POST UTME SKYLINE UNIVERSITY 2020 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
U\sing the Cobb-Douglas production function, determine the marginal product of labor (MPL) and the marginal product of capital (MPK) for a firm with the following production function: Q = 10L^0.5K^0.5, where Q is output, L is labor, and K is capital.
Question 2
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where GDP is the gross domestic product, C is the consumption, I is the investment, G is the government sp\ending, X is the value of exports, and M is the value of imports. If the consumption is 500, the investment is 200, the government sp\ending is 300, the value of exports is 100, and the value of imports is 80, what is the GDP?
Question 3
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm's revenue function is R(q) = 20q, find the profit-maximizing quantity of output.
Question 4
Suppose the demand function for a commodity is given by Q = 100 - 2P and the supply function is given by Q = 2P + 10. Find the equilibrium price and quantity.
Question 5
A firm is considering investing in a new project with the following cash flows: Year 0: -₦100,000, Year 1: ₦50,000, Year 2: ₦70,000, Year 3: ₦90,000. U\sing the net present value (NPV) method, determine the minimum discount rate at which the project will be acceptable, assuming a discount rate of 10%.
Question 6
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the price is increased by 10%, what is the new quantity demanded?
Question 7
A firm produces two goods, A and B, u\sing two inputs, labor and capital. The production function for good A is given by Q_A = 2L^0.5 K^0.5, where Q_A is the quantity of good A produced, L is the amount of labor used, and K is the amount of capital used. If the firm uses 4 units of labor and 9 units of capital, what is the marginal product of labor?
Question 8
A country is experiencing a trade deficit of $100 million. If the country's GDP is $500 billion, what is the trade deficit as a percentage of GDP?
Question 9
A firm's production function is given by Q = 2L^0.5H^0.5. If the firm's current output is 16 units and the number of workers (L) is 4, find the number of machines (H) required.
Question 10
A central bank is u\sing the money supply multiplier to increase the money supply in an economy. If the reserve requirement is 20% and the money multiplier is 5, what is the increase in the money supply?
Question 11
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer has a budget of ₦100 and the prices of the two goods are ₦20 and ₦30 respectively, what is the consumer's optimal bundle?
Question 12
A consumer's utility function is given by U = 2x + 3y. If the consumer's income is ₦1200 and the prices of x and y are ₦4 and ₦6 respectively, find the optimal quantities of x and y.
Question 13
U\sing the Marshall-Lerner condition, determine the effect of a 10% devaluation of the naira on the balance of payments of Nigeria, assuming the price elasticity of demand for exports is 2 and the price elasticity of demand for imports is 1.5.
Question 14
A consumer's budget constraint is given by 2x + 3y = 100, where x and y are the quantities of two goods consumed. If the consumer's utility function is given by U = 2x + 3y, what is the consumer's optimal bundle?
Question 15
A consumer's indifference curve is given by U = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12, find the consumer's optimal bundle of x and y.
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