POST UTME OAU 2018 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A country's GDP at market price is ₦1,500,000,000. If the net indirect tax is ₦200,000,000, calculate the GDP at factor \cost.
Question 2
The Nigerian government has implemented a policy aimed at reducing poverty. The policy involves increa\sing the minimum wage. What is the likely effect of this policy on the poverty rate?
Question 3
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is downward-sloping and the firms are price-takers, what is the relationship between the marginal revenue (MR) and the price (P) of the product?
Question 4
A government imposes a tax on a good, cau\sing the supply curve to shift to the left. If the demand curve is inelastic, the tax will result in a
Question 5
The concept of elasticity of demand is most relevant in the context of
Question 6
Consider a small open economy with a production function given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the economy is initially at full employment, and the wage rate is ₦100 per unit of labor, and the rental rate is ₦200 per unit of capital, calculate the change in the value of the marginal product of labor \( VMP_L \) if the wage rate increases by 10%.
Question 7
A firm is producing two goods, X and Y. The production function for good X is given by QX = 2L + 3K, where L is labor and K is capital. The production function for good Y is given by QY = 4L + 2K. If the firm wants to produce 10 units of good X and 8 units of good Y, what is the opportunity \cost of producing one more unit of good X?
Question 8
Consider a firm that produces a homogeneous good u\sing two inputs, labor (L) and capital (K). The production function is given by Q = 2L^0.5K^0.5. If the firm's \cost function is given by C(L,K) = 10L + 20K, and the firm's revenue function is given by R(Q) = 100Q, calculate the firm's profit-maximizing input combination.
Question 9
A country's GNP at market price is ₦1,800,000,000. If the net indirect tax is ₦300,000,000, calculate the GNP at factor \cost.
Question 10
Agricultural development in Nigeria has been hindered by
Question 11
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 percentage change in quantity demanded when the price increases by 10%?
Question 12
A consumer has a budget of ₦1000 and faces the following indifference curves: IC1 and IC2. If the price of good X is ₦200 and the price of good Y is ₦300, what is the consumer's optimal bundle?
Question 13
The Nigerian government has implemented a policy aimed at promoting industrialization. The policy involves providing subsidies to firms in the manufacturing sector. What is the likely effect of this policy on the firms' production \costs?
Question 14
A firm's production function is Q = 2L^0.5K^0.5. If the firm's current output is 16 units and the price per unit is ₦20, calculate the total \cost.
Question 15
A firm faces a demand curve given by P = 100 - 2Q. If the firm's marginal \cost is MC = 20 + 2Q, what is the firm's optimal quantity of output?
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