POST UTME OSUSTECH 2018 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm is considering increa\sing its production of a good, but it is concerned about the potential increase in its \costs. U\sing the concept of returns to scale, explain why the firm might choose to increase production, even if it means increa\sing its \costs.
Question 2
A monopolist faces a demand curve given by P = 100 - 2Q, where P is price and Q is quantity. If the marginal \cost is ₦50, what is the optimal quantity produced?
Question 3
A consumer's indifference curve is steeper than another consumer's indifference curve. This implies that the first consumer
Question 4
A firm has a production function Q = 2L^0.5K^0.5, where L and K are labor and capital respectively. If the firm's \cost function is given by C(L, K) = 2L + 3K, find the optimal values of L and K u\sing the method of Lagrange multipliers.
Question 5
A monopolistically competitive firm faces a demand curve with the equation \( p = 100 - 2q \). If the firm's marginal \cost is \( MC = 20 \), and the firm is currently producing \( q = 20 \) units, what is the firm's profit-maximizing price?
Question 6
Consider a consumer with a utility function U(x, y) = 2x^0.5y^0.5. If the consumer's budget constraint is given by 2x + 3y = 12, find the optimal values of x and y u\sing the method of Lagrange multipliers.
Question 7
A country's balance of payments accounts are in equilibrium when the current account and capital account are equal. This implies that the country's
Question 8
Consider a country with a trade balance of $100 million and a current account surplus of $50 million. If the country's exchange rate is currently 1 USD = 100 Naira, find the value of the Naira in terms of the USD.
Question 9
A firm's production function is given by Q = 2L^2 + 3K^2, where Q is the output, L is the labor, and K is the capital. If the firm's output is 100 units, find the labor and capital required.
Question 10
At the point of equilibrium, the law of supply and demand dictates that the quantity supplied equals the quantity demanded. However, if the demand for a product increases, and the supply remains cons\tant, what will be the effect on the equilibrium price?
Question 11
A monopolist faces a demand curve given by P = 100 - 2Q, where P is price and Q is quantity. If the marginal \cost is ₦50, what is the optimal quantity produced?
Question 12
A country's balance of payments is in equilibrium when its current account is equal to its capital account. If the country's current account surplus is $100 million and its capital account deficit is $50 million, what is the net effect on the country's balance of payments?
Question 13
Consider a production function given by Q = 100K^\( 1/2 \)L^\( 1/2 \), where Q is output, K is capital, and L is labor. If the marginal product of labor is 20, and the wage rate is ₦200 per unit of labor, what is the optimal level of labor?
Question 14
A firm has a production function Q = 2L^0.5K^0.5, where L and K are labor and capital respectively. If the firm's \cost function is given by C(L, K) = 2L + 3K, find the optimal values of L and K u\sing the method of Lagrange multipliers.
Question 15
A firm's production function is given by \( Q = 100K^{\frac{1}{2}}L^{\frac{1}{2}} \). If the firm's output is 100 units, and the firm's labor input is 4 units, what is the firm's capital input?
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