POST UTME PAN-ATLANTIC UNIVERSITY 2024 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A consumer has a budget constraint of 100 units of currency and faces a price of 2 units of currency per unit of good X. If the consumer's indifference curve is given by U = 2X^0.5, what is the optimal quantity of good X to consume?
Question 2
The supply of a commodity is given by the equation Qs = 50 + 2P, where Qs is the quantity supplied and P is the price. If the price elasticity of supply is 1.5, find the price at which the quantity supplied is 80 units.
Question 3
A firm's demand for raw materials is elastic with respect to price. If the price of raw materials increases by 10%, what will be the percentage change in the quantity demanded?
Question 4
A country's inflation rate is given by π = \( M/P \) - 1, where π is the inflation rate, M is the money supply, and P is the price level. If the money supply increases by 10% and the price level increases by 5%, what is the new inflation rate?
Question 5
A firm's revenue function is given by R(q) = 100q - 2q^2. If the firm produces 10 units of output, what is the marginal revenue?
Question 6
A country's GDP is ₦10 trillion, and its GNP is ₦11 trillion. What is the net factor income from abroad?
Question 7
A firm's demand function is given by Q = 100 - 2P. If the firm's marginal revenue function is given by MR = 200 - 4Q, what is the optimal price to charge?
Question 8
The demand for a commodity 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 price at which the quantity demanded is 60 units.
Question 9
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 sp\ending, X is the exports, and M is the imports. If the consumption is ₦500, the investment is ₦200, the government sp\ending is ₦300, the exports are ₦400, and the imports are ₦200, what is the GDP?
Question 10
A country's government decides to implement a value-added tax (VAT) to increase revenue. If the VAT rate is 10% and the price of a product is ₦1000, what is the amount of VAT paid by the consumer?
Question 11
The production function for a firm is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor and K is the capital. If the firm increases labor from 100 to 121 units and capital from 100 to 121 units, what is the percentage change in output?
Question 12
A central bank increases the reserve requirement for commercial banks. What will be the effect on the money supply?
Question 13
A consumer has a utility function given by U = 2X + 3Y, where X and Y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦200 and ₦300 respectively, what is the optimal bundle?
Question 14
A farmer produces wheat and corn on a 100-hectare farm. The production functions for wheat and corn are given by W = 100x^0.5 and C = 50x^0.5, respectively. If the farmer's budget constraint is 10W + 5C = 1000, what is the optimal allocation of land to wheat and corn?
Question 15
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \), where X is the exports, M is the imports, F is the foreign investment and I is the domestic investment. If the country's exports increase by 10%, imports decrease by 5%, foreign investment increases by 15% and domestic investment decreases by 10%, what is the percentage change in the balance of payments?
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