POST UTME ELIZADE UNIVERSITY 2019 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm is producing a good u\sing a production function Q = 2L^0.5K^0.5. If the price of labor \( P_L \) is ₦100 and the price of capital \( P_K \) is ₦200, what is the value of the marginal product of labor (MPL) when L = 4 and K = 9?
Question 2
A firm's demand for labor is given by the equation Q = 100L^\( -1/2 \), where Q is the quantity of labor demanded and L is the wage rate. If the wage rate is ₦100,000, how many units of labor will the firm demand?
Question 3
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor and H is capital. If the firm increases labor from 4 to 9 units, and capital from 9 to 16 units, what is the percentage change in output?
Question 4
The demand for a product is given by Q = 100 - 2P. If the price elasticity of demand is -2, what is the value of the price elasticity of demand when the price is ₦50?
Question 5
A country exports 100 units of a good at a price of ₦100 per unit and imports 50 units of another good at a price of ₦200 per unit. What is the balance of payments?
Question 6
A firm is producing a good u\sing a production function Q = 2L^0.5K^0.5. If the price of labor \( P_L \) is ₦100 and the price of capital \( P_K \) is ₦200, what is the value of the marginal product of capital (MPC) when L = 4 and K = 9?
Question 7
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor and H is capital. If the firm increases labor from 4 to 9 units, and capital from 9 to 16 units, what is the percentage change in output?
Question 8
Consider a country with a fixed exchange rate of ₦5 per US dollar. If the country's GDP is ₦10 trillion and its imports are ₦2 trillion, what is the balance of payments surplus or deficit?
Question 9
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm increases its labor input from 100 units to 120 units and keeps the capital input cons\tant at 100 units, what is the new output?
Question 10
Consider a perfectly competitive market with 5 firms producing a homogeneous product. If each firm increases its production by 10% in response to a 10% decrease in market price, what will be the new equilibrium price and quantity?
Question 11
A country is experiencing a recession due to a decrease in aggregate demand. Which of the following policies would be most effective in stimulating economic growth?
Question 12
The supply of a product is given by Q = 2P + 100. If the price elasticity of supply is 2, what is the value of the price elasticity of supply when the price is ₦50?
Question 13
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \), where BOP is the balance of payments, X is exports, M is imports, F is foreign investment and I is domestic investment. If the country's exports increase by 10%, imports decrease by 5%, foreign investment increases by 15% and domestic investment decreases by 10%, what is the percentage change in the balance of payments?
Question 14
An increase in the price of a good leads to a decrease in the quantity demanded. If the demand curve is inelastic, what will happen to the total revenue of the firm?
Question 15
A monopolist faces a demand curve given by P = 100 - 2Q, where P is price and Q is quantity. The firm's marginal \cost is given by MC = 10 + 2Q. What is the profit-maximizing quantity and price?
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