POST UTME LEAD CITY UNIVERSITY 2022 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and if the firm's budget constraint is given by 100L + 200K = ₦100,000, what is the firm's optimal level of labor?
Question 2
The government of a country wants to increase its GDP by 10% in a year. If the current GDP is ₦1,000,000,000, what is the total amount of investment required?
Question 3
A market is in equilibrium at a price of ₦20 and a quantity of 100 units. If the demand for the good increases by 20%, what is the new equilibrium price?
Question 4
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, then the minimum \cost of production is
Question 5
A firm has a production function Q = 2L^2 + 3K, where L is labor and K is capital. If the firm's \cost function is C = 10L + 20K, determine the profit-maximizing level of labor and capital.
Question 6
A consumer's utility function is given by U = 2x + 3y. The consumer's budget constraint is given by 2x + 3y = 12. What is the consumer's optimal consumption bundle?
Question 7
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost is MC = 10. What is the profit-maximizing price and quantity?
Question 8
A country's import demand function is given by M = 100 - 2P. The country's export supply function is given by X = 50 + P. What is the equilibrium price and quantity?
Question 9
A firm has a demand function Qd = 100 - 2P and a supply function Qs = 50 + 3P. Determine the deadweight loss of a tax of ₦10 per unit.
Question 10
A firm is considering two different production processes. Process A has a fixed \cost of ₦1000 and a variable \cost of ₦10 per unit, while Process B has a fixed \cost of ₦500 and a variable \cost of ₦20 per unit. If the firm produces 100 units, what is the total \cost of production for each process?
Question 11
A firm has a production function given by Q = 2L + 3K, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm has 10 units of labor and 5 units of capital, what is the quantity produced?
Question 12
Determine the elasticity of demand for a firm that experiences a 10% decrease in price, resulting in a 5% increase in quantity demanded.
Question 13
A country's balance of payments account is given by the following equations: X = 100 + 2Y, M = 50 + 3Y, where X is exports and M is imports. Determine the equilibrium value of Y.
Question 14
A firm's demand curve is given by Q = 100 - 2P. If the price elasticity of demand is -2, what is the price elasticity of supply?
Question 15
A country's GDP is given by the equation: GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. Determine the value of GDP if C = ₦1000, I = ₦200, G = ₦300, X = ₦400, and M = ₦500.
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