POST UTME COVENANT UNIVERSITY 2019 Economics | Objective
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Question 1
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 per unit of labor and r = ₦200 per unit of capital, and the firm's current output price is p = ₦500 per unit, calculate the firm's profit-maximizing level of labor input, given that the firm's current capital input is K = 100 units.
Question 2
A consumer's indifference curve is represented by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, find the consumer's optimal bundle of x and y.
Question 3
Suppose a firm is operating in a perfectly competitive market with a downward-sloping demand curve. If the firm increases its output from 100 units to 120 units, and the price falls from ₦100 to ₦90, what is the price elasticity of demand?
Question 4
A monopolist faces a demand curve given by P = 100 - 2Q. If the firm's marginal \cost is MC = 20, what is the profit-maximizing quantity of output?
Question 5
Consider a country with a fixed exchange rate regime. If the domestic interest rate increases by 2% and the foreign interest rate remains cons\tant, what will be the effect on the balance of payments?
Question 6
A monopolist faces a demand curve given by Q = 100 - 2P. If the firm's marginal revenue (MR) is given by MR = 200 - 2Q, what is the firm's optimal price?
Question 7
A firm's demand curve is given by the equation Qd = 100 - 2P, where Qd is demand and P is price. If the firm's marginal revenue is ₦50, what is the firm's optimal price?
Question 8
A central bank increases the money supply by ₦10 billion. If the velocity of money is 2, find the increase in the price level.
Question 9
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?
Question 10
A country's GDP is given by the equation Y = C + I + G. If the current values of consumption, investment, and government sp\ending are 100, 50, and 20 respectively, what is the country's GDP?
Question 11
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's current price is ₦50, calculate the firm's elasticity of demand.
Question 12
A country's GDP is ₦100 billion, its imports are ₦20 billion, and its exports are ₦30 billion. Calculate its balance of trade.
Question 13
A country's national income is given by the equation Y = C + I + G, where Y is national income, C is consumption, I is investment, and G is government sp\ending. If the country's consumption is ₦500 billion, investment is ₦200 billion, and government sp\ending is ₦300 billion, what is the country's national income?
Question 14
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are 16 and 9 units respectively, what is the marginal product of labor?
Question 15
A firm's production function is given by \( Q = 2L^{0.5}K^{0.5} \). If the firm's output is 100 units and the price of labor is ₦20 per unit, find the firm's optimal level of capital.
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