POST UTME NILE UNIVERSITY 2024 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A country with a fixed exchange rate has a trade deficit of ₦1000. The country's import demand function is given by \( MD = 100 - 2P \), where ( P ) is the price of imports in domestic currency. The country's export supply function is given by \( ES = 50 + 3P \). Assuming the initial price of imports is 50, calculate the change in trade deficit if the price of imports increases by 10.
Question 2
A government is considering a tax on a particular good. The demand curve for the good is given by Qd = 100 - 2P and the supply curve is given by Qs = 20 + 3P. If the government imposes a tax of ₦10 per unit, what will be the new equilibrium price and quantity?
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, find the optimal input combination.
Question 4
A firm's total revenue is given by R(q) = 20q. If the firm's total \cost is C(q) = 2q^2 + 5q + 10, find the firm's profit-maximizing quantity of output.
Question 5
A firm is operating in a perfectly competitive market with a supply curve given by Q = 50 + 2P. If the market price is ₦20, what is the firm's revenue?
Question 6
A monopolist faces a demand curve given by P = 100 - 2q. The firm's marginal \cost is MC(q) = 10 + 2q. Find the monopolist's profit-maximizing quantity of output.
Question 7
A central bank uses monetary policy to control inflation. Explain how an increase in the money supply affects the price level.
Question 8
Consider a country with a fixed exchange rate and a trade deficit. The country's import demand function is given by \( MD = 100 - 2P \), where ( P ) is the price of imports in domestic currency. The country's export supply function is given by \( ES = 50 + 3P \). Assuming the initial price of imports is 50, calculate the initial trade deficit and the change in trade deficit if the price of imports increases by 10.
Question 9
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing price and quantity.
Question 10
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm has 100 units of labor and 400 units of capital, what is the output?
Question 11
A firm's \cost function is given by C = 2L + 3K, where L is labor and K is capital. If the firm's revenue function is given by R = 4L + 2K, what is the firm's profit function?
Question 12
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 ₦10 respectively, what is the consumer's optimal bundle?
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 A = 2L + 3K and B = 4L + 2K. If the firm's objective is to maximize profit, subject to the constraint that the total output of good A is 10 units, what is the optimal level of labor?
Question 14
A firm is considering two investment projects. Project A has a net present value (NPV) of ₦1,000,000 and a payback period of 5 years. Project B has an NPV of ₦800,000 and a payback period of 4 years. Which project should the firm choose?
Question 15
A firm's total revenue is given by R(q) = 20q. If the firm's total \cost is C(q) = 2q^2 + 5q + 10, find the firm's profit.
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