POST UTME MADONNA UNIVERSITY 2019 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm produces two goods, x and y, u\sing two inputs, labor (L) and capital (K). The production function is given by x = 2L^0.5K^0.5 and y = L^0.5K^0.5. If the firm has 100 units of labor and 200 units of capital, what is the total output of the firm?
Question 2
A firm's revenue function is given by R = 2x + 3x^2, where R is revenue and x is the quantity sold. If the firm sells 10 units, what is its revenue?
Question 3
A government is considering a policy to reduce the poverty rate in the country. Which of the following policies is most likely to achieve this goal?
Question 4
Suppose a firm is operating in a perfectly competitive market with a downward-sloping demand curve. If the firm increases its output from 100 units to 120 units, and the price falls from ₦100 to ₦90, what is the price elasticity of demand?
Question 5
A firm produces two goods, A and B, u\sing two inputs, labor (L) and capital (K). The production functions are given by Q_A = 2L + 3K and Q_B = 4L + 2K. If the firm has 10 units of labor and 8 units of capital, how many units of good A should it produce?
Question 6
A firm is operating on a long-run average \cost curve. If the firm experiences a decrease in the price of a key input, what will happen to its long-run average \cost curve?
Question 7
A consumer has the following utility function: U(x, y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle?
Question 8
A consumer's indifference curve is represented by the equation u(x, y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle of x and y?
Question 9
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 given by 2x + 3y = 12, and the prices of the two goods are $2 and $3 respectively, what is the consumer's optimal consumption bundle?
Question 10
A firm's production function is given by Q = 2L + 3K. If the firm's \cost function is C = 10L + 20K, what is the firm's profit-maximizing level of labor?
Question 11
A monopolist faces a demand curve given by Q = 100 - 2P. If the firm's marginal revenue is ₦50, what is the price at which the firm will produce 60 units?
Question 12
A firm's \cost function is given by C(Q) = 2Q^2 + 10Q. If the firm produces 10 units of output, what is its total \cost?
Question 13
A country's GDP is given by the equation: GDP = C + I + G + \( X - M \). If the country's consumption function is C = 100 + 0.8Y, its investment function is I = 50 + 0.2Y, its government sp\ending function is G = 200, its export function is X = 500, and its import function is M = 300, what is the country's GDP?
Question 14
The demand for a product is given by the equation Qd = 100 - 2P, where Qd 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 15
A government is considering a policy to reduce poverty in a country. Which of the following is a characteristic of this policy?
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