POST UTME IGBINEDION UNIVERSITY 2022 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
The production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm is currently producing 100 units of output, then the opportunity \cost of one more unit of labor is
Question 2
A monopolist faces a demand curve \( P = 100 - 2Q \) and a marginal \cost curve \( MC = 20 \). If the firm's current output is Q = 20, what is the firm's current price?
Question 3
A firm's total revenue (TR) is given by TR = 100x - 2x^2, where x is the number of units sold. If the firm's marginal revenue (MR) is 100 - 4x, find the value of x at which MR = 0.
Question 4
The opportunity \cost of producing one more unit of a good is the value of the next best alternative that must be given up. This concept is closely related to the law of increa\sing opportunity \cost, which states that as the production of a good increases, the opportunity \cost of producing one more unit also increases. What is the opportunity \cost of producing one more unit of a good when the law of increa\sing opportunity \cost is in effect?
Question 5
The following table shows the data for a particular industry in Nigeria. If the industry is currently producing 100 units of output, then the total product of labor is
Question 6
A country's balance of payments (BOP) is given by BOP = X - M, where X is the value of exports and M is the value of imports. If the country's trade deficit is $100 million and the value of exports is $500 million, find the value of imports.
Question 7
A firm's production function is given by Q = 2L + 3K. The firm's \cost function is C(L, K) = 2L + 3K. Find the firm's profit-maximizing level of labor and capital.
Question 8
Agricultural development in Nigeria has been hindered by the lack of access to credit for small-scale farmers. Which of the following government initiatives is most likely to address this issue?
Question 9
A monopolist is producing a product with a marginal revenue (MR) of ₦100 and a marginal \cost (MC) of ₦80. What is the profit-maximizing quantity?
Question 10
A firm's demand curve is given by Q = 100 - 2P. The firm's \cost function is C(Q) = 2Q^2 + 10Q. Find the firm's profit-maximizing price and quantity.
Question 11
A government is considering a tax on a good to raise revenue. The government's budget constraint is given by B = T + P, where B is the budget, T is the tax revenue, and P is the price of the good. What is the effect of the tax on the price of the good?
Question 12
A country's inflation rate is given by the equation π = \( M2/P \) - 1, where π is the inflation rate, M2 is the money supply, and P is the price level. If the money supply is $100 billion and the price level is $50, what is the inflation rate?
Question 13
The scarcity of land in Nigeria has led to an increase in the price of agricultural products. This is an example of a market structure where a \single buyer or seller has significant influence over the market price. What type of market structure is this?
Question 14
A firm is considering two production processes. Process A has a fixed \cost of $10,000 and a variable \cost of $5 per unit. Process B has a fixed \cost of $20,000 and a variable \cost of $3 per unit. If the firm produces 10,000 units, what is the total \cost of each process?
Question 15
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will happen to its revenue?
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