POST UTME ACHIEVERS UNIVERSITY 2020 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A monopolistically competitive firm faces a demand curve given by Q = 100 - 2P. If the firm's marginal revenue (MR) is given by MR = 50 - 2Q, what is the firm's optimal price?
Question 2
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, what is the price at which the quantity demanded is 60?
Question 3
A firm faces a demand curve given by P = 100 - Q, where P is the price and Q is the quantity sold. The firm's marginal \cost curve is given by MC = 20 + 2Q. What is the profit-maximizing price?
Question 4
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current inputs are L = 16 and K = 9, what is the marginal product of labor?
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor (L) is 16 and capital (K) is 9, what is the firm's output?
Question 6
A country's GDP is ₦1,000,000,000,000. If the population is 200 million, what is the per capita income?
Question 7
A firm's revenue function is given by R(Q) = 2Q^2 - 10Q + 100. If the marginal revenue is ₦50, what is the optimal quantity?
Question 8
A country's balance of payments can be calculated u\sing the following formula: BOP = X - M + \( F - I \). If the country's exports (X) are 200, imports (M) are 150, foreign investment (F) is 100, and domestic investment (I) is 50, what is the country's balance of payments?
Question 9
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost is MC = 10. What is the optimal price and quantity for the monopolist?
Question 10
The Marshall-Lerner condition states that a country's balance of payments will improve if the sum of the percentage changes in its export and import prices exceeds a certain threshold. What is the threshold value?
Question 11
A monopolist faces a demand curve given by P = 100 - Q, where P is the price and Q is the quantity sold. The monopolist's marginal \cost curve is given by MC = 20 + 2Q. What is the profit-maximizing quantity sold?
Question 12
Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm increases its production from 100 units to 120 units, and the price falls from ₦100 to ₦90, what is the price elasticity of demand?
Question 13
A firm is considering investing in a new project that requires an initial investment of ₦5 million. The project is expected to generate a revenue of ₦10 million in the first year, ₦15 million in the second year, and ₦20 million in the third year. U\sing the concept of \cost-benefit analysis, calculate the \cost-benefit ratio of the project and determine whether it is a viable investment opportunity.
Question 14
The government of Nigeria has implemented a policy to increase the production of rice by providing subsidies to farmers. What is the likely effect of this policy on the price of rice in the short run?
Question 15
A country's GDP can be calculated u\sing the following formula: GDP = C + I + G + \( X - M \). If the country's consumption (C) is 100, investment (I) is 50, government sp\ending (G) is 75, exports (X) are 200, and imports (M) are 150, what is the country's GDP?
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