POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2019 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
The government of Nigeria has introduced a policy to increase the production of rice in the country. The policy involves providing subsidies to farmers who produce rice. If the government provides a subsidy of ₦500 per bag of rice, and the price of rice is ₦2000 per bag, what is the new price of rice after the subsidy?
Question 2
A consumer has a budget of ₦1000 and faces the following prices for two goods: Good X \costs ₦200 and Good Y \costs ₦300. If the consumer buys 2 units of Good X, how much money is left for Good Y?
Question 3
A country's balance of payments is in equilibrium when its current account is in surplus by ₦100 billion and its capital account is in deficit by ₦50 billion. What is the overall balance of payments position?
Question 4
The demand for a commodity is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, what is the percentage change in quantity demanded when the price increases by 10%?
Question 5
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its output from Q1 to Q2, what happens to its average revenue (AR)?
Question 6
A consumer has a utility function U(X,Y) = 2X + 3Y. If the prices of X and Y are ₦2 and ₦3 respectively, and the consumer has a budget of ₦15, how many units of X will the consumer buy?
Question 7
A firm is operating in a perfectly competitive market. The firm's supply function is given by Q = 100 - 2P, where P is the price of the firm's product. If the demand for the firm's product is given by Q = 200 - 4P, what is the equilibrium price and quantity of the firm's product?
Question 8
Consider a firm with a production function Q = 3L^0.5K^0.5. If the firm's current input prices are w = ₦150 and r = ₦300, and the current output price is p = ₦600, calculate the firm's optimal input combination u\sing the Hotelling's Lemma. Assume that the firm's objective is to maximize its profit.
Question 9
A government imposes a tax on a good, cau\sing the supply curve to shift to the left. What is the effect on the equilibrium price and quantity of the good?
Question 10
A firm has a total revenue function given by TR = 100x - 2x^2, where x is the number of units produced and sold. If the firm's total \cost function is given by TC = 50x + 100, find the profit-maximizing level of production.
Question 11
A country's GDP is ₦100 billion, its imports are ₦20 billion, and its exports are ₦15 billion. What is its GDP at market price?
Question 12
A government is considering a tax on a particular good to reduce its consumption. The demand function for the good is given by Q = 150 - 3P, where Q is the quantity demanded and P is the price. The supply function is given by Q = 3P. If the government imposes a tax of ₦75 per unit on the good, what will be the new equilibrium price and quantity?
Question 13
The government of a country is considering a policy to increase agricultural production. The production function for a particular crop is given by the equation Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. 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, what is the total revenue?
Question 14
A perfectly competitive market has a downward-sloping demand curve and a horizontal supply curve. If the market price falls from ₦100 to ₦80, what is the effect on the quantity supplied?
Question 15
A central bank increases the money supply in an economy. What will happen to the price level?
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