POST UTME VERITAS UNIVERSITY 2020 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm's demand function is given by \( Q = 100 - 2P \), where ( Q ) is the quantity demanded and ( P ) is the price. If the firm's supply function is \( Q = 2P - 10 \), what is the equilibrium price and quantity?
Question 2
Consider a production function \( Q = f\( L, K \ \) ) where ( Q ) is the quantity of output, ( L ) is labor, and ( K ) is capital. If the marginal product of labor is \( MP_L = \frac{partial Q}{partial L} = 10 \) and the marginal product of capital is \( MP_K = \frac{partial Q}{partial K} = 5 \), what is the value of the elasticity of substitution between labor and capital?
Question 3
A firm's demand curve is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the firm's supply curve is given by the equation Qs = 2P - 100, what is the equilibrium price?
Question 4
A firm's production function is given by Q = 100L^0.5K^0.5. If the price of labor increases by 20% and the price of capital increases by 15%, calculate the new value of the marginal product of capital.
Question 5
A firm's production function is given by Q = 100L^0.5K^0.5. If the price of labor increases by 20% and the price of capital increases by 15%, calculate the new value of the marginal product of labor.
Question 6
A firm's demand for labor is given by the equation L = 100 - 2W, where W is the wage rate. If the firm's supply of labor is given by L = 2W - 10, find the equilibrium wage rate and quantity of labor.
Question 7
A firm's revenue function is given by R(x) = 2x^2 + 10x. If the firm's marginal revenue function is MR(x) = 4x + 10, what is the value of x that maximizes revenue?
Question 8
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the prices of the goods are $2 and $3 respectively, and the consumer has a budget of $10, what is the optimal bundle of goods?
Question 9
A country's GDP is 100 billion naira. If the country's GNP is 120 billion naira, calculate the value of the net factor income from abroad.
Question 10
A firm's production function is given by \( Q = 2L^2 + 3K \), where ( Q ) is the quantity of output, ( L ) is labor, and ( K ) is capital. If the firm's \cost function is \( C = 10L + 20K \), what is the firm's profit-maximizing level of labor and capital?
Question 11
A firm's \cost function is given by C = 2L + 3K, where L is labor and K is capital. If the firm's revenue function is given by R = 10L + 5K, what is the profit-maximizing level of labor?
Question 12
A country's balance of payments (BOP) is given by the equation BOP = X - M, where X is the value of exports and M is the value of imports. If the country's exports are $100 million and its imports are $120 million, what is the value of BOP?
Question 13
A monopolist faces a demand curve given by Qd = 100 - 2P and a \cost function given by C = 200 + 2Q. Find the profit-maximizing price and quantity.
Question 14
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm wants to produce 100 units of output, and the wage rate is $10 per hour and the rental rate is $20 per unit of capital, what is the optimal combination of labor and capital?
Question 15
U\sing the concept of opportunity \cost, explain why a country may choose to specialize in the production of a particular good even if it is not the most efficient producer of that good.
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.
Unlock Full Access
Available for Android & Windows