POST UTME OSUSTECH 2024 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
Consider a production function \( Q = f\( L, K \ \) ) where ( Q ) is the quantity of output, ( L ) is labor, and ( K ) is capital. If the marginal product of labor is \( MPL = \frac{partial Q}{partial L} = 10L \) and the marginal product of capital is \( MPK = \frac{partial Q}{partial K} = 5K \), what is the value of \( \frac{MPL}{MPK} \) when \( L = 2 \) and \( K = 3 \)?
Question 2
A consumer has a budget constraint of ₦100 and a utility function U(x,y) = 2x + 3y. If the prices of x and y are ₦5 and ₦10 respectively, what is the optimal bundle of x and y that the consumer will choose?
Question 3
A firm's \cost function is given by ( C(x) = 2x^2 + 3x + 10 ). If the firm produces 10 units of output, find the total \cost of production.
Question 4
Consider a firm that produces two goods, A and B. The production function for good A is \( Q_A = 2L_A + 3K_A \) and the production function for good B is \( Q_B = 3L_B + 2K_B \). If the firm has 10 units of labor and 8 units of capital, how many units of good A and good B should the firm produce to maximize profits?
Question 5
A consumer's indifference curve is given by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, find the consumer's optimal bundle of x and y.
Question 6
Consider a market with a demand function Qd = 100 - 2P and a supply function Qs = 2P - 10. If the market is in equilibrium, what is the price and quantity of the good?
Question 7
A firm is considering investing in a new project that has the following cash flows: Year 1: -100, Year 2: 150, Year 3: 200. What is the net present value of the project if the discount rate is 10%?
Question 8
Consider a closed economy with a GDP of ₦10 trillion and a GNP of ₦12 trillion. If the net factor income from abroad is ₦1.5 trillion, what is the value of the net factor income from abroad as a percentage of the GNP?
Question 9
A government has a budget constraint of ₦1000 and a tax rate of 20%. If the government wants to maximize its revenue, what is the optimal level of taxation?
Question 10
A firm's demand function is given by \( Q = 100 - 2P \), where ( Q ) is the quantity demanded and ( P ) is the price. If the firm's supply function is \( Q = 2P - 50 \), what is the equilibrium price and quantity?
Question 11
A monopolist faces a demand curve given by P = 100 - 2Q, where P is price and Q is quantity. If the firm's marginal \cost (MC) is 20, what is the profit-maximizing quantity?
Question 12
A country's GNP is calculated as the sum of all final goods and services produced within its borders, plus the income earned by its citizens from abroad. If a country's GDP is 100, and its citizens earn 20 from abroad, what is the country's GNP?
Question 13
A monopolist faces a demand curve D(p) = 100 - 2p and a \cost function C(q) = 10q + 100. Find the profit-maximizing price and quantity.
Question 14
A country's production function is given by the equation Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the country has 100 units of labor and 200 units of capital, what is the output?
Question 15
A country's elasticity of demand for a particular good is given by the equation \( E_d = \frac{P}{Q} \), where P is the price of the good and Q is the quantity demanded. If the price of the good is ₦10 and the quantity demanded is 20 units, find the elasticity of demand.
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