Practice Post UTME BELLS UNIVERSITY economics 2021 Past Questions

Question 1

A firm operating under perfect competition faces a market demand curve that is downward-sloping and has a negative slope. Which of the following is a characteristic of the firm's supply curve?

A. The supply curve is upward-sloping and has a positive slope.

Correct B. The supply curve is horizontal and has a zero slope.

C. The supply curve is downward-sloping and has a negative slope.

D. The supply curve is vertical and has an infinite slope.

Correct Answer: B

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Question 2

A consumer has a budget of ₦1000 and faces the following prices for two goods: Good X \costs ₦200 and Good Y \costs ₦300. If the consumer buys 2 units of Good X, what is the opportunity \cost of buying 1 unit of Good Y?

Correct A. ₦100

B. ₦200

C. ₦300

D. ₦400

Correct Answer: A

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Question 3

A firm is operating under a cons\tant returns to scale production function. If the firm increases its inputs by 10%, what will be the percentage change in its output?

Correct A. 0%

B. 5%

C. 10%

D. 15%

Correct Answer: A

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Question 4

A diagram shows a supply curve that is upward-sloping and has a positive slope. Which of the following is a characteristic of the market structure depicted in the diagram?

A. Monopoly

Correct B. Perfect Competition

C. Oligopoly

D. Monopolistic Competition

Correct Answer: B

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Question 5

A consumer has a budget of ₦500 and faces the following prices for two goods: Good X \costs ₦100 and Good Y \costs ₦200. If the consumer buys 2 units of Good X, what is the opportunity \cost of buying 1 unit of Good Y?

A. ₦50

Correct B. ₦100

C. ₦150

D. ₦200

Correct Answer: B

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Question 6

A firm's production function is given by Q = 2L^$ 1/2 $K^$ 1/2 $, where Q is output, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?

A. 10%

B. 12%

Correct C. 15%

D. 18%

Correct Answer: C

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Question 7

A country's GDP is $100 billion, its imports are $20 billion, and its exports are $25 billion. What is its GDP at market price?

A. $105 billion

B. $110 billion

Correct C. $115 billion

D. $120 billion

Correct Answer: C

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Question 8

A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C = 20 + 5L, where P is price and L is labor. If the firm's labor is 10 units, what is its profit-maximizing price?

A. $20

B. $25

Correct C. $30

D. $35

Correct Answer: C

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Question 9

A firm's revenue function is given by R = 100P - 2P^2, where P is price. If the firm's price is $10, what is its marginal revenue?

A. $80

B. $90

Correct C. $100

D. $110

Correct Answer: C

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Question 10

A country's GNP is $150 billion, its imports are $30 billion, and its exports are $35 billion. What is its GNP at market price?

A. $155 billion

B. $160 billion

Correct C. $165 billion

D. $170 billion

Correct Answer: C

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Question 11

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 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

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?

Correct A. (20, 10)

B. (30, 5)

C. (40, 0)

D. (0, 100)

Correct Answer: A

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Question 13

A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's supply function is given by Q = 2P + 50, what is the equilibrium price and quantity?

A. (₦25, 75)

Correct B. (₦50, 100)

C. (₦75, 125)

D. (₦100, 150)

Correct Answer: B

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Question 14

A country's GDP is ₦100 billion and its GNP is ₦120 billion. What is the country's 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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Question 15

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 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

Consider a perfectly competitive market with 5 firms, each producing a homogeneous product. If the market demand curve is downward sloping and the firms are price takers, what will be the equilibrium price and quantity in the market?

Correct A. $ P = 10, Q = 100 $

B. $ P = 20, Q = 50 $

C. $ P = 30, Q = 20 $

D. $ P = 40, Q = 10 $

Correct Answer: A

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Question 17

A monopolistically competitive firm faces a demand curve given by $ Q = 100 - 2P $. If the firm's marginal revenue curve is given by $ MR = 50 - P $, what is the firm's profit-maximizing price and quantity?

A. $ P = 20, Q = 60 $

Correct B. $ P = 25, Q = 50 $

C. $ P = 30, Q = 40 $

D. $ P = 35, Q = 30 $

Correct Answer: B

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Question 18

A consumer has the following utility function: $ U = 2x + 3y $, where (x) and (y) are the quantities of two goods consumed. If the prices of the two goods are $ P_x = 2 $ and $ P_y = 3 $, and the consumer's income is $ I = 100 $, what is the consumer's optimal bundle of goods?

A. $ x = 20, y = 10 $

Correct B. $ x = 15, y = 15 $

C. $ x = 10, y = 20 $

D. $ x = 5, y = 25 $

Correct Answer: B

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Question 19

Consider a market with a demand curve given by $ Q = 100 - 2P $ and a supply curve given by $ Q = 2P $. If the market is initially in equilibrium, and then a shift in demand occurs, cau\sing the demand curve to shift to $ Q = 80 - 2P $, what will be the new equilibrium price and quantity in the market?

Correct A. $ P = 20, Q = 60 $

B. $ P = 25, Q = 50 $

C. $ P = 30, Q = 40 $

D. $ P = 35, Q = 30 $

Correct Answer: A

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Question 20

A firm has a production function given by $ Q = 2L^2 $, where (L) is the quantity of labor employed. If the wage rate is $ W = 10 $, and the firm's revenue function is given by $ R = 100Q $, what is the firm's profit-maximizing level of labor employment?

A. $ L = 5 $

Correct B. $ L = 10 $

C. $ L = 15 $

D. $ L = 20 $

Correct Answer: B

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Question 21

A farmer in Nigeria faces a trade-off between producing more maize or yams. If the opportunity \cost of producing one more unit of maize is 3 units of yams, and the opportunity \cost of producing one more unit of yams is 2 units of maize, what is the opportunity \cost of producing one more unit of maize?

A. 2

Correct B. 3

C. 4

D. 5

Correct Answer: B

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Question 22

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 = 2P - 100, what is the equilibrium price?

A. 30

Correct B. 50

C. 70

D. 90

Correct Answer: B

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Question 23

A firm produces two goods, X and Y, u\sing two inputs, labor and capital. The production function for good X is given by Q_X = 2L^0.5K^0.5, where Q_X is the quantity of good X produced, L is the amount of labor used, and K is the amount of capital used. The production function for good Y is given by Q_Y = 3L^0.5K^0.5. If the firm has 100 units of labor and 100 units of capital, how much of good X should it produce?

A. 100

Correct B. 200

C. 300

D. 400

Correct Answer: B

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Question 24

A consumer has a budget of ₦1000 and faces the following prices for two goods: good X \costs ₦200 and good Y \costs ₦300. If the consumer's utility function is given by U = 2X + 3Y, where U is the utility level and X and Y are the quantities of goods X and Y consumed, respectively, how much of good X should the consumer buy?

A. 2

Correct B. 3

C. 4

D. 5

Correct Answer: B

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Question 25

A firm produces a good u\sing two inputs, labor and capital. The production function for the good is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the amount of labor used, and K is the amount of capital used. If the firm has 100 units of labor and 100 units of capital, what is the marginal product of labor?

A. 0.2

Correct B. 0.5

C. 1

D. 2

Correct Answer: B

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