POST UTME ACHIEVERS UNIVERSITY 2023 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm's production function is given by Q = 2L + 3K, where Q is output, L is labor, and K is capital. If the firm's labor and capital inputs are 10 and 5 respectively, what is the total output?
Question 2
The central bank of a country has a monetary policy objective of reducing inflation. If the current inflation rate is 5% and the central bank wants to reduce it to 2% within the next 2 years, what is the required annual rate of inflation reduction?
Question 3
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 name of this threshold?
Question 4
The government of a country imposes a tax on imported goods to raise revenue. This tax is an example of a _______ tax.
Question 5
A firm is considering investing in a new project with the following cash flows: Year 0: -₦100,000, Year 1: ₦50,000, Year 2: ₦70,000, Year 3: ₦90,000. If the discount rate is 10%, calculate the net present value (NPV) of the project.
Question 6
A firm's demand curve is given by Q = 100 - 2P. If the firm's marginal revenue (MR) curve is given by MR = 200 - 4P, what is the firm's equilibrium price?
Question 7
A monopolist faces a demand curve given by p = 100 - 2q. The firm's marginal \cost (MC) is cons\tant at 20. U\sing the concept of marginal revenue (MR), determine the monopolist's profit-maximizing price and quantity.
Question 8
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input prices are w_L = 10 and w_K = 20, and the firm's current output price is p = 50, what is the firm's maximum profit?
Question 9
A consumer's utility function is given by U(x, y) = 2x + 3y. The consumer's budget constraint is given by 2x + 3y = 30. Determine the consumer's optimal consumption bundle.
Question 10
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w_L = 10 and w_K = 20, and the firm's current output price is p = 50, what is the firm's maximum profit?
Question 11
A firm is considering investing in a new project with the following cash flows: Year 0: -₦100,000, Year 1: ₦50,000, Year 2: ₦70,000, Year 3: ₦90,000. If the discount rate is 10%, calculate the internal rate of return (IRR) of the project.
Question 12
A consumer's budget constraint is given by the equation I = 100 + 2Y, where I is income and Y is years of experience. If the consumer's income is 120 and years of experience is 5, what is the income?
Question 13
A firm's revenue function is given by R = 100x - 2x^2. If the firm produces 10 units, then the total revenue is _______.
Question 14
A firm's production function is given by Q = 3L^0.7K^0.3. If the firm's current input prices are w_L = 15 and w_K = 25, and the firm's current output price is p = 60, what is the firm's maximum profit?
Question 15
A firm's demand for labor is given by the equation Q = 100L^0.5, where Q is the quantity of labor demanded and L is the wage rate. If the wage rate increases by 20%, what is the percentage change in the quantity of labor demanded?
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.
Unlock Full Access
Available for Android & Windows