POST UTME VERITAS UNIVERSITY 2018 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A monopolist faces a market demand curve given by Qd = 100 - 2P and a \cost function C(Q) = 10Q + 100. If the firm produces 20 units, what is the profit-maximizing price?
Question 2
A consumer's utility function is given by U = 2x + 3y. The budget constraint is given by 2x + 3y = 30. Find the optimal values of x and y.
Question 3
A firm's \cost function is given by C = 100 + 2Q + 0.5Q^2. If the firm produces 50 units, what is the total \cost?
Question 4
A firm's production function is given by Q = 2L + 3K, where Q is the output, L is the labor and K is the capital. If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, find the optimal combination of labor and capital that maximizes the profit, given that the output is 100 units and the price of the product is ₦200 per unit.
Question 5
The demand for a product 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 0.5, what is the percentage change in quantity demanded when the price increases by 10%?
Question 6
The government of Nigeria has introduced a new policy to increase agricultural production. The policy involves providing subsidies to farmers who use modern farming techniques. However, the policy has been criticized for being too expensive. Calculate the opportunity \cost of the policy in terms of the foregone revenue from taxation.
Question 7
A consumer has a utility function U(x, y) = 2x + 3y, where x is the quantity of good x consumed and y is the quantity of good y consumed. The prices of good x and good y are ₦10 and ₦20 respectively. Find the consumer's budget constraint and the optimal quantities of good x and good y to consume.
Question 8
A firm's production function is given by Q = 2L^0.5K^0.5. If the wage rate is ₦50 per hour and the rental rate is ₦20 per hour, find the optimal values of L and K.
Question 9
The demand for a product 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 0.5, find the price at which the quantity demanded is 60 units.
Question 10
A firm's production function is given by Q = 10K^\( 1/2 \) L^\( 1/2 \). If the firm's capital is 100 units and labor is 50 units, what is the marginal product of labor?
Question 11
A firm's total revenue (TR) is given by TR = 100Q - 2Q^2, where Q is the quantity sold. If the firm sells 20 units, what is the total revenue?
Question 12
A country's balance of payments account is given by the following equation: BOP = \( X - M \) + \( F - I \). If the country's exports are $100 billion, imports are $80 billion, foreign investment is $20 billion, and domestic investment is $30 billion, what is the balance of payments?
Question 13
The government of a country imposes a tax of ₦10 per unit on a product. If the demand for the product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price, find the new equilibrium price and quantity after the tax is imposed.
Question 14
In a perfectly competitive market, the supply curve is upward-sloping and the demand curve is downward-sloping. What is the equilibrium price and quantity of a product in this market?
Question 15
A country's money supply is given by the equation: M = \( r + i \) + \( k + b \). If the interest rate is 5%, the inflation rate is 3%, the money multiplier is 2, and the reserve requirement is 10%, what is the money supply?
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