POST UTME WELLSPRING UNIVERSITY 2020 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A consumer's utility function is given by U = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12, what is the consumer's optimal bundle of goods?
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 16 units when labor (L) is 4 units and capital (K) is 4 units, what is the marginal product of labor?
Question 3
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 2x + 3y = 12, find the consumer's optimal consumption bundle.
Question 4
A central bank increases the money supply by 10%. What is the expected effect on the price level?
Question 5
The demand for a product is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the product is given by Qs = 2P - 50, where Qs is the quantity supplied. Find the elasticity of demand.
Question 6
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 7
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^\( 1/2 \)K^\( 1/2 \), where L is labor and K is capital. If the firm's current input levels are L = 4 and K = 9, calculate the marginal product of labor (MPL) and the marginal product of capital (MPK).
Question 8
A consumer's utility function is given by U = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of x and y?
Question 9
The money market equilibrium is given by the equation M = kPY. If the money supply is ₦1000, the price level is ₦5, and the income is ₦2000, what is the value of k?
Question 10
A firm produces two goods, A and B, u\sing two inputs, Labour and Capital. The production function for good A is given by \( Q_A = 2L^0.5K^{0.5} \) and for good B is given by \( Q_B = 3L^{0.5}K^{0.5} \). If the firm has 100 units of Labour and 50 units of Capital, find the optimal mix of good A and good B u\sing the method of Lagrange multipliers.
Question 11
The demand for a product is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the product is given by Qs = 2P - 50, where Qs is the quantity supplied. Find the equilibrium price and quantity.
Question 12
Consider a consumer with a utility function ( U(x,y) = 2x + 3y - x^2 - 2y^2 ). If the consumer's income is ₦1000 and the prices of x and y are ₦2 and ₦3 respectively, find the optimal bundle of x and y u\sing Lagrange multipliers.
Question 13
A government imposes a tax on a firm's output. Which of the following is a characteristic of the supply curve?
Question 14
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current inputs are L = 4 and K = 9, what is the marginal product of labor?
Question 15
Consider a market with two firms, A and B, producing a homogeneous product. Firm A has a \cost function \( C_A = 100 + 2Q_A \) and Firm B has a \cost function \( C_B = 120 + 2Q_B \). If the market demand is given by \( Q = 100 - P \), find the equilibrium price and quantity u\sing the Cournot model.
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