POST UTME EKSU 2017 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A government wants to reduce its budget deficit by reducing its exp\enditure. If the government reduces its exp\enditure by 15% and the tax revenue increases by 10%, what is the new tax rate?
Question 2
The demand for a commodity is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, what is the percentage change in quantity demanded when the price increases by 10%?
Question 3
A consumer has the following utility function: U = 2x + 3y, where x and y are the quantities of goods X and Y, respectively. The prices of goods X and Y are $2 and $3, respectively. If the consumer has a budget of $10, what is the optimal bundle of goods X and Y?
Question 4
A firm faces the following demand curve: \( Q = 100 - 2P \). If the firm's marginal \cost is given by the equation \( MC = 10 + 2Q \), what is the firm's profit-maximizing price?
Question 5
A firm's demand curve is given by Q = 100 - 2P. If the firm's price is increased by 20%, what will be the percentage change in quantity demanded?
Question 6
A firm produces two goods, X and Y, u\sing two inputs, labor and capital. The production functions are given by Qx = 10L^0.5K^0.5 and Qy = 20L^0.5K^0.5, where Qx and Qy are the quantities of goods X and Y, respectively, and L and K are the quantities of labor and capital, respectively. If the firm has 100 units of labor and 200 units of capital, what is the total output of the firm?
Question 7
A country is experiencing a trade deficit. Which of the following policies would be most effective in reducing the trade deficit?
Question 8
A central bank is considering a monetary policy to reduce inflation. Which of the following instruments would be most effective in achieving this goal?
Question 9
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 and r = ₦200, calculate the optimal input combination that minimizes \costs, given a market price of ₦500 per unit of output.
Question 10
A firm has the following \cost function: C = 100 + 2Q + 0.5Q^2, where C is the total \cost and Q is the quantity produced. If the firm produces 100 units, what is the total \cost?
Question 11
A government wants to reduce its budget deficit by increa\sing taxes. If the government increases taxes by 10% and the tax revenue increases by 15%, what is the new tax rate?
Question 12
A firm is considering two different production processes to produce a certain good. Process A requires an initial investment of ₦100,000 and has a fixed \cost of ₦20,000 per unit produced. Process B requires an initial investment of ₦150,000 and has a fixed \cost of ₦15,000 per unit produced. If the firm expects to produce 10,000 units of the good, which production process should it choose?
Question 13
A firm has a \cost function given by the equation \( C = 100 + 2Q \). If the firm's revenue function is given by the equation \( R = 200 - 2Q \), what is the firm's profit-maximizing quantity?
Question 14
In a perfectly competitive market, if the demand for a commodity increases, what will happen to the equilibrium price?
Question 15
A country has a trade balance of $100 million and a current account deficit of $200 million. If the exchange rate is 1 USD = 100 Naira, what is the value of the trade balance in Naira?
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