POST UTME MOUNTAIN TOP UNIVERSITY 2018 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm's production function is given by the equation Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor, and K is the capital. If the firm wants to produce 100 units, and the wage rate is 5, what is the optimal level of capital (K)?
Question 2
A firm's \cost function is given by TC = 10 + 2Q + 0.5Q^2, where TC is total \cost and Q is output. If the firm's current output is Q = 4, what is the firm's current total \cost?
Question 3
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's current price is P = 20, what is the firm's current quantity demanded?
Question 4
A country's trade balance is given by the equation TB = X - M, where TB is the trade balance, X is the exports, and M is the imports. If the country's exports are 100 billion naira and its imports are 80 billion naira, what is the trade balance?
Question 5
A country's GNP is calculated as the sum of its GDP plus its net factor income from abroad. If a country's GDP is ₦100 billion and its net factor income from abroad is ₦20 billion, what is its GNP?
Question 6
The Nigerian government has introduced a new tax policy to increase revenue. The policy includes a 10% increase in income tax and a 5% increase in value-added tax. If a firm's income is ₦1,000,000 and its value-added tax is ₦200,000, what is the firm's new tax liability?
Question 7
A firm's demand for a good is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the supply of the good is given by the equation Qs = 2P - 100, what is the elasticity of demand?
Question 8
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm increases its labor from 100 units to 120 units, and its capital from 100 units to 120 units, what is the percentage change in output?
Question 9
A firm has a production function given by Q = 2L + 3K, where Q is the output, L is the labor, and K is the capital. If the price of labor is $10 and the price of capital is $20, what is the \cost-minimizing input combination?
Question 10
A firm's budget constraint is given by the equation Y = C + I + G, where Y is the income, C is the consumption, I is the investment, and G is the government sp\ending. If the firm's income is 100 billion naira, its consumption is 50 billion naira, its investment is 20 billion naira, and its government sp\ending is 30 billion naira, what is the government sp\ending as a percentage of the income?
Question 11
A firm is producing a good with a total revenue of ₦2,000 and a total \cost of ₦1,800. If the firm's marginal revenue is ₦150 and its marginal \cost is ₦120, what is the firm's profit?
Question 12
A country's GDP is given by 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. If the country's current GDP is 1000, and the values of the other variables are C = 200, I = 100, G = 50, X = 150, and M = 50, respectively, what is the country's current consumption?
Question 13
A monopolist faces a market demand curve given by Qd = 100 - 2P and a marginal revenue curve given by MR = 20 - 2Q. What is the profit-maximizing quantity?
Question 14
A country's GDP deflator is given by GDP deflator = \( nominal GDP / real GDP \) x 100. If the country's current nominal GDP is 1000, and the value of the other variable is real GDP = 800, respectively, what is the country's current GDP deflator?
Question 15
A country's GNP is given by GNP = GDP + (net factor income from abroad). If the country's current GNP is 1200, and the value of the other variable is GDP = 1000, respectively, what is the country's current net factor income from abroad?
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