POST UTME OAU 2019 Economics | Objective
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Question 1
A firm's production function is given by Q = 2L + 3K, where Q is the quantity produced, L is the number of labor units, and K is the number of capital units. If the firm wants to produce 10 units of output, how many labor units should it hire?
Question 2
The balance of payments (BOP) of a country is a statistical statement that summarizes all economic transactions between residents and non-residents over a specific period of time. What is the main purpose of the BOP?
Question 3
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 supply of the product is given by the equation Qs = 2P - 100, where Qs is the quantity supplied and P is the price, what is the equilibrium price and quantity?
Question 4
Consider a firm operating in a perfectly competitive market with a given production function Q = 2L^0.5H^0.5. If the firm's current input prices are w_L = 10 and w_H = 20, and the current output price is p = 50, calculate the firm's optimal input mix u\sing the method of Lagrange multipliers.
Question 5
A perfectly competitive market has a downward-sloping demand curve and a horizontal supply curve. If the market price is $10, and the firm's marginal revenue (MR) is $8, what is the firm's marginal \cost (MC)?
Question 6
A country's government is considering a tax on a particular good. The tax is expected to increase the price of the good by 20%. If the demand for the good is elastic, what will be the effect on government revenue?
Question 7
A consumer has the following utility function: U(x, y) = 2x^0.5y^0.5. If the consumer's budget is 100 and the prices of x and y are 10 and 20 respectively, find the consumer's optimal consumption bundle u\sing the method of comparative statics.
Question 8
A consumer has the following utility function: U(x, y) = 2x^0.5y^0.5. If the consumer's budget is 100 and the prices of x and y are 10 and 20 respectively, find the consumer's optimal consumption bundle u\sing the method of comparative statics.
Question 9
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 is $20, how many units of the product will be demanded?
Question 10
A monopolistically competitive firm faces a downward-sloping demand curve and a downward-sloping marginal revenue (MR) curve. If the firm's MR is $12, and the market price is $15, what is the firm's marginal \cost (MC)?
Question 11
A firm is considering a new investment project. The project has a net present value (NPV) of $100,000, and the firm's \cost of capital is 10%. What is the internal rate of return (IRR) of the project?
Question 12
A farmer in Nigeria has 100 hectares of land to cultivate crops. If the opportunity \cost of cultivating maize is ₦200,000 per hectare and the opportunity \cost of cultivating rice is ₦250,000 per hectare, what is the opportunity \cost of cultivating both maize and rice on the 100 hectares of land?
Question 13
A consumer has the following utility function: U(x, y) = 2x + 3y. The prices of x and y are $2 and $3, respectively. What is the consumer's budget constraint?
Question 14
A monopolist faces a demand curve with the following equation: \( Q = 100 - 2P \). If the monopolist's marginal revenue function is given by \( MR = 200 - 4P \), what is the price at which the monopolist will maximize profits?
Question 15
A firm is producing a good with the following production function: Q = 2L^0.5K^0.5. The firm's \cost function is given by C(L, K) = 10L + 20K. What is the firm's profit-maximizing input combination?
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