POST UTME COVENANT UNIVERSITY 2020 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm is producing a good with a production function Q = 3L^0.5K^0.5, where L is labor and K is capital. If the price of labor is $10 per hour and the price of capital is $20 per unit, and the firm is currently producing 100 units of output, what is the marginal product of capital (MPC) in terms of output?
Question 2
A firm's \cost function is given by C(x) = 100 + 2x + 0.5x^2, where x is the number of units produced. Determine the marginal \cost when the firm produces 20 units.
Question 3
A firm is producing a good u\sing a production function Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm is currently producing 10 units of the good, what is the total revenue?
Question 4
Calculate the marginal propensity to consume (MPC) when the total consumption function is given by C = 100 + 0.8Y, where Y is the national income.
Question 5
A consumer has the following utility function: U(x,y) = 2x + 3y. If the prices of x and y are $2 and $3 respectively, and the consumer has a budget of $10, what is the optimal bundle of x and y?
Question 6
A consumer has an income of ₦1000 and faces a budget constraint given by P1x + P2y = 1000, where P1 and P2 are the prices of goods X and Y, respectively. If the consumer's indifference curve is given by U = 2x^0.5y^0.5, find the consumer's optimal bundle of goods.
Question 7
A firm is producing a good u\sing two inputs, labor and capital. The production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm is currently producing 10 units of the good, what is the total \cost of production?
Question 8
A consumer has an indifference curve given by U = 2x^0.5y^0.5, where x is the quantity of good X and y is the quantity of good Y. If the price of good X is ₦50 per unit and the price of good Y is ₦100 per unit, find the consumer's optimal bundle of goods.
Question 9
A firm produces a product with a production function Q = 2L^0.5K^0.5, where L is labor and K is capital. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, find the \cost-minimizing combination of labor and capital.
Question 10
The government of Nigeria has introduced a new tax policy aimed at increa\sing revenue from the agricultural sector. The policy involves a 10% tax on all agricultural produce sold in the market. If the total revenue from the sale of agricultural produce is ₦1,500,000, what is the amount of tax paid by the farmers?
Question 11
A firm is producing a good u\sing a production function Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm is currently producing 10 units of the good, what is the marginal product of capital?
Question 12
Consider a market with a demand curve given by \( Q_d = 100 - 2P \) and a supply curve given by \( Q_s = 2P \). If the market is initially in equilibrium at a price of \( P = 20 \), what is the new equilibrium price and quantity if the demand curve shifts to the right by 10 units?
Question 13
A monopolist faces a demand curve with a cons\tant elasticity of -2. If the firm's marginal revenue (MR) is given by MR = 100 - 2Q, where Q is the quantity sold, what is the firm's optimal price?
Question 14
A firm has a production function given by Q = 3L^0.5K^0.5. If the price of the good is $15 and the wage rate is $10 per unit of labor, what is the optimal level of labor to hire?
Question 15
A consumer's utility function is given by U = x^2 + 2y^2, where x and y are the quantities of two goods. If the consumer's income is ₦1000, and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
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