POST UTME IGBINEDION UNIVERSITY 2021 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's marginal revenue is ₦50, calculate the price elasticity of demand.
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are 4 and 9 respectively, what is the marginal product of labor?
Question 3
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor and K is capital. If the firm's labor and capital are 10 and 20 respectively, calculate the opportunity \cost of an additional unit of capital.
Question 4
The concept of monopoly is a market structure in which a \single firm produces a unique product. Which of the following is a characteristic of monopoly?
Question 5
A government is considering a tax on a particular good. The supply curve of the good is given by Q = 100 - 2P, and the demand curve is given by Q = 200 - 5P. If the government imposes a tax of ₦10 per unit on the good, what will be the new equilibrium price and quantity?
Question 6
A firm's marginal revenue (MR) and marginal \cost (MC) curves are given by MR = 100 - 2Q and MC = 20 + Q, respectively. If the firm is currently producing 10 units of output, what is the firm's profit-maximizing quantity?
Question 7
A government is considering a tax on a particular good. The demand for the good is given by Q = 100 - 2P, and the supply of the good is given by Q = 2P. What is the optimal tax rate?
Question 8
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 = 10 and r = 20, calculate the firm's optimal input bundle (L, K) u\sing the Hotelling's Lemma.
Question 9
The elasticity of demand for a commodity is given by the formula \( eta = \frac{P}{Q} \frac{dQ}{dP} \). If the price of the commodity increases by 10% and the quantity demanded decreases by 5%, what is the elasticity of demand?
Question 10
The money market is a market where financial assets such as bonds, stocks, and currencies are traded. Which of the following is a characteristic of the money market?
Question 11
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing price and quantity.
Question 12
A firm is producing a good with a production function \( Q = 2L^2 + 3K^2 \), where ( L ) is labor and ( K ) is capital. If the firm is currently producing 100 units of the good with 10 units of labor and 5 units of capital, what is the average product of labor?
Question 13
The balance of payments (BOP) is a statistical statement that summarizes a country's economic transactions with the rest of the world over a specific period of time. Which of the following is a component of the BOP?
Question 14
The law of diminishing marginal utility states that as the quantity of a good consumed increases, the marginal utility derived from each additional unit decreases. Which of the following is a consequence of this law?
Question 15
The concept of scarcity is a fundamental economic concept that refers to the limited availability of resources. Which of the following is a consequence of scarcity?
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