Practice Post UTME BOWEN UNIVERSITY economics 2019 Past Questions

Question 1

Determine the elasticity of demand for a product whose price elasticity of demand is 0.5 and the quantity demanded is 100 units when the price is ₦100.

Correct A. 0.5

B. 1.0

C. 2.0

D. 3.0

Correct Answer: A

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Question 2

A country's GDP is ₦1.2 trillion, its imports are ₦400 billion, and its exports are ₦300 billion. Calculate the country's GNP.

Correct A. ₦1.5 trillion

B. ₦1.2 trillion

C. ₦1.1 trillion

D. ₦1.0 trillion

Correct Answer: A

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Question 3

A monopolist faces a demand curve given by Q = 100 - 2P. The marginal revenue function is MR = 50 - 2Q. Find the profit-maximizing quantity.

A. 50 units

Correct B. 75 units

C. 100 units

D. 125 units

Correct Answer: B

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Question 4

A consumer's utility function is given by U = 2x + 3y. The budget constraint is 2x + 3y = ₦100. Find the consumer's optimal consumption bundle.

Correct A. (20, 30)

B. (30, 20)

C. (40, 10)

D. (10, 40)

Correct Answer: A

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Question 5

A firm is considering two production techno\logies: one that produces 100 units of output per hour and another that produces 200 units of output per hour. The \cost of the first techno\logy is ₦500 per hour, and the \cost of the second techno\logy is ₦750 per hour. Find the firm's optimal production techno\logy.

A. Techno\logy 1

Correct B. Techno\logy 2

C. Both techno\logies

D. Neither techno\logy

Correct Answer: B

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Question 6

A country's economic growth is influenced by its human capital, natural resources, and techno\logical advancements. However, the country's economic growth is hindered by a lack of infrastructure, corruption, and a brain drain. U\sing the concept of opportunity \cost, explain why the country's economic growth is hindered by a brain drain.

Correct A. The brain drain leads to a loss of skilled workers, resulting in a decrease in the country's productivity and economic growth.

B. The brain drain leads to an increase in the country's population, resulting in a decrease in the country's economic growth.

C. The brain drain leads to an increase in the country's foreign exchange earnings, resulting in an increase in the country's economic growth.

D. The brain drain leads to a decrease in the country's foreign exchange earnings, resulting in a decrease in the country's economic growth.

Correct Answer: A

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Question 7

A firm is operating in a perfectly competitive market. The firm's demand curve is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The firm's supply curve is given by the equation Qs = 2P - 10, where Qs is the quantity supplied and P is the price. U\sing the concept of supply and demand, explain why the firm is operating in a perfectly competitive market.

Correct A. The firm is operating in a perfectly competitive market because the demand curve is downward-sloping and the supply curve is upward-sloping.

B. The firm is operating in a perfectly competitive market because the demand curve is upward-sloping and the supply curve is downward-sloping.

C. The firm is operating in a perfectly competitive market because the demand curve is horizontal and the supply curve is vertical.

D. The firm is operating in a perfectly competitive market because the demand curve is vertical and the supply curve is horizontal.

Correct Answer: A

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Question 8

A country is experiencing a trade deficit due to an increase in imports and a decrease in exports. U\sing the concept of balance of payments, explain why the country is experiencing a trade deficit.

Correct A. The country is experiencing a trade deficit because the value of imports is greater than the value of exports.

B. The country is experiencing a trade deficit because the value of exports is greater than the value of imports.

C. The country is experiencing a trade deficit because the value of imports is equal to the value of exports.

D. The country is experiencing a trade deficit because the value of exports is equal to the value of imports.

Correct Answer: A

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Question 9

A firm is operating in a monopoly market. The firm's demand curve is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The firm's supply curve is given by the equation Qs = 2P - 10, where Qs is the quantity supplied and P is the price. U\sing the concept of supply and demand, explain why the firm is operating in a monopoly market.

A. The firm is operating in a monopoly market because the demand curve is downward-sloping and the supply curve is upward-sloping.

Correct B. The firm is operating in a monopoly market because the demand curve is upward-sloping and the supply curve is downward-sloping.

C. The firm is operating in a monopoly market because the demand curve is horizontal and the supply curve is vertical.

D. The firm is operating in a monopoly market because the demand curve is vertical and the supply curve is horizontal.

Correct Answer: B

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Question 10

A country is experiencing a recession due to a decrease in aggregate demand. U\sing the concept of macroeconomic variables, explain why the country is experiencing a recession.

A. The country is experiencing a recession because the value of aggregate demand is greater than the value of aggregate supply.

Correct B. The country is experiencing a recession because the value of aggregate demand is less than the value of aggregate supply.

