POST UTME LEAD CITY UNIVERSITY 2020 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 10% and 20%, respectively, what will be the percentage change in output?
Question 2
A firm is producing a good with a production function Q = 2L^0.5K^0.5. If the firm's current inputs are L = 16 and K = 9, what is the firm's current output level?
Question 3
The Central Bank of Nigeria (CBN) uses the following instruments to implement monetary policy:
Question 4
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 10% and 20%, respectively, what will be the percentage change in output?
Question 5
Consider a closed economy with a \single good and service. If the government imposes a lump-sum tax on households, what will be the effect on the economy's GDP?
Question 6
The diagram below shows the supply and demand curves for a commodity. If the price of the commodity is P2, what is the equilibrium quantity?
Question 7
The following graph shows the demand and supply curves for a good. What is the equilibrium price of the good?
Question 8
A firm has a total revenue function given by TR = 100Q - 2Q^2. If the firm's total \cost function is TC = 50Q + 10Q^2, calculate the profit-maximizing quantity and price.
Question 9
A firm's revenue function is given by R(x) = 2x^2 + 5x + 1, where x is the number of units produced. If the firm's marginal revenue function is MR(x) = 4x + 5, find the value of x that maximizes revenue.
Question 10
A central bank is considering an open market operation to increase the money supply in the economy. If the central bank buys $100 million worth of government securities from commercial banks, what is the expected increase in the money supply?
Question 11
A firm has a production function given by Q = 2L + 3K, where L is labor and K is capital. If the firm's \cost function is C = 10L + 20K, calculate the marginal product of labor and the marginal product of capital.
Question 12
A firm's demand curve is given by Qd = 100 - 2P, and the supply curve is given by Qs = 2P - 50. If the price is initially set at 25, what will be the equilibrium quantity?
Question 13
The diagram below shows the production possibilities frontier (PPF) for a country. If the country is currently producing at point A, what is the opportunity \cost of producing one more unit of good X?
Question 14
A monopolistically competitive firm faces a demand curve with a cons\tant elasticity of -2. If the firm's marginal revenue (MR) is 100, and its marginal \cost (MC) is 80, what is the firm's optimal output level?
Question 15
A firm is producing a good u\sing the production function Q = 3L^0.5K^0.5. If the firm wants to increase its output by 25% and the labor is increased by 15%, what is the required percentage increase in capital?
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