POST UTME COAL CITY UNIVERSITY 2019 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
The concept of elasticity of demand is impor\tant in unders\tanding how changes in price affect the quantity demanded of a good. Which of the following is a correct statement about elasticity of demand?
Question 2
A country's balance of payments 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 $100 and the value of imports is $80, what is the balance of payments?
Question 3
A consumer's utility function is given by U = x^(2) + 2y. The budget constraint is given by 2x + 3y = ₦100. Determine the optimal values of x and y.
Question 4
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 5
The demand for a commodity is given by Qd = 100 - 2P and the supply is given by Qs = 2P - 50. Determine the equilibrium price and quantity.
Question 6
A country's balance of payments is given by the equation BOP = 100 + 20X, where BOP is the balance of payments and X is the exchange rate. If the exchange rate increases by 10%, what is the percentage change in the balance of payments?
Question 7
A firm's \cost function is given by C(q) = 3q^2 + 5q + 2. If the market price is P = 10, what is the firm's profit-maximizing output level?
Question 8
A firm's demand function is given by Q = 100 - 2P. If the market price is P = 20, what is the firm's quantity demanded?
Question 9
A farmer produces wheat and maize. The production functions are given by W = 2L + 3K and M = 3L + 2K, where L is labor and K is capital. If the farmer's income is ₦1000 and the prices of wheat and maize are ₦5 and ₦3 respectively, find the optimal bundle of labor and capital u\sing Lagrange multipliers.
Question 10
A firm's production function is given by Q = 3L^(2)K. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and if the firm's budget constraint is given by 100L + 200K = ₦10000, determine the optimal values of L and K.
Question 11
A country's GDP is 100 billion naira. The government decides to increase the price of a product by 20%. If the price elasticity of demand is -2, what is the percentage change in the quantity demanded?
Question 12
The concept of scarcity in economics implies that the production of one good is limited by the availability of resources, which can be used to produce other goods. This is an example of a trade-off between two goods. Which of the following is a correct statement about the trade-off?
Question 13
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's consumption is $100, investment is $50, government sp\ending is $20, exports are $80, and imports are $60, what is the GDP?
Question 14
Consider a firm operating in a perfectly competitive market with a \cost function C(q) = 2q^2 + 10q + 5. If the market price is P = 15, what is the firm's profit-maximizing output level?
Question 15
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and if the firm's budget constraint is given by 100L + 200K = ₦10000, determine the optimal values of L and K.
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