Practice Post UTME DELSU economics 2018 Past Questions

Question 1

A country's GDP is ₦1.2 trillion, its GNP is ₦1.3 trillion, and its national savings rate is 20%. What is the country's marginal propensity to consume?

Correct A. 0.6

B. 0.7

C. 0.8

D. 0.9

Correct Answer: A

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Question 2

A firm's revenue function is given by R(x) = 2x^2 + 5x + 1. If the firm's marginal revenue is 10, what is the value of x?

A. 1

Correct B. 2

C. 3

D. 4

Correct Answer: B

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Question 3

A consumer's utility function is given by U(x,y) = 2x + 3y. If the consumer's income is ₦100 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?

A. (10,20)

Correct B. (15,15)

C. (20,10)

D. (25,5)

Correct Answer: B

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Question 4

A firm's \cost function is given by C(x) = 2x^2 + 5x + 1. If the firm's revenue function is R(x) = 3x^2 + 2x + 1, what is the firm's profit function?

Correct A. x^2 + 7x + 2

B. x^2 + 8x + 3

C. x^2 + 9x + 4

D. x^2 + 10x + 5

Correct Answer: A

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Question 5

A country's GDP is ₦1.2 trillion, its GNP is ₦1.3 trillion, and its national savings rate is 20%. What is the country's marginal propensity to consume?

Correct A. 0.6

B. 0.7

C. 0.8

D. 0.9

Correct Answer: A

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Question 6

The agricultural sector in Nigeria contributes significantly to the country's GDP. However, the sector is plagued by low productivity and inefficiencies. What policy intervention would you recomm\end to address these challenges?

A. Investment in irrigation infrastructure

B. Implementation of crop rotation and intercropping practices

Correct C. Introduction of new high-yielding crop varieties

D. Establishment of agricultural cooperatives

Correct Answer: C

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Question 7

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^0.7K^0.3. If the firm uses 100 units of labor and 200 units of capital, what is the total output of the firm?

A. 600

B. 800

Correct C. 1000

D. 1200

Correct Answer: C

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Question 8

The government of Nigeria has introduced a new policy aimed at promoting industrialization in the country. The policy includes a 10% reduction in corporate taxes for companies that invest in research and development. What is the expected effect of this policy on the country's GDP?

Correct A. Increase in GDP

B. Decrease in GDP

C. No change in GDP

D. Uncertainty in GDP

Correct Answer: A

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Question 9

A consumer has a budget of ₦1000 to sp\end on two goods, X and Y. The price of good X is ₦5 per unit, and the price of good Y is ₦10 per unit. The consumer's indifference curve is given by the equation U = 2X^0.5Y^0.5, where U is the level of utility. What is the maximum amount of good X that the consumer can buy?

A. 100

Correct B. 200

C. 300

D. 400

Correct Answer: B

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Question 10

A firm is considering investing in a new project that has a net present value (NPV) of ₦100,000. The firm's \cost of capital is 10% per annum. What is the internal rate of return (IRR) of the project?

A. 5%

Correct B. 10%

C. 15%

D. 20%

Correct Answer: B

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Question 11

A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing price and quantity.

Correct A. P = 40, Q = 30

B. P = 50, Q = 20

C. P = 60, Q = 10

D. P = 70, Q = 5

Correct Answer: A

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Question 12

A consumer's utility function is given by U(x, y) = 2x + 3y. The budget constraint is 2x + 3y = 12. Find the consumer's optimal bundle of x and y.

Correct A. x = 2, y = 4

B. x = 3, y = 3

C. x = 4, y = 2

D. x = 5, y = 1

Correct Answer: A

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Question 13

A country's balance of payments is given by: Exports = 100, Imports = 120, Foreign Aid = 50, and Remit\tances = 20. Find the country's current account deficit.

A. ₦20

Correct B. ₦30

C. ₦40

D. ₦50

Correct Answer: B

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Question 14

A government imposes a tax on a good, cau\sing the supply curve to shift from S1 to S2. The demand curve is given by Q = 100 - 2P. Find the new equilibrium price and quantity.

Correct A. P = 40, Q = 30

B. P = 50, Q = 20

C. P = 60, Q = 10

D. P = 70, Q = 5

Correct Answer: A

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Question 15

A country's agricultural sector is characterized by a production function Q = 2L^0.5K^0.5. The price of labor is ₦100 per unit, and the price of capital is ₦200 per unit. Find the optimal combination of labor and capital.

