ). If the country's consumption is ₦500 billion, investment is ₦200 billion, government sp\ending is ₦300 billion, exports are ₦400 billion, and imports are ₦200 billion, find the country's GDP.
Question 10
A firm's demand curve is given by Q = 100 - 2P. If the price elasticity of demand is calculated at a price of ₦50, the value of the elasticity is
Question 11
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 12
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's budget constraint is 10x + 5y = 100, what is the optimal combination of x and y?
Question 13
A firm is producing a good with a production function Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm is currently producing 100 units of output with 10 units of labor and 20 units of capital, what is the marginal product of labor?
Question 14
A firm is producing a good u\sing the production function \( Q = 2K^0.5L^0.5 \). If the price of the good is ₦200, the price of capital is ₦50, and the price of labor is ₦25, what is the optimal level of capital and labor if the firm wants to maximize profit?
Question 15
The government of a country is considering a tax on a particular good. The 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 government imposes a tax of 10 on the good, what is the new price elasticity of demand?
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