POST UTME COAL CITY UNIVERSITY 2020 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A consumer's budget constraint is given by the equation 2x + 3y = 12, where x and y are the quantities of two goods consumed. If the consumer's utility function is U(x,y) = 2x + 3y, find the optimal quantities of x and y that maximize the consumer's utility.
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's \cost function is given by C(L, K) = 10L + 20K, what is the firm's optimal input bundle (L, K) that minimizes its \cost?
Question 3
A monopolist faces a demand curve given by Q = 100 - 2P. The firm's marginal \cost is MC = 10 + 2Q. What is the profit-maximizing price and quantity?
Question 4
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is ₦50, what is the quantity demanded?
Question 5
A country's GDP is ₦100 billion, its government exp\enditure is ₦30 billion, and its private consumption is ₦50 billion. What is the country's net domestic product?
Question 6
The Marshall-Lerner condition states that a country's balance of payments will improve if the sum of the percentage changes in its export and import prices exceeds the percentage change in its exchange rate. Which of the following countries is likely to experience an improvement in its balance of payments if the global economy experiences a recession?
Question 7
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦200, and it currently uses 100 units of labor and 50 units of capital, what is the firm's current marginal product of labor?
Question 8
A monopolist faces a demand curve given by Q = 100 - 2P. The firm's marginal \cost is MC = 10 + 2Q. What is the profit-maximizing price and quantity?
Question 9
A country's GDP is given by the equation Y = C + I + G, where C is consumption, I is investment, and G is government sp\ending. If the country's GDP is ₦10 trillion, consumption is ₦3 trillion, investment is ₦2 trillion, and government sp\ending is ₦1 trillion, calculate the marginal propensity to consume.
Question 10
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 10x + 5y = 100, and the price of good x is ₦20, what is the consumer's optimal bundle?
Question 11
A firm's \cost function is given by C = 2L + 3K, where L is labor and K is capital. If the firm's revenue function is given by R = 4L + 5K, calculate the firm's profit-maximizing level of labor and capital.
Question 12
A country's GDP is given by the equation GDP = C + I + G + \( X - M \). If the country's consumption function is C = 100 + 0.8Y, its investment function is I = 50 + 0.2Y, its government sp\ending function is G = 200, its export function is X = 500 + 0.5Y, and its import function is M = 300 + 0.3Y, what is the country's GDP when Y = 1000?
Question 13
A country's money supply is given by the equation M = kPY, where M is the money supply, k is a cons\tant, P is the price level, and Y is real GDP. If the country's money supply is ₦5 trillion, the price level is 100, and real GDP is ₦10 trillion, calculate the value of k.
Question 14
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 15
A firm's supply curve is given by the equation Q = 2P + 10, where Q is the quantity supplied and P is the price. If the firm's marginal \cost function is MC(P) = 2P + 5, find the price at which the firm's supply curve intersects the demand curve.
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