POST UTME COVENANT UNIVERSITY 2024 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A central bank can use the following tools to control inflation. Which one is NOT a tool?
Question 2
Consider a firm operating in a perfectly competitive market. If the firm's average total \cost (ATC) curve intersects its marginal \cost (MC) curve at two points, what can be concluded about the firm's production decision?
Question 3
A firm's production function is given by \( Q = 2L^{1/2}K^{1/2} \). If the firm's output is 100 units and the wage rate is ₦50 per hour, what is the minimum amount of capital the firm should employ?
Question 4
A country's trade balance is given by the following equation: Trade Balance = \( X - M \) + \( F - I \). If X = ₦100 billion, M = ₦80 billion, F = ₦20 billion, and I = ₦15 billion, what is the trade balance?
Question 5
The demand for a product is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the product is given by Qs = 2P - 100. What is the equilibrium price and quantity?
Question 6
A country's GDP can be calculated u\sing the following formula: GDP = C + I + G + \( X - M \). If the country's consumption (C) is ₦100 billion, investment (I) is ₦50 billion, government sp\ending (G) is ₦20 billion, exports (X) are ₦80 billion, and imports (M) are ₦40 billion, what is the country's GDP?
Question 7
A farmer in Nigeria is considering whether to plant maize or yams on his 10-hectare farm. The expected yield of maize is 2 tons per hectare, while the expected yield of yams is 1.5 tons per hectare. If the price of maize is ₦50 per ton and the price of yams is ₦40 per ton, what is the opportunity \cost of planting yams instead of maize?
Question 8
A government wants to reduce the budget deficit by increa\sing taxes. If the current tax rate is 20% and the government wants to increase it by 5%, what will be the new tax rate?
Question 9
The government of a country decides to implement a new tax on luxury goods to reduce income inequality. The tax rate is set at 20% of the good's price. If the demand for the good is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price, and the supply of the good is given by the equation Q = 2P - 100, find the equilibrium price and quantity of the good.
Question 10
A firm's production function is given by Q = 2L + 3K. If the price of labor is 10 naira per hour and the price of capital is 20 naira per unit, and the firm is currently producing 100 units of output, what is the opportunity \cost of an additional unit of labor?
Question 11
A firm's revenue function is given by R(x) = 3x^2 - 5x + 2. If the firm produces 15 units of output, what is the marginal revenue?
Question 12
A firm's \cost function is given by C(x) = 2x^2 + 10x + 5. If the firm produces 20 units of output, what is the total \cost?
Question 13
A firm is considering two investment projects, A and B. Project A has a \cost of ₦100,000 and a return of ₦120,000, while project B has a \cost of ₦150,000 and a return of ₦180,000. If the firm has a \cost of capital of 10%, which project should it choose?
Question 14
A central bank in a country is considering a monetary policy to reduce inflation. The current inflation rate is 10%, and the central bank wants to reduce it to 5% within the next 2 years. If the interest rate is currently 10%, and the central bank wants to increase it to 15% within the next 2 years, what is the expected effect on the money supply?
Question 15
A firm's \cost function is given by C = 100 + 2L + 3K, where C is the total \cost, L is labor, and K is capital. If the firm's current labor and capital inputs are 50 units and 200 units respectively, what is the total \cost?
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