POST UTME CALEB UNIVERSITY 2022 Economics | Objective
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Question 1
A country's GDP is given by the equation Y = C + I + G, where Y is GDP, C is consumption, I is investment, and G is government sp\ending. If the country's GDP is $100 billion, consumption is $60 billion, investment is $20 billion, and government sp\ending is $10 billion, what is the marginal propensity to consume?
Question 2
Consider a small open economy with a fixed exchange rate. If the economy experiences an increase in aggregate demand, what will be the effect on the balance of payments?
Question 3
A firm's production function is given by Q = 3L^0.5K^0.5. If the firm increases its labor input from 25 to 36 units, and keeps its capital input cons\tant at 16 units, what is the percentage change in output?
Question 4
A country's GDP is given by the equation Y = C + I + G, where Y is GDP, C is consumption, I is investment, and G is government sp\ending. If the country's GDP is $100 billion, consumption is $60 billion, investment is $20 billion, and government sp\ending is $10 billion, what is the marginal propensity to consume?
Question 5
A firm is considering the production of two goods, A and B. The production function for good A is given by Q_A = 2L^0.5K^0.5, where L is labor and K is capital. The production function for good B is given by Q_B = 3L^0.7K^0.3. If the firm has 100 units of labor and 50 units of capital, what is the marginal rate of technical substitution (MRTS) between labor and capital for good A?
Question 6
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm increases its labor input from 100 to 120 units, and its capital input from 100 to 120 units, what is the percentage change in the quantity produced?
Question 7
A central bank increases the reserve requirement for commercial banks. What is the likely effect on the money supply?
Question 8
A firm's demand function is given by Q = 100 - 2P, where P is the price of the good. If the firm's marginal \cost is ₦5 per unit, find the profit-maximizing price.
Question 9
A firm's \cost function is given by C = 2L + 3K, where C is \cost, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 20% and 15%, respectively, what is the percentage change in \cost?
Question 10
A consumer's utility function is given by U(x, y) = 2x^0.5y^0.5, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 2x + 3y = 12, find the optimal consumption bundle.
Question 11
A country's GDP is $100 billion, and its government sp\ends $20 billion on infrastructure. What is the multiplier effect of this exp\enditure on the country's GDP?
Question 12
The concept of scarcity in economics implies that the production of one good or service is often at the expense of another. Which of the following is a correct example of this principle?
Question 13
A consumer's budget constraint is given by P1Q1 + P2Q2 = I, where P1 and P2 are the prices of two goods, Q1 and Q2 are the quantities consumed, and I is the consumer's income. What is the opportunity \cost of consuming one more unit of good 1?
Question 14
A firm's demand curve is given by the equation Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm wants to increase its revenue by 20%, how much should it increase its price?
Question 15
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 20% and 15%, respectively, what is the percentage change in output?
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