POST UTME ELIZADE UNIVERSITY 2022 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm operating under perfect competition faces a market demand curve that is downward-sloping. What is the shape of the firm's marginal revenue (MR) curve?
Question 2
A firm is considering investing in a new project. The project requires an initial investment of ₦100,000 and is expected to generate a revenue of ₦120,000 per year for 5 years. The firm's \cost of capital is 10% per year. What is the net present value (NPV) of the project?
Question 3
A consumer's utility function is given by the equation U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 10x + 5y = 50, what is the optimal combination of x and y?
Question 4
A monopolist faces a demand curve given by Q = 100 - 2P. The marginal revenue function is MR = 50 - 2Q. What is the price at which the monopolist maximizes profits?
Question 5
Consider a firm that faces a demand curve given by \( Q = 100 - 2P \) and a marginal \cost curve given by \( MC = 10 + 2Q \). If the firm produces 20 units, what is the price it will charge?
Question 6
A monopolist faces a demand curve given by \( Q = 100 - 2P \) and a marginal \cost curve given by \( MC = 10 + 2Q \). If the firm produces 20 units, what is the price it will charge?
Question 7
Consider a firm that produces two goods, A and B. The production function for good A is given by \( Q_A = 10L_A + 5K_A \) and for good B is given by \( Q_B = 8L_B + 3K_B \). If the firm has 10 units of labor and 5 units of capital, how many units of good A will it produce?
Question 8
A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production function for good X is given by X = 2L^0.5K^0.5, while the production function for good Y is given by Y = 3L^0.25K^0.75. If the firm has 100 units of labor and 200 units of capital, and it wants to maximize the total output \( X + Y \), what is the optimal allocation of labor and capital between the two goods?
Question 9
A country's GNP is ₦150 billion, its imports are ₦30 billion, and its exports are ₦35 billion. What is its GDP at factor \cost?
Question 10
A firm's total revenue (TR) is given by the equation TR = 1000 + 20Q - 0.5Q^2, where Q is the quantity sold. If the firm sells 100 units, what is the marginal revenue?
Question 11
A firm's \cost function is given by the equation C = 100 + 20Q + 0.5Q^2, where Q is the quantity produced. If the firm produces 50 units, what is the total \cost?
Question 12
A government is considering implementing a tax on a particular good. The supply function for the good is given by Q = 100 + 2P, where Q is the quantity supplied and P is the price. The demand function for the good is given by Q = 100 - 2P. If the government imposes a tax of ₦10 per unit on the good, what will be the new equilibrium price and quantity?
Question 13
A firm is producing a product with a total revenue (TR) of ₦1,000,000 and a total \cost (TC) of ₦800,000. If the firm's profit-maximizing output is 100 units, what is the opportunity \cost of producing one more unit of the product?
Question 14
A monopolist is facing a demand curve with the following equation: P = 100 - 2Q. If the firm's marginal \cost (MC) is ₦20, what is the profit-maximizing quantity of the product?
Question 15
A consumer is faced with the following budget constraint: 2x + 3y = 12. If the price of good x is ₦2 and the price of good y is ₦3, what is the consumer's optimal bundle of goods?
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