POST UTME VERITAS UNIVERSITY 2022 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
Consider a market with a demand curve given by \( Q = 100 - 2P \) and a supply curve given by \( Q = 20 + 2P \). What is the equilibrium price and quantity in this market?
Question 2
A firm's \cost function is given by C(x) = 2x^2 + 5x + 10, where x is the number of units produced. If the firm's revenue function is R(x) = 4x^2 + 5x + 10, find the value of x that minimizes the firm's average \cost.
Question 3
A country's GDP is $100 billion, its imports are $20 billion, and its exports are $30 billion. Calculate the country's balance of trade.
Question 4
Suppose a firm's revenue function is given by R(x) = 2x^2 + 5x + 10, where x is the number of units produced. If the firm's marginal revenue function is MR(x) = 4x + 5, find the value of x that maximizes revenue.
Question 5
The central bank of Nigeria uses a monetary policy instrument to control the money supply in the economy. The instrument is given by the equation M = 1000B, where M is the money supply and B is the bank reserves. If the bank reserves are ₦1000, find the money supply.
Question 6
A government imposes a tax on a firm's output. If the firm's supply curve is given by Q = 100 + 2P and the tax rate is ₦5 per unit, what is the firm's new supply curve?
Question 7
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 increases labor from 4 units to 9 units, and capital from 9 units to 16 units, calculate the marginal product of labor.
Question 8
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \). If the country's exports are ₦1000, imports are ₦800, foreign investment is ₦500, and domestic investment is ₦200, what is the country's balance of payments?
Question 9
A country has a trade deficit of ₦100 billion and a current account deficit of ₦150 billion. What is the likely effect on the exchange rate?
Question 10
The government of Nigeria uses a fiscal policy instrument to control the budget deficit in the economy. The instrument is given by the equation B = 1000T, where B is the budget deficit and T is the tax revenue. If the tax revenue is ₦1000, find the budget deficit.
Question 11
A firm's demand curve is given by \( Q = 100 - 2P \) and the firm's marginal revenue curve is given by \( MR = 100 - 2Q \). What is the firm's elasticity of demand at a price of \( P = 20 \)?
Question 12
The government of Nigeria imposes a tax on the production of a certain commodity. The tax is given by the equation T = 0.1Q, where T is the tax and Q is the quantity produced. If the price of the commodity is ₦100 per unit, and the price of labor is ₦50 per unit, and the price of capital is ₦200 per unit, find the optimal level of labor and capital to produce.
Question 13
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 increases labor from 4 units to 9 units, and capital from 9 units to 16 units, calculate the percentage change in output.
Question 14
Consider a country that imports 100 units of a good from another country. The price of the good in the importing country is $10 per unit, while the price in the exporting country is $8 per unit. If the exchange rate is 1 USD = 1 Naira, calculate the opportunity \cost of importing the good in Naira.
Question 15
Determine the equilibrium price and quantity of a competitive market for a product with the following demand and supply functions: Qd = 100 - 2P, Qs = 50 + 3P.
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