POST UTME WELLSPRING UNIVERSITY 2025 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A consumer's indifference curve is given by the equation \( U = 2x + 3y \), where ( U ) is the utility level, ( x ) is the quantity of good X consumed, and ( y ) is the quantity of good Y consumed. If the consumer is indifferent between consuming 4 units of good X and 2 units of good Y, what is the utility level?
Question 2
Determine the value of elasticity of demand for a firm that experiences a 10% increase in price, resulting in a 5% decrease in quantity demanded, given that the initial price is ₦100 and the initial quantity demanded is 100 units.
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. What is the value of the marginal product of capital (MPC) when L = 4 and K = 9?
Question 4
A firm is producing a good with a cons\tant elasticity of substitution (CES) production function given by \( Q = \( K^{-\rho} + L^{-\rho} \ \)^{-\frac{1}{\rho}} ). If the elasticity of substitution is 1.5, and the marginal product of labor is 20, what is the value of the output when K = 27 and L = 8?
Question 5
A firm produces a good u\sing two inputs, labor (L) and capital (K). The production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, what is the \cost-minimizing input combination?
Question 6
A firm's demand function is given by Q = 100 - 2P + 3Y. 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 7
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. What is the marginal product of labor (MPL) when L = 4 and K = 9?
Question 8
A country's GDP is given by \( GDP = C + I + G + \( X - M \ \) ), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP is $100 billion, and the consumption is $50 billion, what is the value of the investment when the government sp\ending is $20 billion, the exports are $30 billion, and the imports are $10 billion?
Question 9
A government imposes a tax on a firm's output, cau\sing the firm's supply curve to shift to the left. Which of the following diagrams represents the correct shift in the supply curve?
Question 10
A country's balance of payments (BOP) is given by the following equation: BOP = X - M, where X is the value of exports and M is the value of imports. If the country's exports are valued at ₦100 billion and imports are valued at ₦120 billion, what is the balance of payments?
Question 11
A country's balance of payments (BOP) is in equilibrium when the current account and capital account are equal. Which of the following is a characteristic of a country with a BOP surplus?
Question 12
Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) curve intersects its average variable \cost (AVC) curve at a point where MR = AVC, what is the likely outcome for the firm's profit-maximizing output level?
Question 13
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 increases labor input from 4 units to 6 units and capital input from 9 units to 12 units, what is the percentage change in output?
Question 14
A consumer's utility function is given by U = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, calculate the consumer's optimal bundle of x and y.
Question 15
A country's GDP is given by the equation: GDP = C + I + G + \( X - M \). If the country's consumption is ₦500 billion, investment is ₦200 billion, government sp\ending is ₦300 billion, exports are ₦400 billion, and imports are ₦200 billion, calculate the country's GDP.
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