POST UTME ELIZADE UNIVERSITY 2017 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A perfectly competitive market has the following characteristics: (i) A large number of firms producing a homogeneous product, (ii) Free entry and exit, (iii) Perfect knowledge of market conditions, and (iv) Price determined by the intersection of demand and supply curves. Which of the following is NOT a characteristic of a perfectly competitive market?
Question 2
A government is considering a policy to increase the production of a certain crop. The supply curve for the crop is given by the equation Q = 100 + 2P, where P is the price per unit. If the government wants to increase production by 10 units, what should be the new price per unit?
Question 3
A firm's production function can be represented by the equation Q = f(K, L), where Q is output, K is capital, and L is labor. If the marginal product of labor (MPL) is given by MPL = ∂Q/∂L = 2L, what is the value of the marginal product of capital (MPK) if the firm is currently u\sing 10 units of labor?
Question 4
A country's balance of payments is given by the equation BOP = X - M. If the country's exports are ₦500 billion and imports are ₦400 billion, what is the country's balance of payments?
Question 5
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP is ₦100 billion, consumption is ₦30 billion, investment is ₦20 billion, government sp\ending is ₦15 billion, exports are ₦25 billion, and imports are ₦10 billion, what is the value of the trade balance?
Question 6
A firm is considering a new investment project with the following cash flows: Year 1: ₦100,000; Year 2: ₦120,000; Year 3: ₦150,000. If the firm's \cost of capital is 10%, what is the net present value of the project?
Question 7
The price elasticity of demand for a normal good is
Question 8
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 100 units and the price of labor is ₦10 per unit, what is the minimum \cost of production?
Question 9
A firm's \cost function is given by the equation TC = 100 + 2Q + 0.5Q^2, where TC is the total \cost and Q is the quantity produced. If the firm produces 20 units, what is the total \cost?
Question 10
A country's balance of payments is given by the equation BOP = X - M + \( F - I \), where X is exports, M is imports, F is foreign investment, and I is foreign debt. If the country's balance of payments is ₦10 billion, exports are ₦25 billion, imports are ₦15 billion, foreign investment is ₦5 billion, and foreign debt is ₦3 billion, what is the value of the current account balance?
Question 11
A consumer's indifference curve is given 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, what is the consumer's optimal bundle of x and y?
Question 12
A central bank can increase the money supply by
Question 13
A country's GNP is given by the equation GNP = GDP + (net factor income from abroad). If the country's GDP is ₦100 billion, and the net factor income from abroad is ₦10 billion, what is the country's GNP?
Question 14
The demand for a product 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 cons\tant and equal to 2, what is the price at which the quantity demanded is 60?
Question 15
Consider a small open economy with a perfectly competitive market for a particular good. The demand for the good is given by the inverse demand function \( p = 100 - 2q \), where (p) is the price and (q) is the quantity demanded. The supply of the good is given by the inverse supply function \( p = 50 + 2q \). Assuming that the economy is initially in equilibrium, what is the change in the equilibrium quantity demanded of the good if the government imposes a tax of ₦10 per unit on the good?
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