POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2024 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
Question 2
A country's GDP is given by the equation Y = C + I + G + \( X - M \). If the country's current GDP is 100 billion, consumption is 30 billion, investment is 20 billion, government sp\ending is 15 billion, exports are 25 billion, and imports are 10 billion, calculate the country's savings rate.
Question 3
Suppose the demand for a product is given by the inverse demand function \( p = 100 - 2q \), where (p) is the price and (q) is the quantity demanded. If the price elasticity of demand is defined as \( E_d = \frac{p}{q} cdot \frac{dq}{dp} \), calculate the price elasticity of demand at the point where \( q = 20 \).
Question 4
The supply curve for a product is given by the equation Qs = 2P + 10, where Qs is the quantity supplied and P is the price. If the price elasticity of supply is 2, what is the percentage change in quantity supplied when the price increases by 10%?
Question 5
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will happen to its total revenue?
Question 6
A country's demand for a good is given by the equation Qd = 100 - 2P, where P is the price of the good. If the price of the good is $20, what is the quantity demanded?
Question 7
A monopolistically competitive firm faces a demand curve given by Qd = 100 - 2P. If the firm produces at a level of Q = 60, what is the price elasticity of demand?
Question 8
A firm is producing a good with a production function \( Q = 10K^0.5L^0.5 \), where (Q) is the output, (K) is the capital, and (L) is the labor. If the firm is currently producing at a point where \( K = 4 \) and \( L = 9 \), what is the marginal product of capital?
Question 9
A firm's demand curve is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the price elasticity of demand is -2, what is the percentage change in quantity demanded when the price increases by 10%?
Question 10
A government imposes a tax on a firm's output, cau\sing the firm's supply curve to shift to the left. If the firm's original supply curve was Q = 100 + 2P and the tax is $5 per unit, what is the new supply curve?
Question 11
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^\( 1/2 \)H^\( 1/2 \). If the firm's current input prices are w_L = 10 and w_H = 20, and the current output price is p = 50, calculate the firm's optimal input bundle (L, H) u\sing the Lagrange method. What is the value of the Lagrange multiplier?
Question 12
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 2x + 3y = $100 and the price of good x is $5, what is the optimal quantity of good x?
Question 13
Consider a small open economy with a fixed exchange rate. The country's trade balance is in surplus, and the current account is also in surplus. What is the likely effect on the country's GDP?
Question 14
Consider a firm with a production function Q = 2L^\( 1/2 \)H^\( 1/2 \). If the firm's current input prices are w_L = 10 and w_H = 20, and the current output price is p = 50, calculate the firm's optimal input bundle (L, H) u\sing the Lagrange method. What is the value of the Lagrange multiplier?
Question 15
A country's balance of payments account 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 are $100 billion, imports are $120 billion, foreign investment is $50 billion, and domestic investment is $30 billion, what is the balance of payments?
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