POST UTME RHEMA UNIVERSITY 2020 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is currently 16 units, and it wants to increase output to 25 units, how many more units of labor (L) and capital (K) will it need to hire, assuming the same ratio of labor to capital?
Question 2
Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what is the likely outcome?
Question 3
The Marshall-Lerner condition states that a country's balance of payments will improve if the sum of the percentage changes in its export and import prices exceeds the percentage change in its exchange rate. Which of the following scenarios would lead to an improvement in the balance of payments?
Question 4
A firm's \cost function is given by C = 100 + 2Q + 3Q^2, where C is the \cost and Q is the quantity produced. If the quantity produced is 10 units, what is the \cost?
Question 5
A consumer's demand for a good is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the price of the good increases by 10%, what will be the new quantity demanded?
Question 6
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^\( 1/2 \)H^\( 1/2 \), where L and H are labor and capital inputs, respectively. If the firm's current input levels are L = 4 and H = 9, calculate the returns to scale.
Question 7
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are 16 and 9, respectively, what is its output?
Question 8
A country's trade balance is given by the equation TB = X - M, where TB is the trade balance, X is the export revenue, and M is the import exp\enditure. If the export revenue is ₦100 billion and the import exp\enditure is ₦120 billion, what is the value of the trade balance?
Question 9
A firm's revenue function is given by R = 100Q - 2Q^2, where R is the revenue and Q is the quantity sold. If the quantity sold is 10 units, what is the revenue?
Question 10
A monopolistically competitive firm faces a demand curve that is downward sloping but has a cons\tant elasticity of -2. If the firm's marginal revenue is 100, what is its marginal \cost?
Question 11
A firm's demand function is given by Qd = 100 - 2P + 3Y, where Qd is the quantity demanded, P is the price, and Y is the income. If the price is $10 and the income is $100, what is the quantity demanded?
Question 12
The government of Nigeria has set a budget of ₦10 billion for the agricultural sector. If the government allocates 20% of the budget to irrigation, then the amount allocated to irrigation is
Question 13
A consumer's demand function for a good is given by Q = 100 - 2P, where P is the price of the good. If the consumer's income is ₦100 and the price of the good is ₦10, calculate the consumer's elasticity of demand.
Question 14
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 16 units, and the number of workers (L) is 4, then the number of machines (K) required is
Question 15
A firm produces two goods, A and B. The production function for good A is given by Q_A = 2L + 3K, where L is the labor input and K is the capital input. The production function for good B is given by Q_B = 4L + 2K. If the firm has 10 units of labor and 5 units of capital, what is the opportunity \cost of producing one more unit of good A?
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