POST UTME AAUA 2020 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm's production function is given by Q = 2L^2 + 5L. If the wage rate is ₦50 per hour, find the profit-maximizing level of labor u\sing the Kuhn-Tucker method.
Question 2
A consumer has the following utility function: U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are $2 and $3 respectively, and the consumer has a budget of $10, what is the consumer's optimal consumption bundle?
Question 3
A consumer's indifference curve is represented 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, what is the consumer's optimal bundle?
Question 4
A country's GDP is given by \( Y = C + I + G \), where ( C ) is consumption, ( I ) is investment, and ( G ) is government sp\ending. If the country's GDP is $100 billion, and the government sp\ending is $20 billion, what is the value of the marginal propensity to consume?
Question 5
The demand function for a product is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the price is increased by 10%, what is the new quantity demanded?
Question 6
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing price and quantity.
Question 7
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 100 units and the price of labor is ₦10 per unit, what is the minimum \cost of production?
Question 8
A country's GDP is ₦100 billion and its population is 20 million. If the country's GDP per capita is ₦5000, what is the country's economic growth rate?
Question 9
A monopolist faces a demand curve given by \( P = 100 - 2Q \) and a \cost function given by \( C = 50 + 10Q \). If the firm's profit-maximizing output is 20 units, what is the value of the price elasticity of demand at this output level?
Question 10
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are $2 and $3 respectively, and the consumer's income is $10, what is the consumer's optimal bundle of goods?
Question 11
The diagram below shows the production isoquant and the budget constraint. If the price of labor is 10 and the price of capital is 20, the optimal combination of labor and capital is
Question 12
A government imposes a tax on a commodity to reduce its consumption. However, the tax revenue is used to fund a program that increases the production of the same commodity. What is the effect of this policy on the market equilibrium?
Question 13
A firm is producing a good u\sing a production function Q = 2L^0.5K^0.5, where Q is output, L is labor and K is capital. If the firm increases labor from 100 to 121 units, and capital from 100 to 121 units, by how much will output increase?
Question 14
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \). If the country's exports are ₦100 billion, imports are ₦80 billion, foreign investment is ₦20 billion, and domestic investment is ₦30 billion, what is the balance of payments?
Question 15
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where L is labor and K is capital. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
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