POST UTME AFE BABALOLA UNIVERSITY 2018 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A country's GNP is ( 150 ) billion naira, its imports are ( 30 ) billion naira, and its exports are ( 40 ) billion naira. Calculate the country's net foreign income.
Question 2
A consumer has a budget constraint given by the equation I = 100 - 2C, where I is the income and C is the consumption. If the consumer's income is ₦100, what is the maximum amount of consumption?
Question 3
A firm's production function is \( Q = f\( L \ \) = 3L^2 ). If the firm's revenue function is \( R = 20Q \) and the wage rate is \( W = 10 \), calculate the firm's profit-maximizing output level.
Question 4
Consider a firm operating in a perfectly competitive market with a given production function \( Q = f\( L \ \) = 2L^2 ). If the wage rate is \( W = 10 \) and the firm's revenue function is \( R = 20Q \), calculate the firm's profit-maximizing output level.
Question 5
A firm is producing a good with a marginal \cost of ₦50 and a marginal revenue of ₦60. If the firm is producing 100 units, what is the profit-maximizing quantity?
Question 6
A firm is producing at the point where its marginal product of labor (MPL) is equal to its wage rate (W). If the firm's total product of labor (TPL) is given by TPL = 10L^2 - 2L, what is the firm's average product of labor (APL)?
Question 7
A country has a money supply of ₦100 billion and a velocity of 2. The country's price level is 100. What is the country's nominal GDP?
Question 8
A perfectly competitive firm's supply curve is a rec\tangular hyperbola. What is the relationship between the firm's marginal \cost (MC) and its average total \cost (ATC) in the short run?
Question 9
A consumer has a budget of ₦1000 and faces the following prices for two goods: Good A \costs ₦200 per unit and Good B \costs ₦300 per unit. If the consumer's utility function is given by U = 2x + 3y, where x is the quantity of Good A and y is the quantity of Good B, find the consumer's optimal consumption bundle.
Question 10
A country's inflation rate is given by the equation \( pi = \frac{M}{V} \), where M is the money supply and V is the velocity of money. If the money supply is ₦500 billion and the velocity of money is 2, find the inflation rate.
Question 11
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 value of exports is ₦500 billion and the value of imports is ₦600 billion, find the balance of payments.
Question 12
A consumer has a budget of $100 and is choo\sing between two goods, A and B. The price of good A is $20 and the price of good B is $30. The consumer's utility function is given by U = 2x + 3y, where x is the quantity of good A and y is the quantity of good B. What is the consumer's optimal consumption bundle?
Question 13
Suppose 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 supply of the product is given by the equation Qs = 2P - 50, where Qs is the quantity supplied, find the equilibrium price and quantity.
Question 14
A monopolist faces a demand curve given by Q = 100 - 2P. If the firm's marginal revenue (MR) is equal to its marginal \cost (MC), what is the price at which the firm will produce?
Question 15
The government of Nigeria has implemented a policy to increase agricultural production by providing subsidies to farmers. However, this policy has been criticized for being inefficient and wasteful. What is the opportunity \cost of this policy?
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