Practice Post UTME DELSU economics 2022 Past Questions

Question 1

A firm produces two goods, A and B, u\sing two inputs, labor and capital. The production function for good A is given by $ Q_A = 10L^0.5K^0.5 $ and for good B is given by $ Q_B = 5L^0.2K^0.8 $. If the firm has 100 units of labor and 50 units of capital, how many units of good A and good B should it produce to maximize profit?

A. Good A: 50 units, Good B: 25 units

B. Good A: 75 units, Good B: 10 units

C. Good A: 25 units, Good B: 50 units

D. Good A: 10 units, Good B: 75 units

Question 2

A farmer is considering whether to plant maize or sorghum on his farm. The price of maize is ₦100 per bag and the price of sorghum is ₦120 per bag. If the farmer's opportunity \cost of planting maize is ₦80 per bag and the opportunity \cost of planting sorghum is ₦60 per bag, which crop should the farmer plant?

A. Maize

B. Sorghum

C. Either crop

D. Neither crop

Question 3

A firm is producing a good with a production function of Q = 2L + 3K, where L is labor and K is capital. If the price of labor is $10 per hour and the price of capital is $20 per hour, and the firm is currently producing 100 units of the good, what is the opportunity \cost of producing one more unit of the good?

A. The opportunity \cost of producing one more unit of the good is $20.

B. The opportunity \cost of producing one more unit of the good is $30.

C. The opportunity \cost of producing one more unit of the good is $40.

D. The opportunity \cost of producing one more unit of the good is $50.

Question 4

A country's GDP is ₦1,200 billion, its imports are ₦300 billion, and its exports are ₦250 billion. What is its net foreign exchange earnings?

A. ₦100 billion

B. ₦150 billion

C. ₦200 billion

D. ₦250 billion

Question 5

Consider a country with a trade deficit of ₦100 billion and a current account deficit of ₦80 billion. If the country's exchange rate is ₦200 per dollar, what is the value of the trade deficit in dollars?

A. $500 million

B. $400 million

C. $600 million

D. $800 million

Question 6

A consumer's indifference curve is represented by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, find the consumer's optimal bundle of x and y.

A. (200, 80)

B. (100, 50)

C. (50, 100)

D. (0, 0)

Question 7

Consider a firm operating in a perfectly competitive market. If the firm's average total \cost (ATC) curve intersects the average revenue (AR) curve at a point where the ATC curve is downward sloping, what can be concluded about the firm's production level?

A. The firm is producing at a level where marginal \cost (MC) equals marginal revenue (MR)

B. The firm is producing at a level where ATC is equal to AR

C. The firm is producing at a level where MC is greater than MR

D. The firm is producing at a level where MC is less than MR

Question 8

A consumer has a budget of ₦10,000 to sp\end on two goods, X and Y. The price of good X is ₦2,000 and the price of good Y is ₦3,000. If the consumer sp\ends all of their budget on the two goods, which of the following is true?

A. The consumer will buy 5 units of good X and 3 units of good Y

B. The consumer will buy 3 units of good X and 5 units of good Y

C. The consumer will buy 2 units of good X and 2 units of good Y

D. The consumer will not buy any units of good Y

Question 9

A country is experiencing a recession and the government wants to implement a fiscal policy to stimulate economic growth. Which of the following fiscal policies would be most effective in stimulating economic growth?

A. Increase government sp\ending

B. Decrease taxes

C. Increase interest rates

D. Decrease government sp\ending

Question 10

The government of a country has decided to implement a policy of reducing the income tax rate from 25% to 20% to boost economic growth. However, the reduction in tax rate will lead to a decrease in government revenue. U\sing the concept of opportunity \cost, explain why the government's decision to reduce the income tax rate is a good idea.

A. The reduction in tax rate will lead to an increase in consumer sp\ending, which will boost economic growth.

B. The reduction in tax rate will lead to a decrease in government revenue, which will reduce the opportunity \cost of the policy.

C. The reduction in tax rate will lead to an increase in investment, which will boost economic growth.

D. The reduction in tax rate will lead to a decrease in economic growth, which will increase the opportunity \cost of the policy.

Question 11

A monopolist is producing a good with a demand curve given by P = 100 - 2Q. If the firm's marginal \cost is 10, what is the quantity produced?

A. 20

B. 30

C. 40

D. 50

Question 12

A country's balance of payments is given by the equation $ BOP = X - M $, where BOP is the balance of payments, X is the exports and M is the imports. If the country's exports are ₦5000 and imports are ₦3000, find the balance of payments.

A. ₦2000

B. ₦1000

C. ₦5000

D. ₦3000

Question 13

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

A. ₦50

B. ₦60

C. ₦70

D. ₦80

Question 14

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%?

A. 5%

B. 10%

C. 15%

D. 20%

Question 15

A firm is considering two investment projects, A and B. Project A has a \cost of $100,000 and an expected return of 10%. Project B has a \cost of $150,000 and an expected return of 15%. Which project should the firm choose if it wants to maximize its return on investment?

A. Project A

B. Project B

C. Both projects are equally profitable

D. Neither project is profitable

POST UTME DELSU 2022 Economics | Objective

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