C. The country is experiencing a recession because the value of aggregate demand is equal to the value of aggregate supply.

D. The country is experiencing a recession because the value of aggregate demand is not equal to the value of aggregate supply.

Correct Answer: B

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Question 11

Suppose the demand for a commodity is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is -2, what is the percentage change in quantity demanded when the price increases by 10%?

Correct A. 20%

B. 30%

C. 40%

D. 50%

Correct Answer: A

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Question 12

Consider a production function f(x) = x^2, where x is the input. If the marginal product of labor is 2x, what is the return to scale of the production function?

A. Increa\sing Returns to Scale

B. Decrea\sing Returns to Scale

Correct C. Cons\tant Returns to Scale

D. No Returns to Scale

Correct Answer: C

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Question 13

A country's GDP is ₦1,000,000,000. If the country's net factor income from abroad is ₦200,000,000, what is the country's GNP?

Correct A. ₦1,200,000,000

B. ₦1,100,000,000

C. ₦1,000,000,000

D. ₦900,000,000

Correct Answer: A

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Question 14

Suppose a country's trade balance is in surplus by ₦100,000,000. If the country's exports are ₦500,000,000 and its imports are ₦400,000,000, what is the country's balance of payments surplus?

Correct A. ₦100,000,000

B. ₦200,000,000

C. ₦300,000,000

D. ₦400,000,000

Correct Answer: A

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Question 15

Consider a market with a demand function Qd = 100 - 2P and a supply function Qs = 2P + 10. If the market is in equilibrium, what is the price and quantity of the commodity?

A. Price = ₦20, Quantity = 40

Correct B. Price = ₦30, Quantity = 50

C. Price = ₦40, Quantity = 60

D. Price = ₦50, Quantity = 70

Correct Answer: B

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Question 16

A firm's revenue function is given by R(x) = 2x^2 + 10x + 5, where x is the number of units produced. If the firm's marginal revenue function is MR(x) = 4x + 10, find the value of x that maximizes the firm's revenue.

A. 5

Correct B. 10

C. 15

D. 20

Correct Answer: B

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Question 17

A consumer's utility function is given by U(x, y) = 2x^2 + 3y^2, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 2x + 3y = 12, find the optimal values of x and y.

Correct A. x = 2, y = 2

B. x = 3, y = 3

C. x = 4, y = 4

D. x = 5, y = 5

Correct Answer: A

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Question 18

A firm's \cost function is given by C(x) = 2x^2 + 10x + 5, where x is the number of units produced. If the firm's revenue function is R(x) = 4x^2 + 10x + 5, find the value of x that minimizes the firm's \cost.

A. 5

Correct B. 10

C. 15

D. 20

Correct Answer: B

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Question 19

A consumer's budget constraint is given by 2x + 3y = 12, where x and y are the quantities of two goods consumed. If the consumer's utility function is U(x, y) = 2x^2 + 3y^2, find the optimal values of x and y.

Correct A. x = 2, y = 2

B. x = 3, y = 3

C. x = 4, y = 4

D. x = 5, y = 5

Correct Answer: A

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Question 20

A firm's revenue function is given by R(x) = 4x^2 + 10x + 5, where x is the number of units produced. If the firm's marginal revenue function is MR(x) = 8x + 10, find the value of x that maximizes the firm's revenue.

A. 5

Correct B. 10

C. 15

D. 20

Correct Answer: B

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Question 21

The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, what is the percentage change in quantity demanded when the price increases by 10%?

Correct A. 5%

B. 10%

C. 15%

D. 20%

Correct Answer: A

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Question 22

A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production functions are given by X = 2L + 3K and Y = 3L + 2K. If the firm has 10 units of labor and 8 units of capital, what is the total output?

A. 40

B. 50

Correct C. 60

D. 70

Correct Answer: C

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Question 23

A consumer has a utility function given by U = 2X + 3Y, where X and Y are the quantities of two goods consumed. If the prices of the goods are $2 and $3 respectively, and the consumer has a budget of $10, what is the optimal bundle of goods?

A. X = 2, Y = 2

Correct B. X = 3, Y = 1

C. X = 4, Y = 0

D. X = 0, Y = 3

Correct Answer: B

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Question 24

A firm has a \cost function given by C = 2Q + 3Q^2, where Q is the quantity produced. If the firm produces 5 units, what is the total \cost?

A. 35

B. 40

Correct C. 45

D. 50

Correct Answer: C

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Question 25

A market is in equilibrium when the quantity supplied equals the quantity demanded. If the supply function is given by Qs = 2P + 5 and the demand function is given by Qd = 100 - 2P, what is the equilibrium price?

A. 15

B. 20

Correct C. 25

D. 30

Correct Answer: C

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