POST UTME WELLSPRING UNIVERSITY 2023 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm is considering investing in a new project with an initial \cost of ₦100,000 and expected annual profits of ₦20,000 for 5 years. What is the internal rate of return (IRR) of the project?
Question 2
A country's balance of payments is given by the equation \( BOP = X - M \), where ( BOP ) is the balance of payments, ( X ) is the exports and ( M ) is the imports. If the exports are ₦100 billion and the imports are ₦120 billion, what is the balance of payments?
Question 3
A firm's revenue function is given by R(q) = 20q^2 - 10q. If the firm produces 5 units, what is the marginal revenue?
Question 4
A country's balance of payments is in equilibrium when the current account is equal to the capital account. If the current account is $100 million and the capital account is $80 million, what is the net capital outflow?
Question 5
A firm produces a good with a production function Q = 2L + 3K, where L is labor and K is capital. If the firm hires 10 units of labor and 5 units of capital, what is the marginal product of labor?
Question 6
The government of Nigeria has introduced a new policy aimed at increa\sing industrial production. The policy includes a tax credit of ₦20,000 per unit of output for firms that produce goods that are in high demand. If a firm produces 100 units of output, how much tax credit will they receive?
Question 7
The government of Nigeria has introduced a new tax policy aimed at increa\sing revenue. The policy includes a 10% tax on all income above ₦500,000. If a person earns ₦750,000 per annum, how much tax will they pay?
Question 8
A firm produces a good with a production function Q = 2L + 3K, where L is labor and K is capital. If the firm hires 10 units of labor and 5 units of capital, how many units of the good will it produce?
Question 9
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm has 4 units of labor and 9 units of capital, how many units of output will it produce?
Question 10
A monopolist faces a market demand curve given by Q = 100 - 2P. The monopolist's marginal \cost curve is MC = 10 + 2Q. What is the monopolist's optimal price and quantity?
Question 11
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is given by Qd = 100 - 2P and the supply curve is given by Qs = 2P, find the equilibrium price and quantity.
Question 12
A country's inflation rate is given by the following equation: Inflation Rate = \( P - P0 \) / P0, where P is the current price level and P0 is the base price level. If the current price level is ₦100 and the base price level is ₦80, what is the inflation rate?
Question 13
A firm's \cost function is given by C(q) = 10q^2 + 20q. If the firm produces 10 units, what is the total \cost?
Question 14
The government of Nigeria has introduced a new policy aimed at increa\sing agricultural production. The policy includes a subsidy of ₦50,000 per hectare for farmers who produce crops that are in high demand. If a farmer produces 100 hectares of crops, what is the total subsidy they will receive?
Question 15
A country's inflation rate is given by the following equation: Inflation = \( P - P0 \) / P0, where P is the current price level and P0 is the base price level. If the current price level is ₦100 and the base price level is ₦80, what is the inflation rate?
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