POST UTME AAUA 2023 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm's production function is given by \( Q = 2L^2 + 3K \), where Q is the output, L is the labor, and K is the capital. If the firm's labor and capital are 10 and 5 respectively, what is the firm's output?
Question 2
A government is considering a tax on a particular good to raise revenue. If the tax is 10% of the price, and the demand for the good is given by Qd = 100 - 2P, what is the new equilibrium price?
Question 3
A country's GDP is calculated as the sum of its consumption, investment, government sp\ending, and net exports. If the country's GDP is ₦1,500 billion, and its government sp\ending is ₦300 billion, what is the sum of its consumption and investment?
Question 4
A firm produces two goods, A and B, u\sing two inputs, labor and capital. The production function for good A is given by Q_A = 2L^0.5 K^0.5, where Q_A is the quantity of good A produced, L is the amount of labor used, and K is the amount of capital used. If the firm uses 4 units of labor and 9 units of capital, what is the marginal product of labor?
Question 5
A central bank is considering a monetary policy to reduce inflation. It can either increase the reserve requirement or decrease the money supply. Which policy would be more effective in reducing inflation?
Question 6
Consider a perfectly competitive market with multiple firms producing a homogeneous product. If the market demand curve is downward-sloping and the firms are price-takers, what is the likely outcome for the firms' profit margins?
Question 7
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 Qs = 50 + 3P, find the equilibrium price and quantity.
Question 8
The Marshall-Lerner condition states that if the sum of the elasticities of demand for imports and exports is greater than 1, then a devaluation of the currency will lead to a
Question 9
A firm's revenue function is given by ( R(x) = 100x - 2x^2 ). If the firm's marginal revenue is $20, find the value of ( x )
Question 10
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 billion and imports are ₦120 billion, find the value of BOP.
Question 11
A consumer's utility function is given by 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 optimal bundle of x and y.
Question 12
A firm's revenue function is given by R = 2Q^2, where R is the revenue and Q is the output. If the firm wants to increase its revenue by 50%, what is the required percentage increase in output?
Question 13
A perfectly competitive market has a demand curve given by P = 100 - 2q and a supply curve given by P = 10 + q. Find the equilibrium price and quantity.
Question 14
A central bank is considering a monetary policy to reduce inflation. The money supply is given by the equation M = kPY, where M is the money supply, k is a cons\tant, P is the price level, and Y is the real GDP. If the central bank wants to reduce the money supply by 10%, what is the percentage change in the price level?
Question 15
A country's government imposes a tax on its citizens, which is a lump-sum tax of ₦100 per person. If the country has a population of 50 million people, what is the total tax revenue collected by the government?
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