POST UTME LASU 2018 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A country's national income is given by N = W + I + \( G - T \), where N is the national income, W is the wage income, I is the investment, G is the government exp\enditure and T is the tax revenue. If the wage income is ₦50 billion, the investment is ₦20 billion, the government exp\enditure is ₦30 billion and the tax revenue is ₦10 billion, what is the national income?
Question 2
A consumer has the following utility function: U(x, y) = 2x + 3y. If the consumer's income is ₦100 and the prices of x and y are ₦20 and ₦30 respectively, what is the consumer's optimal bundle of x and y?
Question 3
U\sing the concept of opportunity \cost, explain why a country may choose to import a good even if it can be produced domestically.
Question 4
A firm is producing a good u\sing two inputs, labor and capital. The production function is given by Q = 2L^0.5K^0.5. If the firm's output is 100 units and the price of labor is ₦50 per unit, what is the firm's optimal level of capital?
Question 5
A consumer's indifference curve is given by the equation U = 2x + 3y. If the consumer's budget constraint is 2x + 3y = ₦100, and if the price of good x is ₦20 per unit and the price of good y is ₦30 per unit, what is the optimal level of good x (x) that the consumer should purchase?
Question 6
A consumer's budget constraint is given by the equation 2x + 3y = 12, where x is the number of units of good X and y is the number of units of good Y. If the consumer's utility function is given by the equation U(x, y) = 2x + 3y, what is the consumer's optimal bundle of goods?
Question 7
A firm's demand function is given by \( Q = 100 - 2P \), where Q is the quantity demanded and P is the price. If the firm's revenue function is given by \( R = PQ \), what is the firm's marginal revenue function?
Question 8
A firm is producing a good with a total revenue of ₦1,500 and a total \cost of ₦1,200. The price elasticity of demand for the good is 2. What is the price elasticity of supply?
Question 9
A firm's \cost function is given by C = 2L + 3K. If the firm's revenue function is given by R = 4L + 5K, and if the firm's profit function is given by π = R - C, what is the optimal level of labor (L) that the firm should employ?
Question 10
A consumer has a budget of ₦1000 and faces the following prices: good A \costs ₦200, good B \costs ₦300, and good C \costs ₦400. U\sing the budget constraint, find the consumer's optimal consumption bundle.
Question 11
A firm's demand function is given by Q = 100 - 2P + 3X, where Q is the quantity demanded, P is the price, and X is the income. If the price is ₦50 and the income is ₦10,000, what is the quantity demanded?
Question 12
A firm is operating on a long-run average \cost curve. If the firm's output increases from 100 units to 200 units, and the average \cost decreases from ₦100 to ₦80, what can be concluded about the firm's returns to scale?
Question 13
A firm is producing a good with a marginal revenue of ₦120 and a marginal \cost of ₦100. What is the profit-maximizing quantity of the good?
Question 14
A monopolist is producing a good with a marginal revenue of ₦100 and a marginal \cost of ₦80. What is the profit-maximizing quantity of the good?
Question 15
The Nigerian government has implemented a policy to increase the production of rice in the country. The policy includes providing subsidies to farmers and increa\sing the importation of rice seeds. What is the likely effect of this policy on the supply of rice in Nigeria?
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