POST UTME UNIOSUN 2020 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm faces a demand curve given by P = 100 - 2Q. The marginal revenue function is given by MR = 100 - 4Q. If the firm's marginal \cost is MC = 20, what is the optimal price to charge?
Question 2
A firm's demand curve is given by the equation Qd = 100 - 2P. The firm's supply curve is given by the equation Qs = 2P. What is the firm's equilibrium price and quantity?
Question 3
A firm is producing a good with the following \cost function: C = 100 + 2L + 3K. If the price of labor is $10 per unit and the price of capital is $20 per unit, and the firm is currently producing 100 units of output, what is the total \cost of production?
Question 4
A firm is producing a commodity with a total revenue of ₦100,000 and a total \cost of ₦80,000. If the price elasticity of demand is 2, and the firm wants to maximize its profit, what should be the optimal price?
Question 5
Consider a production function of the form Q = f(K,L) = K^0.4L^0.6. If the marginal product of capital (MPK) is 0.16, and the marginal product of labor (MPL) is 0.24, what is the ratio of the marginal products?
Question 6
The government of Nigeria has implemented a policy to increase the production of rice. Which of the following is a likely effect of this policy?
Question 7
A firm's production function is given by the equation Q = 2L^2 + 3K, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm wants to produce 20 units of output, how many units of capital are required?
Question 8
The government of Nigeria has introduced a new tax policy to increase revenue. The policy includes a 10% increase in the value-added tax (VAT) and a 5% increase in the income tax rate. What is the likely effect of this policy on the aggregate demand curve?
Question 9
The demand for a commodity 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 defined as the percentage change in quantity demanded in response to a 1% change in price, calculate the price elasticity of demand.
Question 10
A firm operating in a perfectly competitive market produces two goods, A and B. The production function for good A is given by Q_A = 10L^0.5H^0.5, where L and H are the inputs of labor and capital, respectively. The production function for good B is given by Q_B = 5L^0.2H^0.8. If the firm's objective is to maximize profits, which of the following statements is true?
Question 11
A firm faces a demand curve given by P = 50 + 2Q. The marginal revenue function is given by MR = 50 + 4Q. If the firm's marginal \cost is MC = 30, what is the optimal quantity to produce?
Question 12
A consumer's budget constraint is given by the equation 2x + 3y = 12, where x and y are the quantities of two goods. If the consumer's income is ₦24, what is the maximum amount that can be spent on good y?
Question 13
A consumer's indifference curve is given by the equation u(x, y) = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦24, what is the maximum amount that can be spent on good y?
Question 14
Agricultural development in Nigeria has been hindered by several factors. Which of the following is NOT a major constraint to agricultural development in Nigeria?
Question 15
A country's balance of payments (BOP) is in equilibrium when the current account (CA) is equal to the capital account (KA). If the CA is ₦500 billion and the KA is ₦300 billion, what is the net capital outflow?
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