POST UTME OSUSTECH 2023 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
The government of Nigeria is considering a tax on sugar to reduce consumption. If the demand for sugar is given by the equation \( Q = 100 - 2P \) and the supply of sugar is given by the equation \( Q = 2P - 20 \), what is the optimal tax rate to impose on sugar?
Question 2
A country's inflation rate is given by π = \( MV/P \) - 1. The country's money supply is given by M = 100 + 2Y. The country's price level is given by P = 10 + 0.5Y. What is the country's inflation rate?
Question 3
A firm operating in a perfectly competitive market is faced with a downward-sloping demand curve. If the firm increases its output from 100 units to 120 units, and the price falls from ₦100 to ₦90, what is the opportunity \cost of producing the additional 20 units?
Question 4
A consumer is faced with the following utility function: U(x, y) = 2x + 3y. The consumer's income is ₦1000, and the prices of x and y are ₦2 and ₦3, respectively. What is the consumer's optimal bundle of x and y?
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5. The firm's current inputs are L = 16 and K = 9. What is the firm's total product (TP) and total \cost (TC)?
Question 6
A firm is a pure monopolist in a market where the demand curve is given by Qd = 100 - 2P. The firm's marginal \cost (MC) is cons\tant at ₦10. What is the firm's optimal price and quantity?
Question 7
A firm's demand curve is given by the equation \( Q = 100 - 2P \). If the firm's current price is ₦50, what is the quantity demanded?
Question 8
A firm is producing at a point on its production function where the marginal product of labor (MPL) is equal to the wage rate. However, the firm is not maximizing its profits. What is the main reason for this?
Question 9
A country's money supply is given by M = 100 + 2Y. The country's velocity of money is given by V = 5. What is the country's nominal GDP?
Question 10
A firm is producing a good with a production function \( Q = 2L^2 + 3K^2 \), where ( L ) is labor and ( K ) is capital. If the price of labor is ( ₦100 ) per unit and the price of capital is ( ₦200 ) per unit, what is the optimal level of labor and capital to produce 100 units of the good?
Question 11
A consumer's utility function is given by ( U(x,y) = \sqrt{x^2 + y^2} ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, find the optimal bundle of x and y u\sing the budget constraint.
Question 12
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current inputs are L = 16 and K = 9, what is the marginal product of labor (MPL) and the marginal product of capital (MPK)?
Question 13
A country's balance of payments is given by the following equation: BOP = X - M. If the country's exports (X) are ₦100 billion and imports (M) are ₦80 billion, what is the country's balance of payments?
Question 14
A firm is operating in a monopoly market. The demand curve is given by the equation Qd = 100 - 2P, and the marginal revenue curve is given by the equation MR = 50 - 2Q. What is the profit-maximizing price?
Question 15
The elasticity of demand for a commodity is given by the formula \( eta = \frac{p}{x} \frac{dx}{dp} \). If the demand for a commodity is inelastic, which of the following statements is true?
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.
Unlock Full Access
Available for Android & Windows