POST UTME VERITAS UNIVERSITY 2022 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A country's GDP is ₦1.5 trillion, and its GNP is ₦1.7 trillion. What is the net factor income from abroad?
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm increases labor from 4 units to 9 units, and capital from 9 units to 16 units, calculate the percentage change in output.
Question 3
The central bank of Nigeria uses a monetary policy instrument to control the money supply in the economy. The instrument is given by the equation M = 1000B, where M is the money supply and B is the bank reserves. If the bank reserves are ₦1000, find the money supply.
Question 4
A farmer in Nigeria produces wheat u\sing a production function given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the price of wheat is ₦100 per unit, and the price of labor is ₦50 per unit, and the price of capital is ₦200 per unit, find the optimal level of labor and capital to produce.
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are 100 and 200 units respectively, what is the firm's output?
Question 6
A firm is considering investing in a new project that has a net present value (NPV) of ₦500 million. The \cost of capital is 10%. What is the expected rate of return on the project?
Question 7
A firm's demand curve is given by the equation Qd = 100 - 2P, where P is the price. If the firm's supply curve is given by Qs = 2P - 10, what is the equilibrium price?
Question 8
The Marshall-Lerner condition states that a country's balance of payments will improve if the sum of the percentage changes in its export and import prices exceeds a certain threshold. What is the name of this threshold?
Question 9
A firm's revenue function is given by R(x) = 2x^2 + 5x + 10, where x is the number of units produced. If the firm's marginal revenue function is MR(x) = 4x + 5, find the value of x that maximizes revenue.
Question 10
The central bank of a country has implemented a monetary policy to reduce inflation. Which of the following tools is most likely to be used?
Question 11
A country's balance of payments is given by the following table:\n| Item | Value |\n| --- | --- |\n| Exports | ₦1.2 trillion |\n| Imports | ₦1.5 trillion |\n| Net Factor Income | ₦200 billion |\n| Net Transfer | ₦100 billion |\nWhat is the country's balance of payments deficit?
Question 12
A firm's \cost function is given by C(x) = 2x^2 + 5x + 10, where x is the number of units produced. If the firm's revenue function is R(x) = 4x^2 + 5x + 10, find the value of x that minimizes the firm's average \cost.
Question 13
A government imposes a tax on a firm's output. If the firm's supply curve is given by Q = 100 + 2P and the tax rate is ₦5 per unit, what is the firm's new supply curve?
Question 14
The concept of scarcity in economics implies that the production of one good is limited by the availability of resources that could be used to produce another good. This is an example of a trade-off between two goods. Which of the following is a correct statement about the opportunity \cost of producing one good?
Question 15
A firm's \cost function is given by C = 2L + 3K. If the firm's labor and capital inputs are 100 and 200 units respectively, what is the firm's total \cost?
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