POST UTME COVENANT UNIVERSITY 2021 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm's \cost function is given by the equation C = 2Q^2 + 10Q, where C is the \cost and Q is the quantity produced. If the firm produces 10 units, what is the total \cost?
Question 2
A firm's production function is given by Q = 3L^\( 2/3 \)K^\( 1/3 \), where L is labor and K is capital. If the firm's labor and capital inputs are increased by 25% and 20% respectively, what is the percentage change in output?
Question 3
A consumer has a budget of ₦100 and faces the following prices for two goods: Good A \costs ₦20 per unit and Good B \costs ₦30 per unit. If the consumer's indifference curve is given by the equation U = 2x + 3y, where x and y are the quantities of Good A and Good B respectively, what is the consumer's optimal consumption bundle?
Question 4
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will happen to its total revenue?
Question 5
A firm's demand function is given by \( Q = 100 - 2P \). If the firm's marginal revenue is ₦50, calculate the optimal price.
Question 6
A consumer has a budget of ₦1000 and faces the following prices for two goods: good X \costs ₦200 and good Y \costs ₦300. If the consumer's utility function is given by U = 2X + 3Y, what is the optimal bundle of goods that the consumer will choose?
Question 7
The GDP of a country is ₦10 trillion. If the country's population is 200 million, calculate the per capita GDP.
Question 8
The government of Nigeria has introduced a new policy to encourage agricultural production. The policy involves providing subsidies to farmers who produce crops that are in high demand. However, the policy also involves increa\sing the price of fertilizers to reflect their true market value. Which of the following is a likely consequence of this policy?
Question 9
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the price is increased by 20%, what is the new quantity demanded?
Question 10
Suppose the government of a country imposes a tax on a company's profits. If the tax rate is 20% and the company's pre-tax profits are ₦100,000, what is the company's post-tax profits?
Question 11
A government imposes a tax of ₦5 on every unit of a commodity. If the supply function is given by Qs = 2P - 10 and the demand function is given by Qd = 100 - 2P, what is the new equilibrium price?
Question 12
A government imposes a tax of ₦5 on every unit of a commodity. If the supply function is given by Qs = 2P - 10 and the demand function is given by Qd = 100 - 2P, what is the new equilibrium price?
Question 13
A firm's marginal revenue product (MRP) is given by the equation MRP = 2Q + 5. If the firm's marginal \cost (MC) is ₦10, what is the firm's optimal output?
Question 14
A firm's production function is given by \( Q = 2L^2 + 3K \). If the firm's \cost function is \( C = 10L + 20K \), what is the profit-maximizing level of labor?
Question 15
A country's government budget is given by G = 20% of GDP, where G is government exp\enditure and GDP is gross domestic product. If GDP is ₦100 billion, what is the government's exp\enditure?
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