POST UTME RHEMA UNIVERSITY 2023 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm's production function is given by Q = 3L^0.5K^0.5. If the firm's current input prices are w = ₦150 and r = ₦300, and the current output price is p = ₦600, calculate the firm's optimal input mix (L, K) u\sing the Hotelling's Lemma. Assume that the firm's objective is to maximize profits.
Question 2
A firm's production function is given by Q = 3L^0.5K^0.5. If the firm's current input prices are w = ₦250 and r = ₦500, and the current output price is p = ₦1000, calculate the firm's optimal input mix (L, K) u\sing the Hotelling's Lemma. Assume that the firm's objective is to maximize profits.
Question 3
A country's GDP is given by the equation GDP = C + I + G + \( X - M \). If the country's current GDP is 100 billion, and the values of C, I, and G are 20, 30, and 10 billion respectively, what is the value of net exports \( X - M \)?
Question 4
A firm's production function is given by Q = 2L^2 + 5K, where Q is output, L is labor, and K is capital. Determine the returns to scale.
Question 5
A consumer's utility function is given by U = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12, and the price of good x is 2, what is the consumer's optimal consumption bundle?
Question 6
A country's GDP grows at a rate of 5% per annum. If the population of the country grows at a rate of 2% per annum, what is the rate of growth of per capita income?
Question 7
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is 20, what is the firm's current quantity demanded?
Question 8
A country's GDP at market price is ₦10 trillion. The government imposes a 10% Value Added Tax (VAT) on all goods and services. Calculate the country's GDP at factor \cost.
Question 9
A monopolistically competitive firm faces a downward-sloping demand curve. U\sing the concept of marginal revenue, explain why the firm will produce at the level where MR = MC.
Question 10
A monopolist faces a demand curve given by Q = 100 - 2P and a marginal revenue function MR = 20 - 2Q. Determine the profit-maximizing price and quantity.
Question 11
A firm operating in a perfectly competitive market produces two goods, A and B. The production of good A generates a positive externality for the production of good B. U\sing the concept of opportunity \cost, explain why the firm's production of good A will increase if the government imposes a tax on the production of good B.
Question 12
A country's balance of payments is given by the following accounts: Current account: -₦100, Capital account: +₦200, Financial account: +₦300. Determine the overall balance.
Question 13
Consider a firm operating in a perfectly competitive market with a given production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦200, and the current output price is p = ₦500, calculate the firm's optimal input mix (L, K) u\sing the Hotelling's Lemma. Assume that the firm's objective is to maximize profits.
Question 14
A country's GNP at market price is ₦12 trillion. The government imposes a 15% Value Added Tax (VAT) on all goods and services. Calculate the country's GNP at factor \cost.
Question 15
The government of Nigeria has introduced a new tax policy aimed at increa\sing revenue from the agricultural sector. The policy includes a 10% tax on all agricultural produce sold in the market. If the total revenue from the sale of agricultural produce is ₦1,500,000, what is the amount of tax paid by the farmers?
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