Practice Post UTME BSU economics 2022 Past Questions

Question 1

A firm's production function is given by Q = 2L^0.5K^0.5, where L is labor and K is capital. If the firm's current labor and capital inputs are L = 4 and K = 9, respectively, what is the firm's marginal product of labor (MPL) at this point?

A. 1

Correct B. 2

C. 3

D. 4

Correct Answer: B

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Question 2

A consumer's budget constraint is given by P_xX + P_yY = I, where P_x and P_y are the prices of goods X and Y, respectively, X and Y are the quantities of goods X and Y consumed, and I is the consumer's income. If the consumer's income is I = 100, the price of good X is P_x = 10, and the price of good Y is P_y = 20, what is the consumer's optimal quantity of good X?

A. 2

B. 4

Correct C. 6

D. 8

Correct Answer: C

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Question 3

A firm's production function is given by Q = 2L^0.5K^0.5, where L is labor and K is capital. If the firm's current labor and capital inputs are L = 4 and K = 9, respectively, what is the firm's total product of labor (TPL) at this point?

A. 8

B. 16

Correct C. 32

D. 64

Correct Answer: C

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Question 4

A consumer's budget constraint is given by P_xX + P_yY = I, where P_x and P_y are the prices of goods X and Y, respectively, X and Y are the quantities of goods X and Y consumed, and I is the consumer's income. If the consumer's income is I = 100, the price of good X is P_x = 10, and the price of good Y is P_y = 20, what is the consumer's optimal quantity of good Y?

A. 2

B. 4

C. 6

Correct D. 8

Correct Answer: D

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Question 5

A firm's production function is given by Q = 2L^0.5K^0.5, where L is labor and K is capital. If the firm's current labor and capital inputs are L = 4 and K = 9, respectively, what is the firm's marginal product of capital (MPC) at this point?

A. 1

B. 2

C. 3

Correct D. 4

Correct Answer: D

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Question 6

Suppose 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 -2, what is the percentage change in quantity demanded when the price increases by 10%?

Correct A. -20%

B. -10%

C. 0%

D. 10%

Correct Answer: A

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Question 7

A firm has a \cost function C(x) = 2x^2 + 10x + 5, where x is the number of units produced. If the firm produces 10 units, what is the total \cost?

A. ₦125

B. ₦150

Correct C. ₦175

D. ₦200

Correct Answer: C

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Question 8

The supply curve for a product is given by the equation Qs = 2P - 10, where Qs is the quantity supplied and P is the price. If the price is 15, what is the quantity supplied?

A. 10

Correct B. 15

C. 20

D. 25

Correct Answer: B

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Question 9

A country's GDP is given by the equation 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 ₦1000 billion, and the values of C, I, G, X, and M are ₦300 billion, ₦200 billion, ₦150 billion, ₦250 billion, and ₦100 billion respectively, what is the value of exports?

A. ₦250 billion

B. ₦300 billion

Correct C. ₦350 billion

D. ₦400 billion

Correct Answer: C

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Question 10

A firm has a revenue function R(x) = 3x^2 - 5x + 2, where x is the number of units sold. If the firm sells 5 units, what is the total revenue?

A. ₦20

B. ₦25

Correct C. ₦30

D. ₦35

Correct Answer: C

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Question 11

Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is downward sloping and the firms are price takers, what is the relationship between the marginal \cost (MC) and the market price (P)?

Correct A. MC = P

B. MC > P

C. MC < P

D. MC = 0

Correct Answer: A

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Question 12

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 goal is to maximize profits, and the price of output is P = 10, what is the optimal level of labor (L) to hire, given that the price of capital is 2?

A. L = 4

B. L = 8

Correct C. L = 16

D. L = 32

Correct Answer: C

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Question 13

A country's GDP is 100 billion naira, and its GNP is 120 billion naira. What is the country's net factor income from abroad?

A. 20 billion naira

Correct B. 30 billion naira

C. 40 billion naira

D. 50 billion naira

Correct Answer: B

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Question 14

A firm's demand curve is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's marginal revenue (MR) is 20, what is the optimal price to charge?

A. P = 10

Correct B. P = 20

C. P = 30

D. P = 40

Correct Answer: B

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Question 15

A country's agricultural sector is characterized by a downward-sloping supply curve. If the government imposes a price floor of 10, what is the likely effect on the quantity supplied?

A. Quantity supplied increases

Correct B. Quantity supplied decreases

C. Quantity supplied remains the same

D. Quantity supplied becomes zero

Correct Answer: B

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Question 16

Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, and it currently uses 100 units of labor and 50 units of capital, calculate the firm's current total \cost.

A. ₦2000

B. ₦2500

Correct C. ₦3000

D. ₦3500

Correct Answer: C

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Question 17

Agricultural production in Nigeria is characterized by low productivity and low output. What could be the possible reasons for this?

A. Low investment in agricultural research and development

B. High population growth rate

C. Climate change

Correct D. All of the above

Correct Answer: D

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Question 18

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 is currently ₦50, what is the quantity demanded?

A. 20

Correct B. 30

C. 40

D. 50

Correct Answer: B

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Question 19

A government imposes a tax of ₦10 on every unit of a product. If the supply curve is given by Qs = 2P - 10, what is the new supply curve after the tax is imposed?

A. Qs = 2P - 20

Correct B. Qs = 2P - 15

C. Qs = 2P - 10

D. Qs = 2P + 10

Correct Answer: B

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Question 20

A firm's production function is given by Q = 3L^0.5K^0.5. If the firm currently uses 100 units of labor and 50 units of capital, and the input prices are w = 10 and r = 20, calculate the firm's current total \cost.

A. ₦3000

B. ₦3500

Correct C. ₦4000

D. ₦4500

Correct Answer: C

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Question 21

The government of Nigeria has implemented a policy to increase agricultural production. What could be the possible reasons for this policy?

A. To increase food security

B. To reduce poverty

C. To increase economic growth

Correct D. All of the above

Correct Answer: D

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Question 22

A firm's demand function is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price is currently ₦50, what is the quantity demanded?

A. 20

Correct B. 30

C. 40

D. 50

Correct Answer: B

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Question 23

The government of Nigeria has implemented a policy to increase industrial production. What could be the possible reasons for this policy?

A. To increase economic growth

B. To reduce unemployment

C. To increase exports

Correct D. All of the above

Correct Answer: D

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Question 24

A firm's supply function is given by Qs = 2P - 10, where Qs is the quantity supplied and P is the price. If the price is currently ₦20, what is the quantity supplied?

A. 10

Correct B. 20

C. 30

D. 40

Correct Answer: B

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Question 25

The government of Nigeria has implemented a policy to increase agricultural production. What could be the possible reasons for this policy?

A. To increase food security

B. To reduce poverty

C. To increase economic growth

D. All of the above

Correct Answer: VIEW ANSWER

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