POST UTME BABCOCK UNIVERSITY 2020 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
The government of a country has decided to implement a new tax policy to reduce income inequality. The policy involves a progressive tax system where the tax rate increases as the income level increases. However, the tax rate is not uniform across all income levels. The tax rate for income levels below ₦100,000 is 10%, for income levels between ₦100,000 and ₦500,000 is 20%, and for income levels above ₦500,000 is 30%. If a person has an income of ₦700,000, what is the total tax amount they will pay?
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 percentage change in quantity demanded when the price increases by 10%?
Question 3
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, find the price at which the quantity demanded is 60 units.
Question 4
A consumer's budget constraint is given by the equation I = 100 - 2C, where I is the income and C is the consumption. If the consumer's indifference curve is given by the equation U = 2C, find the consumer's optimal consumption and income.
Question 5
A country's economic growth rate is 5% per annum, and its population growth rate is 2% per annum. What is the rate of growth of per capita income?
Question 6
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost curve is MC = 10. What is the monopolist's optimal price?
Question 7
A monopolist's demand function is given by Q = 100 - 2P. If the firm's marginal revenue function is MR = 200 - 2Q, what is the firm's optimal price?
Question 8
The supply of a product is given by the equation Qs = 2P + 10, where Qs is the quantity supplied and P is the price. If the price elasticity of supply is 0.2, find the price at which the quantity supplied is 20 units.
Question 9
A firm's demand curve is given by Q = 100 - 2P. The firm's marginal \cost curve is MC = 10. What is the firm's optimal price?
Question 10
A firm's production function is given by Q = 100K^0.5L^0.5, where Q is the output, K is the capital and L is the labor. If the firm wants to increase its output by 20% and the labor is increased by 10%, what is the percentage change in capital?
Question 11
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's current price is ₦50, calculate the elasticity of demand.
Question 12
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is the consumption, I is the investment, G is the government sp\ending, X is the exports and M is the imports. If the country's GDP is 100 billion naira, consumption is 30 billion naira, investment is 20 billion naira, government sp\ending is 15 billion naira, exports are 25 billion naira and imports are 10 billion naira, what is the value of the country's net exports?
Question 13
A firm's demand function is given by Q = 100 - 2P + 5Y. If the price elasticity of demand is cons\tant and equal to 2, what is the cross-price elasticity of demand with respect to income?
Question 14
A firm's production function is given by Q = 2L + 3K. The firm's \cost function is given by C = 10L + 20K. What is the firm's optimal input bundle of L and K?
Question 15
The balance of payments accounts for a country are given below:\n\nCurrent Account: ₦100 billion\nCapital Account: ₦50 billion\nFinancial Account: ₦20 billion\nErrors and Omissions: ₦10 billion\nWhat is the value of the trade balance?
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