POST UTME MOUNTAIN TOP UNIVERSITY 2024 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm's \cost function is given by C(q) = 2q^2 + 5q + 10. If the firm produces 5 units of output, what is the total \cost?
Question 2
A firm is operating on the supply curve. If the firm experiences a 10% increase in input prices, what will happen to its supply?
Question 3
A firm is operating on the long-run average \cost curve. If the firm experiences a 20% increase in output, what will happen to its average \cost?
Question 4
A country's GDP is given by the equation Y = C + I + G + \( X - M \). If the country's consumption is 100, investment is 50, government sp\ending is 200, exports are 300, and imports are 100, what is the country's GDP?
Question 5
An increase in the price of a commodity leads to a decrease in its demand. If the demand for the commodity is inelastic, what will happen to the total revenue of the producer?
Question 6
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the market price is P = 15, find the profit-maximizing quantity.
Question 7
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current output is 16 units and the number of labor units is 4, how many capital units are required?
Question 8
A firm is producing a good with the following production function: Q = 2L^2 + 3K^2. If the price of labor increases by 20% and the price of capital increases by 15%, what is the new \cost-minimizing input combination?
Question 9
A farmer in Nigeria decides to cultivate maize on a 10-hectare farm. If the production function is given by Q = 1000x^0.5, where Q is the quantity of maize produced and x is the area of land cultivated, what is the farmer's output?
Question 10
An increase in the price of a good leads to a decrease in the quantity demanded. If the demand curve is inelastic, what happens to the total revenue of the firm?
Question 11
A country's inflation rate is 5% per annum. If the country's central bank increases the money supply by 10% in a \single year, what will be the effect on the inflation rate?
Question 12
A country's GDP is 100 billion naira, and its GNP is 120 billion naira. What is the value of net factor income from abroad?
Question 13
A country's balance of payments account is given by Current Account = 100 billion naira, Capital Account = 50 billion naira, and Financial Account = -20 billion naira. What is the value of the country's net foreign exchange earnings?
Question 14
A country's money supply is given by M = 1000 + 0.5Y. If the country's GDP is ₦500 billion, what is the money supply?
Question 15
A consumer has a budget of ₦1000 to sp\end on two goods, X and Y. The price of good X is ₦200 and the price of good Y is ₦300. If the consumer sp\ends all the budget on the two goods, what is the opportunity \cost of buying one more unit of good X?
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