Practice Post UTME CHRISTOPHER UNIVERSITY economics 2023 Past Questions

Question 1

Consider a firm operating in a perfectly competitive market. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will be the effect on the firm's output?

Correct A. The firm will increase its output.

B. The firm will decrease its output.

C. The firm's output will remain unchanged.

D. The firm will exit the market.

Correct Answer: A

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Question 2

A consumer's indifference curve is given by the equation $ U = 2x + 3y $. If the consumer's initial \endowment is (2, 3), what is the consumer's optimal bundle?

Correct A. (4, 2)

B. (2, 4)

C. (3, 3)

D. (1, 5)

Correct Answer: A

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Question 3

A firm's production function is given by $ Q = 2L^2 + 3K^2 $. If the firm's current input prices are $ w = 10 $ and $ r = 20 $, what is the firm's optimal input bundle?

Correct A. (5, 3)

B. (3, 5)

C. (4, 4)

D. (2, 6)

Correct Answer: A

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Question 4

A country's GDP is given by $ GDP = C + I + G + \( X - M \ $ ). If the country's current values are $ C = 100 $, $ I = 200 $, $ G = 300 $, $ X = 400 $, and $ M = 200 $, what is the country's GDP?

Correct A. 1200

B. 1000

C. 800

D. 600

Correct Answer: A

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Question 5

A firm's demand function is given by $ Q = 100 - 2P $. If the firm's current price is $ P = 20 $, what is the firm's quantity demanded?

Correct A. 60

B. 40

C. 20

D. 10

Correct Answer: A

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Question 6

A firm's demand curve is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the price elasticity of demand is -2, calculate 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 7

A country's GDP is given by the equation Y = C + I + G + $ X - M $, where Y is the GDP, C is the consumption, I is the investment, G is the government sp\ending, X is the exports, and M is the imports. If the country's GDP is 100 billion, consumption is 60 billion, investment is 15 billion, government sp\ending is 20 billion, exports are 25 billion, and imports are 10 billion, calculate the GDP.

A. 80 billion

B. 90 billion

Correct C. 100 billion

D. 110 billion

Correct Answer: C

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Question 8

A central bank uses the money multiplier formula to calculate the money supply. If the reserve requirement is 10%, the money multiplier is 10, and the initial money supply is 100 billion, calculate the new money supply after a 20% increase in the reserve requirement.

A. 120 billion

B. 140 billion

Correct C. 160 billion

D. 180 billion

Correct Answer: C

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Question 9

A government imposes a tax on a good, cau\sing the supply curve to shift to the left. If the original price is 10, the tax causes the price to increase by 20%, and the quantity demanded decreases by 30%, calculate the deadweight loss.

A. 2%

B. 4%

Correct C. 6%

D. 8%

Correct Answer: C

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Question 10

A country's inflation rate is given by the equation π = $ M/P $ - 1, where π is the inflation rate, M is the money supply, and P is the price level. If the money supply is 100 billion, the price level is 10, and the inflation rate is 5%, calculate the new price level after a 10% increase in the money supply.

A. 10.5

B. 11

Correct C. 11.5

D. 12

Correct Answer: C

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Question 11

A firm's total revenue (TR) is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm's marginal revenue (MR) is 80, find the value of x.

A. 10

B. 20

Correct C. 30

D. 40

Correct Answer: C

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Question 12

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 supply of the product is given by the equation Qs = 2P - 100, find the equilibrium price and quantity.

A. 20

Correct B. 30

C. 40

D. 50

Correct Answer: B

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Question 13

A country's balance of payments (BOP) is given by the equation BOP = X - M, where X is the value of exports and M is the value of imports. If the value of exports is ₦100 billion and the value of imports is ₦120 billion, find the balance of payments.

Correct A. ₦20 billion

B. ₦30 billion

C. ₦40 billion

D. ₦50 billion

Correct Answer: A

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Question 14

The money supply (M) in an economy is given by the equation M = 100 + 2Y, where Y is the income. If the income is ₦500 billion, find the money supply.

A. ₦600 billion

Correct B. ₦700 billion

C. ₦800 billion

D. ₦900 billion

Correct Answer: B

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Question 15

The inflation rate (I) in an economy is given by the equation I = 2 + 0.01Y, where Y is the income. If the income is ₦500 billion, find the inflation rate.

A. 2.5%

Correct B. 3.0%

C. 3.5%

D. 4.0%

Correct Answer: B

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Question 16

A firm's production function is given by Q = 100L^0.5K^0.5, 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 17

A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the prices of the two goods are $2 and $3 respectively, and the consumer's income is $15, what is the consumer's optimal bundle of goods?

Correct A. x = 3, y = 2

B. x = 2, y = 3

C. x = 4, y = 1

D. x = 1, y = 4

Correct Answer: A

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Question 18

A firm's demand function for a good is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's marginal \cost is $5, what is the firm's optimal price?

A. $5

Correct B. $10

C. $15

D. $20

Correct Answer: B

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Question 19

A consumer's indifference curve is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is $15 and the prices of the two goods are $2 and $3 respectively, what is the consumer's optimal bundle of goods?

Correct A. x = 3, y = 2

B. x = 2, y = 3

C. x = 4, y = 1

D. x = 1, y = 4

Correct Answer: A

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Question 20

A firm's supply function is given by Q = 2P + 10, where Q is quantity supplied and P is price. If the firm's marginal \cost is $5, what is the firm's optimal price?

A. $5

Correct B. $10

C. $15

D. $20

Correct Answer: B

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Question 21

A consumer's indifference curve is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is $15 and the prices of the two goods are $2 and $3 respectively, what is the consumer's optimal bundle of goods?

Correct A. x = 3, y = 2

B. x = 2, y = 3

C. x = 4, y = 1

D. x = 1, y = 4

Correct Answer: A

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Question 22

A firm's production function is given by Q = 100L^0.5K^0.5, 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 23

A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the prices of the two goods are $2 and $3 respectively, and the consumer's income is $15, what is the consumer's optimal bundle of goods?

Correct A. x = 3, y = 2

B. x = 2, y = 3

C. x = 4, y = 1

D. x = 1, y = 4

Correct Answer: A

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Question 24

Consider a country with a GDP of ₦10 trillion and a population of 200 million. If the average annual income is ₦50,000, what is the implied GDP per capita?

Correct A. ₦50,000

B. ₦25,000

C. ₦100,000

D. ₦200,000

Correct Answer: A

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Question 25

A firm's \cost function is given by C(x) = 2x^2 + 100x. If the firm produces 50 units, what is the total \cost?

A. ₦12,500

B. ₦15,000

Correct C. ₦17,500

D. ₦20,000

Correct Answer: C

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