POST UTME CALEB UNIVERSITY 2020 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
Consider a firm operating in a perfectly competitive market with a production function given by Q = 2L^0.5K^0.5. If the price of the good is $10 and the wage rate is $5 per unit of labor, what is the optimal level of labor to employ?
Question 2
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital are increased by 20% and 15% respectively, what is the percentage change in output?
Question 3
A perfectly competitive market has a demand function P = 100 - 2Q and a supply function P = 20 + Q. What is the equilibrium price and quantity?
Question 4
A bank has a reserve requirement of 10% and a cash reserve of $100 million. If it receives a new deposit of $50 million, what is the maximum amount of new loans it can make?
Question 5
A consumer's budget constraint is given by 2x + 3y = 12, where x is the quantity of good X and y is the quantity of good Y. If the consumer's income increases by 20%, what is the new budget constraint?
Question 6
A consumer's indifference curve is given by U = 2x + 3y. If the consumer's current consumption bundle is (x, y) = (2, 3), what is the marginal rate of substitution?
Question 7
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital are increased by 20% and 15% respectively, what is the new production function?
Question 8
A country's balance of payments account shows a trade deficit of $100 million and a capital account surplus of $50 million. What is the overall balance of payments position?
Question 9
Consider a country with a balance of payments deficit. Which of the following would be a consequence of this deficit?
Question 10
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \), where X is exports, M is imports, F is foreign investment, and I is domestic investment. If the country's exports are ₦500 billion, imports are ₦300 billion, foreign investment is ₦200 billion, and domestic investment is ₦100 billion, determine the balance of payments.
Question 11
A firm has a \cost function C(q) = 10q + 20, where q is the quantity produced. If the firm's revenue function is R(q) = 20q, what is the firm's profit-maximizing quantity?
Question 12
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current inputs are L = 4 and K = 9, what is the total product of labor?
Question 13
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm produces 20 units of output, what is the total \cost of production?
Question 14
A government imposes a tax on a firm's output. The firm's supply curve shifts to the left. What is the effect on the equilibrium price?
Question 15
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm has 100 units of labor and 200 units of capital, determine the output.
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