POST UTME MOUNTAIN TOP UNIVERSITY 2021 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
The government of Nigeria has introduced a new policy to increase the production of rice. The policy involves a 20% increase in the price of rice. Assuming the demand for rice is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price, and the initial price is ₦100, calculate the new quantity demanded.
Question 2
The government of Nigeria has introduced a new policy to increase the production of wheat. The policy involves a 20% increase in the price of wheat. Assuming the demand for wheat is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price, and the initial price is ₦100, calculate the new quantity demanded.
Question 3
A consumer's budget constraint is given by 2Y + 3X = 100, where Y is the quantity of good Y and X is the quantity of good X. If the consumer's indifference curve is given by U = 2Y + X, what is the consumer's optimal bundle?
Question 4
Agricultural development in Nigeria is hindered by the lack of access to credit facilities by farmers. Which of the following policies would be most effective in addres\sing this issue?
Question 5
The government of Nigeria has introduced a new tax policy to increase revenue. The policy involves a 10% increase in the value-added tax (VAT) rate. Assuming the demand for a product is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price, and the initial VAT rate is 5%, calculate the new price at which the quantity demanded will be 80 units.
Question 6
A firm is producing a good with a production function of Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm is currently producing 100 units of output, what is the total \cost of producing one more unit of output?
Question 7
A monopolistically competitive firm faces a demand curve given by P = 100 - 2Q. The firm's marginal \cost curve is MC = 20 + 5Q. If the firm produces 20 units of output, what is the profit-maximizing price?
Question 8
A firm is producing a good with a production function of Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm is currently producing 100 units of output, what is the opportunity \cost of producing one more unit of output?
Question 9
A firm's demand function is given by \( Q = 100 - 2P \). If the firm's marginal \cost is ₦20, what is the profit-maximizing price?
Question 10
A farmer in Nigeria produces wheat, which is used to make bread. The production function for wheat is given by Q = 1000L^\( 1/2 \)K^\( 1/2 \), where Q is the quantity of wheat produced, L is the amount of labor used, and K is the amount of capital used. If the farmer uses 100 units of labor and 200 units of capital, calculate the quantity of wheat produced.
Question 11
The central bank of Nigeria has increased the reserve requirement for commercial banks. What is the likely effect of this policy on the money supply?
Question 12
A country's economic growth rate is given by the following equation: g = 2 + 0.5Y - 0.1N, where g is the growth rate, Y is the GDP, and N is the net foreign income. If the country's GDP (Y) is $1000 and net foreign income (N) is $50, what is the country's economic growth rate (g) in terms of %?
Question 13
A country's balance of payments (BOP) accounts are given by the following equations: X = 100 + 0.5Y, M = 50 + 0.2Y, and N = 20 + 0.1Y. If the country's exports (X) and imports (M) are $100 and $50, respectively, and the country's net foreign income (N) is $20, what is the country's current account balance (CA) in terms of Y?
Question 14
A monopolist is producing a good with a demand curve of P = 100 - 2Q and a marginal \cost curve of MC = 20. If the firm is currently producing 20 units of output, what is the profit-maximizing price?
Question 15
A firm in Nigeria produces a product u\sing labor and capital. The production function for the product is given by Q = 1000L^\( 1/2 \)K^\( 1/2 \), where Q is the quantity produced, L is the amount of labor used, and K is the amount of capital used. If the firm uses 100 units of labor and 200 units of capital, calculate the marginal product of labor.
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