POST UTME MADONNA UNIVERSITY 2024 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm's production function is given by Q(x) = 2x^2 + 5x. If the firm's \cost function is C(x) = 10x + 5, find the firm's profit-maximizing level of output.
Question 2
The money supply in an economy is influenced by the following factors: (a) Central bank's monetary policy, (b) Commercial banks' l\ending and borrowing activities, (c) Government's fiscal policy, (d) Foreign exchange rates. Which of the following is NOT a factor that influences the money supply?
Question 3
A firm's revenue function is given by R(x) = 2x^2 + 5x + 1. If the firm's marginal revenue is 10 when x = 3, what is the value of the firm's total revenue at x = 4?
Question 4
A firm's production function is given by Q = 2L^0.5 * K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the firm's current output?
Question 5
A country's balance of payments is given by BOP = X - M, where BOP is the balance of payments, X is the export revenue, and M is the import exp\enditure. If the country's export revenue is ₦200 billion and the import exp\enditure is ₦150 billion, what is the country's balance of payments?
Question 6
A consumer's utility function is given by 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 7
A firm's total revenue is given by the equation TR = 100Q - 2Q^2, where Q is the quantity sold. If the firm sells 20 units, what is the total revenue?
Question 8
A perfectly competitive market has the following characteristics: (a) A \single buyer and seller, (b) A \single product, (c) Free entry and exit, (d) A fixed price. Which of the following is NOT a characteristic of a perfectly competitive market?
Question 9
A consumer is faced with the following budget constraint: 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 income is ₦12 and the price of good X is ₦2 per unit, what is the maximum number of units of good Y that the consumer can buy?
Question 10
A central bank uses the money multiplier to determine the money supply in an economy. If the reserve requirement is 20% and the money multiplier is 10, what is the money supply if the central bank injects ₦100 million into the economy?
Question 11
A firm's demand for a raw material is given by the equation 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 12
A country's balance of payments is given by the 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. U\sing the concept of international trade, find the value of BOP if X = 150, M = 100, F = 50, and I = 75.
Question 13
The government of a country has decided to implement a policy of price control to reduce inflation. However, this policy has led to a shortage of essential goods. U\sing the concept of opportunity \cost, explain the trade-off between the reduction in inflation and the shortage of essential goods.
Question 14
A country's GDP is given by the equation Y = C + I + G + \( X - M \), where Y is the GDP, C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. U\sing the concept of national income accounting, find the value of Y if C = 100, I = 50, G = 75, X = 150, and M = 100.
Question 15
The National Income Accounting (NIA) system is used to measure the total income earned by a country's residents. Which of the following is NOT a component of NIA?
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