POST UTME MOUNTAIN TOP UNIVERSITY 2020 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company in Nigeria produces 500 units of a product per day. The \cost of production is ₦1,000 per unit. If the selling price is ₦1,200 per unit, what is the profit per unit?
Question 2
The Nigerian government implemented a policy to increase the production of rice in the country. What is the likely effect of this policy on the price of rice?
Question 3
A country's GDP can be calculated u\sing the following formula: GDP = C + I + G + \( X - M \). If the country's consumption (C) is ₦500 billion, investment (I) is ₦200 billion, government sp\ending (G) is ₦300 billion, exports (X) are ₦400 billion, and imports (M) are ₦200 billion, what is the country's GDP?
Question 4
A firm is considering two production techno\logies: one that requires an initial investment of ₦100,000 and produces 100 units of output per day, and another that requires an initial investment of ₦200,000 and produces 200 units of output per day. If the firm expects to sell each unit of output for ₦500, which techno\logy should it choose?
Question 5
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the firm wants to increase output by 20% and labor by 10%, what is the required percentage increase in capital?
Question 6
A country's GDP is calculated as the sum of all final goods and services produced within its borders. Which of the following is NOT included in the calculation of a country's GDP?
Question 7
A government imposes a tax of ₦10 per unit of output on a firm that produces 100 units of output per day. If the firm's marginal \cost of production is ₦20 per unit and its selling price is ₦500 per unit, what is the deadweight loss of the tax?
Question 8
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor (L) increases from 4 to 6 units, and the firm's capital (K) remains cons\tant at 9 units, what is the percentage change in output (Q)?
Question 9
A country's GDP deflator is given by the formula GDP deflator = \( GDP at current prices / GDP at cons\tant prices \) x 100. If the GDP at current prices is 1000 and the GDP at cons\tant prices is 800, what is the GDP deflator?
Question 10
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the firm wants to increase output by 20% and labor by 10%, what is the required percentage increase in capital?
Question 11
A firm's demand curve is given by Q = 100 - 2P. If the firm's marginal revenue (MR) curve is given by MR = -2, and the firm's marginal \cost (MC) curve is given by MC = 5, what is the firm's optimal price?
Question 12
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are 4 and 9, respectively, what is the firm's output?
Question 13
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, what is the total output of the firm?
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 price at which the quantity demanded is 60?
Question 15
A government budget constraint is given by G = 0.2Y + 100. If the government's tax revenue is ₦1,000,000 and its exp\enditure is ₦1,500,000, what is the government's budget deficit?
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