POST UTME SUMMIT UNIVERSITY 2024 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm's current labor and capital inputs are L = 4 and H = 9, respectively, what is the marginal product of labor (MPL) when the firm is producing at the given input levels?
Question 2
A country is experiencing a recession, and the government decides to implement a fiscal policy to stimulate the economy. If the government increases its sp\ending by ₦500 billion, what is the multiplier effect on the GDP?
Question 3
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is given by Qd = 100 - P and the inverse supply curve is given by Qs = 20 + 2P, find the equilibrium price and quantity.
Question 4
A consumer's indifference curve is given by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦100 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
Question 5
A firm is producing a good with a production function \( Q = 2L^{0.5}K^{0.5} \). If the firm's \cost of production is given by \( C = 10L + 20K \), find the firm's optimal input bundle of L and K.
Question 6
A consumer has a utility function U(x,y) = 2x + 3y, where x is the quantity of good X and y is the quantity of good Y. If the consumer has a budget of ₦100 and the prices of good X and good Y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle?
Question 7
A firm has a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 10Q + 100. If the firm produces 20 units, what is the profit-maximizing price?
Question 8
A country's balance of payments is given by the equation \( BOP = X - M \), where X is the value of exports and M is the value of imports. If the value of exports is ₦100 billion and the value of imports is ₦120 billion, what is the balance of payments?
Question 9
A firm's demand function for a product is 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, find the optimal price and quantity that maximize the firm's profit.
Question 10
A firm is producing a good with a total revenue of ₦1,500 and a total \cost of ₦1,200. If the price elasticity of demand is 1.5, what is the price elasticity of supply?
Question 11
Suppose a firm is producing a good u\sing a production function given by Q = 2L^0.5K^0.5. If the firm's \cost function is given by C = 100 + 10L + 20K, find the level of output that minimizes the firm's \cost.
Question 12
A firm's supply function is given by the equation \( Q = 2P + 10 \). If the price of the good is ₦20, what is the quantity supplied?
Question 13
A consumer's utility function is given by U = 2x^0.5y^0.5, where x and y are the quantities of two goods consumed. If the consumer's income is ₦1000 and the prices of the two goods are ₦2 and ₦3, respectively, what is the consumer's optimal bundle of goods?
Question 14
A firm is producing a good u\sing a production function given by Q = 2L^0.5K^0.5. If the firm's revenue function is given by R = 100Q, find the level of output that maximizes the firm's revenue.
Question 15
A consumer's budget constraint is given by B = P1x + P2y, where B is the budget, P1 and P2 are the prices of two goods, and x and y are the quantities of the two goods consumed. If the consumer's budget is ₦1000, the prices of the two goods are ₦2 and ₦3, respectively, and the consumer's income is ₦1200, what is the consumer's optimal bundle of goods?
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