Practice Post UTME AL-HIKMAH UNIVERSITY economics 2020 Past Questions

Question 1 View Details

Consider a firm operating in a perfectly competitive market with a production function given by Q = 2L^0.5K^0.5. If the price of the good is $10 and the wage rate is $5, what is the optimal level of labor (L) and capital (K) that the firm should employ?

A. $ L = 100, K = 100 $

B. $ L = 25, K = 25 $

Correct C. $ L = 50, K = 50 $

D. $ L = 200, K = 200 $

Correct Answer: C

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Question 2 View Details

A consumer has the following utility function: U = 2x + 3y. If the prices of x and y are $2 and $3 respectively, and the consumer has a budget of $10, what is the optimal level of x and y that the consumer should consume?

A. $ x = 2, y = 2 $

Correct B. $ x = 3, y = 1 $

C. $ x = 4, y = 0 $

D. $ x = 1, y = 3 $

Correct Answer: B

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Question 3 View Details

Consider a country with a GDP of $100 billion and a GNP of $120 billion. If the country has a net factor income from abroad of $10 billion, what is the country's national income?

A. $110 billion

B. $120 billion

Correct C. $130 billion

D. $140 billion

Correct Answer: C

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Question 4 View Details

A government imposes a tax of 10% on a good. If the price of the good is $100, what is the new price of the good after the tax is imposed?

A. $90

B. $100

Correct C. $110

D. $120

Correct Answer: C

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Question 5 View Details

Consider a firm with a production function given by Q = 2L^0.5K^0.5. If the price of the good is $10 and the wage rate is $5, what is the optimal level of labor (L) and capital (K) that the firm should employ?

A. $ L = 100, K = 100 $

B. $ L = 25, K = 25 $

Correct C. $ L = 50, K = 50 $

D. $ L = 200, K = 200 $

Correct Answer: C

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Question 6 View Details

A firm's total revenue is given by the equation $ TR = 100x - 2x^2 $, where ( x ) is the number of units sold. If the firm's marginal revenue is $ MR = 100 - 4x $, find the value of ( x ) at which the firm's marginal revenue equals its average revenue.

A. 10

Correct B. 20

C. 30

D. 40

Correct Answer: B

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Question 7 View Details

The demand for a product is given by the equation $ Q = 100 - 2P $, where ( Q ) is the quantity demanded and ( P ) is the price. If the supply of the product is given by the equation $ Q = 50 + 3P $, find the equilibrium price and quantity.

A. 20

B. 30

Correct C. 40

D. 50

Correct Answer: C

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Question 8 View Details

A firm's \cost function is given by the equation ( C(x) = 100 + 2x + 0.01x^2 ), where ( x ) is the number of units produced. If the firm's revenue function is given by the equation ( R(x) = 200x - 0.05x^2 ), find the profit-maximizing level of production.

A. 100

B. 200

Correct C. 300

D. 400

Correct Answer: C

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Question 9 View Details

The demand for a product is given by the equation $ Q = 100 - 2P $, where ( Q ) is the quantity demanded and ( P ) is the price. If the supply of the product is given by the equation $ Q = 50 + 3P $, find the elasticity of demand at the equilibrium price.

A. 0.5

Correct B. 1

C. 2

D. 3

Correct Answer: B

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Question 10 View Details

A firm's production function is given by the equation $ Q = 100 + 2x + 0.01x^2 $, where ( x ) is the number of units produced. If the firm's \cost function is given by the equation ( C(x) = 100 + 2x + 0.01x^2 ), find the marginal product of labor.

A. 2

Correct B. 4

C. 6

D. 8

Correct Answer: B

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Question 11 View Details

A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor and H is capital. If the firm wants to increase its output by 20% while keeping labor cons\tant, what percentage increase in capital is required?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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Question 12 View Details

A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?

A. (20, 10)

Correct B. (15, 15)

C. (10, 20)

D. (5, 25)

Correct Answer: B

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Question 13 View Details

A firm's \cost function is given by C = 2L + 3H, where C is \cost, L is labor and H is capital. If the firm wants to minimize its \cost while producing 100 units of output, what is the optimal combination of labor and capital?

Correct A. (50, 25)

B. (25, 50)

C. (10, 90)

D. (90, 10)

Correct Answer: A

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Question 14 View Details

A consumer's budget constraint is given by 2x + 3y = 100, where x and y are the quantities of two goods. If the consumer's utility function is given by U = 2x + 3y, what is the consumer's optimal bundle of goods?

A. (20, 10)

Correct B. (15, 15)

C. (10, 20)

D. (5, 25)

Correct Answer: B

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Question 15 View Details

A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor and H is capital. If the firm wants to increase its output by 20% while keeping labor cons\tant, what percentage increase in capital is required?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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Question 16 View Details

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, while keeping capital cons\tant at 16 units, what is the percentage change in output?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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Question 17 View Details

A consumer's demand function for a good is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the price of the good increases from ₦50 to ₦75, what is the percentage change in quantity demanded?

A. -20%

Correct B. -30%

C. -40%

D. -50%

Correct Answer: B

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Question 18 View Details

A firm's \cost function is given by C = 2L + 3K, where C is \cost, L is labor and K is capital. If the firm increases labor from 4 units to 9 units, while keeping capital cons\tant at 16 units, what is the percentage change in \cost?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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Question 19 View Details

A consumer's demand function for a good is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the price of the good increases from ₦50 to ₦75, what is the elasticity of demand?

A. Inelastic

B. Unit Elastic

Correct C. Elastic

D. Perfectly Elastic

Correct Answer: C

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Question 20 View Details

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 capital from 16 units to 25 units, while keeping labor cons\tant at 4 units, what is the percentage change in output?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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Question 21 View Details

The following table shows the balance of payments for a country in a given year. What is the value of the current account balance?

A. ₦100 billion

B. ₦200 billion

Correct C. ₦300 billion

D. ₦400 billion

Correct Answer: C

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Question 22 View Details

A firm has a production function given by Q = 2L^$ 1/2 $K^$ 1/2 $. If the price of labor is ₦10 per unit and the price of capital is ₦20 per unit, what is the \cost-minimizing level of labor?

A. 10 units

Correct B. 20 units

C. 30 units

D. 40 units

Correct Answer: B

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Question 23 View Details

A consumer has the following utility function: U = 2x + 3y. If the prices of x and y are ₦5 and ₦10 respectively, and the consumer has a budget of ₦50, what is the optimal consumption bundle?

A. x = 5, y = 3

Correct B. x = 10, y = 5

C. x = 15, y = 10

D. x = 20, y = 15

Correct Answer: B

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Question 24 View Details

A firm has a \cost function given by C = 2L + 3K. If the price of labor is ₦10 per unit and the price of capital is ₦20 per unit, what is the \cost-minimizing level of capital?

A. 10 units

B. 20 units

Correct C. 30 units

D. 40 units

Correct Answer: C

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Question 25 View Details

A country has a GDP of ₦100 billion and a GNP of ₦120 billion. What is the value of the net factor income from abroad?

A. ₦20 billion

Correct B. ₦30 billion

C. ₦40 billion

D. ₦50 billion

Correct Answer: B

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