POST UTME REDEEMERS UNIVERSITY 2021 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
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 0.5, find the price at which the quantity demanded is 60.
Question 2
A country's balance of payments is given by the equation \( BOP = X - M \), where (BOP) is the balance of payments, (X) is the export, and (M) is the import. If the export is ₦100 billion and the import is ₦80 billion, find the balance of payments.
Question 3
A firm's profit function is given by the equation \( P = R - C \), where (P) is the profit, (R) is the revenue, and (C) is the \cost. If the revenue is ₦2500 and the \cost is ₦2000, find the profit.
Question 4
A firm is facing a demand curve given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal \cost is ₦50 per unit, what is the profit-maximizing price?
Question 5
A firm is facing a supply curve given by Q = 2P + 10, where Q is the quantity supplied and P is the price. If the firm's marginal revenue is ₦20 per unit, what is the profit-maximizing quantity?
Question 6
A monopolist faces a demand curve given by Q = 100 - 2P, where Q is quantity and P is price. If the firm's marginal revenue is given by MR = 200 - 4Q, what is the firm's optimal price?
Question 7
The concept of returns to scale in production theory implies that as the level of output increases, the marginal product of labor also increases, but at a decrea\sing rate. Which of the following statements best describes the relationship between the marginal product of labor and the level of output?
Question 8
A firm produces a \single good u\sing two inputs, labor and capital. The production function for the good is given by Q = 2L^0.5K^0.5, where Q is the quantity of the good produced, L is the amount of labor used, and K is the amount of capital used. U\sing the concept of \cost minimization, determine the optimal combination of labor and capital that the firm should use to produce 16 units of the good.
Question 9
The government of Nigeria has introduced a new tax policy aimed at increa\sing revenue from the agricultural sector. The policy involves a 10% tax on all agricultural products sold in the market. U\sing the concept of elasticity of demand, determine the likely effect of this policy on the price of yam, a staple crop in Nigeria.
Question 10
A firm has a production function Q = 3L^0.5K^0.5. If the price of the good is $15 and the wage rate is $6 per unit of labor, what is the optimal level of labor (L) that the firm should hire?
Question 11
The government of a country imposes a tax on imports to raise revenue. The tax is levied at a rate of 10% on all imports. If the value of imports is ₦100 million, what is the amount of tax paid by the importer?
Question 12
A firm's production function is given by Q = 2L + 3K, where Q is the quantity produced, L is the number of labor units, and K is the number of capital units. If the firm uses 10 labor units and 5 capital units, what is the quantity produced?
Question 13
The demand curve for a commodity is given by the equation \( p = 100 - 2q \), where (p) is the price and (q) is the quantity demanded. If the price elasticity of demand is 0.5, find the price at which the quantity demanded is 20 units.
Question 14
A country's GDP is given by the equation \( GDP = C + I + G + \( X - M \ \)), where (GDP) is the GDP, (C) is the consumption, (I) is the investment, (G) is the government sp\ending, (X) is the export, and (M) is the import. If the consumption is ₦100 billion, the investment is ₦50 billion, the government sp\ending is ₦20 billion, the export is ₦100 billion, and the import is ₦80 billion, find the GDP.
Question 15
A government in Nigeria wants to increase tax revenue by 10%. If the current tax rate is 20%, what is the new tax rate?
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