POST UTME PAN-ATLANTIC UNIVERSITY 2021 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A central bank increases the money supply by 10%. If the velocity of money is 2, what is the percentage change in the price level?
Question 2
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. What is the profit-maximizing quantity of output?
Question 3
A firm has a production function F(L, K) = L^0.4 K^0.6. If the wage rate is ₦100 per hour and the rental rate of capital is ₦200 per hour, what is the value of the marginal product of labor?
Question 4
Consider a firm that produces a \single good u\sing two inputs, labor (L) and capital (K). The production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and if the firm's budget constraint is given by 100L + 200K = ₦10,000, determine the optimal values of L and K that maximize profits.
Question 5
A country's GNP is ₦12 trillion, its GDP is ₦11 trillion, and its net factor income from abroad is ₦0.5 trillion. What is its national income?
Question 6
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, what is the \cost-minimizing combination of labor and capital?
Question 7
The GDP of a country is given by the equation \( GDP = C + I + G + \( X - M \ \) ), where ( C ) is the consumption, ( I ) is the investment, ( G ) is the government exp\enditure, ( X ) is the export, and ( M ) is the import. If the consumption is ₦500 billion, the investment is ₦200 billion, the government exp\enditure is ₦300 billion, the export is ₦400 billion, and the import is ₦200 billion, find the GDP.
Question 8
A country has a money supply of ₦100 billion and a velocity of circulation of 5. If the central bank wants to increase the money supply by 10%, what is the new money supply?
Question 9
A government imposes a tax on a good. What is the likely effect on the supply curve?
Question 10
A country's national income is given by the equation \( Y = C + I + G \), where ( Y ) is the national income, ( C ) is the consumption, ( I ) is the investment, and ( G ) is the government exp\enditure. If the consumption is ₦500 billion, the investment is ₦200 billion, and the government exp\enditure is ₦300 billion, find the national income.
Question 11
A firm's production function is given by the equation \( Q = 100 - 2L \), where ( Q ) is the quantity produced and ( L ) is the labor. If the firm's fixed \cost is ₦50,000, and the wage rate is ₦10,000 per hour, find the firm's total revenue and total \cost.
Question 12
The demand for a product is given by the equation \( Q_d = 100 - 2P \), where \( Q_d \) is the quantity demanded and ( P ) is the price. If the supply function is \( Q_s = 50 + 3P \), find the equilibrium price and quantity.
Question 13
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 -2, what is the percentage change in quantity demanded when the price increases by 10%?
Question 14
A firm is producing two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production function for good X is given by QX = 10L^0.5K^0.5, and the production function for good Y is given by QY = 5L^0.2K^0.8. If the firm has 100 units of labor and 50 units of capital, what is the total output of the firm?
Question 15
A firm is considering two different production processes. Process A \costs ₦100 per unit and Process B \costs ₦120 per unit. If the firm produces 100 units, what is the total \cost of production?
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