Correct A. L = 10, K = 20

B. L = 20, K = 10

C. L = 30, K = 5

D. L = 5, K = 30

Correct Answer: A

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Question 16

A consumer's indifference curve is downward sloping because of the law of increa\sing marginal opportunity \cost. What is the opportunity \cost of consuming an additional unit of good X?

Correct A. The opportunity \cost is the amount of good Y that must be given up to consume an additional unit of good X.

B. The opportunity \cost is the amount of good X that must be given up to consume an additional unit of good X.

C. The opportunity \cost is the amount of good Y that must be consumed to consume an additional unit of good X.

D. The opportunity \cost is the amount of good X that must be consumed to consume an additional unit of good X.

Correct Answer: A

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Question 17

A perfectly competitive market has many firms producing a homogeneous product. What is the equilibrium price and quantity in this market?

A. The equilibrium price is $10 and the equilibrium quantity is 100 units.

B. The equilibrium price is $20 and the equilibrium quantity is 50 units.

Correct C. The equilibrium price is $15 and the equilibrium quantity is 75 units.

D. The equilibrium price is $25 and the equilibrium quantity is 25 units.

Correct Answer: C

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Question 18

A country's balance of payments is in equilibrium when its current account is equal to its capital account. What is the value of the current account in this scenario?

A. The current account is equal to $100 million.

B. The current account is equal to $50 million.

Correct C. The current account is equal to $75 million.

D. The current account is equal to $25 million.

Correct Answer: C

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Question 19

A firm's demand curve is downward sloping because of the law of diminishing marginal utility. What is the opportunity \cost of producing an additional unit of good X?

Correct A. The opportunity \cost is the amount of good Y that must be given up to produce an additional unit of good X.

B. The opportunity \cost is the amount of good X that must be given up to produce an additional unit of good X.

C. The opportunity \cost is the amount of good Y that must be consumed to produce an additional unit of good X.

D. The opportunity \cost is the amount of good X that must be consumed to produce an additional unit of good X.

Correct Answer: A

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Question 20

A country's balance of payments is in deficit when its current account is less than its capital account. What is the value of the current account in this scenario?

A. The current account is equal to $100 million.

Correct B. The current account is equal to $50 million.

C. The current account is equal to $75 million.

D. The current account is equal to $25 million.

Correct Answer: B

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Question 21

A firm's supply curve is upward sloping because of the law of increa\sing marginal \cost. What is the opportunity \cost of producing an additional unit of good X?

Correct A. The opportunity \cost is the amount of good Y that must be given up to produce an additional unit of good X.

B. The opportunity \cost is the amount of good X that must be given up to produce an additional unit of good X.

C. The opportunity \cost is the amount of good Y that must be consumed to produce an additional unit of good X.

D. The opportunity \cost is the amount of good X that must be consumed to produce an additional unit of good X.

Correct Answer: A

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Question 22

A country's balance of payments is in surplus when its current account is greater than its capital account. What is the value of the current account in this scenario?

A. The current account is equal to $100 million.

B. The current account is equal to $50 million.

Correct C. The current account is equal to $75 million.

D. The current account is equal to $25 million.

Correct Answer: C

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Question 23

A firm's demand curve is downward sloping because of the law of diminishing marginal utility. What is the opportunity \cost of consuming an additional unit of good X?

Correct A. The opportunity \cost is the amount of good Y that must be given up to consume an additional unit of good X.

B. The opportunity \cost is the amount of good X that must be given up to consume an additional unit of good X.

C. The opportunity \cost is the amount of good Y that must be consumed to consume an additional unit of good X.

D. The opportunity \cost is the amount of good X that must be consumed to consume an additional unit of good X.

Correct Answer: A

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Question 24

A consumer's indifference curve is given by the utility function u(x,y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle?

A. (100, 100)

Correct B. (200, 50)

C. (50, 200)

D. (150, 150)

Correct Answer: B

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Question 25

A government budget is given by the equation B = T + G, where B is the total budget, T is the total tax revenue, and G is the total government exp\enditure. If the total tax revenue is ₦500 billion and the total government exp\enditure is ₦700 billion, what is the total budget?

A. ₦1.2 trillion

Correct B. ₦1.5 trillion

C. ₦1.8 trillion

D. ₦2.0 trillion

Correct Answer: B

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