POST UTME OAU 2025 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm is a pure monopolist in a market with a demand curve given by P = 100 - 2Q. The firm's marginal \cost curve is given by MC = 10. What is the firm's optimal quantity and price?
Question 2
A monopolist is producing a good u\sing a production function of the form 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 combination of labor and capital that maximizes the monopolist's profit.
Question 3
A firm is producing a good with the following production function: q = 2L^0.5K^0.5. The firm is facing a labor market with a wage rate of $10 per hour and a capital market with a rental rate of $5 per hour. What is the firm's \cost-minimizing input combination?
Question 4
A firm's production function is given by Q = 2L^0.5K^0.5. What is the value of the returns to scale?
Question 5
A monopolist is producing a good u\sing a production function of the form 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 combination of labor and capital that maximizes the monopolist's profit.
Question 6
A country is experiencing a trade deficit due to a large imbalance in its trade with a neighboring country. The country's imports are valued at $100 billion, while its exports are valued at $80 billion. What is the trade deficit?
Question 7
A government is considering a policy to increase agricultural production. The policy involves providing subsidies to farmers to purchase fertilizers and pesticides. If the government expects to sp\end 10 billion naira on the policy, and the subsidy rate is 20%, what is the total value of fertilizers and pesticides purchased?
Question 8
Suppose a country has a trade deficit of $100 billion and a current account deficit of $50 billion. What is the likely effect on its exchange rate?
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 elasticity of demand is 0.5, find the percentage change in quantity demanded when the price increases by 10%.
Question 10
A firm's tax liability is given by the equation T = 0.2I, where T is the tax liability and I is the investment. If the firm's investment is ₦10 million, find the firm's tax liability.
Question 11
A firm is considering investing in a new project with a required rate of return of 15%. The project has a net present value (NPV) of 150,000. What is the present value of the expected future cash flows?
Question 12
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP is ₦10 trillion, consumption is ₦2 trillion, investment is ₦1 trillion, government sp\ending is ₦1.5 trillion, exports are ₦2.5 trillion, and imports are ₦1.5 trillion, find the country's trade balance.
Question 13
A government imposes a tax on a firm's output. The firm's supply curve shifts to the left, but the demand curve remains unchanged. What is the effect on the equilibrium price and quantity?
Question 14
A country's balance of payments is in equilibrium when its current account is equal to its capital account. What is the name of this equilibrium?
Question 15
A firm's \cost function is given by C = 2L + 3K, where L is labor and K is capital. If the firm's current labor and capital inputs are 16 and 9 respectively, what is the firm's total \cost?
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