Practice Post UTME DELSU economics 2022 Past Questions

Question 1

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.

Correct A. (200, 80)

B. (100, 50)

C. (50, 100)

D. (0, 0)

Correct Answer: A

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Question 2

A government budget is given by the equation $ B = 1000 + 0.2Y $, where B is the budget and Y is the national income. If the national income is ₦5000, find the government's budget.

Correct A. ₦1200

B. ₦1000

C. ₦1500

D. ₦2000

Correct Answer: A

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Question 3

A firm's \cost function is given by the equation ( C(x) = 100 + 2x + 0.01x^2 ). If the firm produces 100 units of the good, find the total \cost.

A. ₦1200

B. ₦1500

Correct C. ₦1800

D. ₦2000

Correct Answer: C

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Question 4

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.

Correct A. ₦2000

B. ₦1000

C. ₦5000

D. ₦3000

Correct Answer: A

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Question 5

A firm's revenue function is given by the equation ( R(x) = 50x - 0.1x^2 ). If the firm produces 100 units of the good, find the total revenue.

A. ₦4500

Correct B. ₦5000

C. ₦5500

D. ₦6000

Correct Answer: B

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Question 6

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.

Correct 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.

Correct Answer: B

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Question 7

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.

Correct 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.

Correct Answer: B

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Question 8

A consumer is faced with the following budget constraint: 2x + 3y = 100, where x is the number of units of good X and y is the number of units of good Y. If the price of good X is $5 per unit and the price of good Y is $10 per unit, and the consumer's income is $100, what is the opportunity \cost of consuming one more unit of good Y?

A. The opportunity \cost of consuming one more unit of good Y is $5.

Correct B. The opportunity \cost of consuming one more unit of good Y is $10.

C. The opportunity \cost of consuming one more unit of good Y is $15.

D. The opportunity \cost of consuming one more unit of good Y is $20.

Correct Answer: B

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Question 9

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.

Correct 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.

Correct Answer: B

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Question 10

A consumer is faced with the following budget constraint: 2x + 3y = 100, where x is the number of units of good X and y is the number of units of good Y. If the price of good X is $5 per unit and the price of good Y is $10 per unit, and the consumer's income is $100, what is the opportunity \cost of consuming one more unit of good Y?

A. The opportunity \cost of consuming one more unit of good Y is $5.

Correct B. The opportunity \cost of consuming one more unit of good Y is $10.

C. The opportunity \cost of consuming one more unit of good Y is $15.

D. The opportunity \cost of consuming one more unit of good Y is $20.

Correct Answer: B

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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 D(p) = 100 - 2p and the marginal \cost (MC) of each firm is 10, what is the equilibrium price and quantity?

Correct A. $ p = 20, q = 60 $

B. $ p = 30, q = 50 $

C. $ p = 40, q = 40 $

D. $ p = 50, q = 30 $

Correct Answer: A

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Question 12

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?

Correct A. ₦100 billion

B. ₦150 billion

C. ₦200 billion

D. ₦250 billion

Correct Answer: A

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Question 13

A monopolist faces a demand curve D(p) = 100 - 2p and has a marginal \cost (MC) of 10. If the firm's marginal revenue (MR) is 20, what is the equilibrium price and quantity?

Correct A. $ p = 20, q = 40 $

B. $ p = 30, q = 30 $

C. $ p = 40, q = 20 $

D. $ p = 50, q = 10 $

Correct Answer: A

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Question 14

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor (L) is 4 units and capital (K) is 9 units, what is the firm's current output?

A. 12

B. 15

Correct C. 18

D. 20

Correct Answer: C

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Question 15

A country's GNP is ₦1,500 billion, its GDP is ₦1,200 billion, and its net factor income from abroad is ₦100 billion. What is its national income?

Correct A. ₦1,700 billion

B. ₦1,800 billion

C. ₦1,900 billion

D. ₦2,000 billion

Correct Answer: A

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Question 16

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 17

A firm is producing a good with a total revenue of TR = 1000 + 20Q - 0.5Q^2, where Q is the quantity produced. If the firm's marginal revenue is 15, what is the quantity produced?

A. 20

Correct B. 30

C. 40

D. 50

Correct Answer: B

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Question 18

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

Correct B. 30

C. 40

D. 50

Correct Answer: B

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Question 19

A firm is producing a good with a total \cost of TC = 1000 + 20Q + 0.5Q^2. If the firm's marginal revenue is 15, what is the quantity produced?

A. 20

Correct B. 30

C. 40

D. 50

Correct Answer: B

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Question 20

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

Correct B. 30

C. 40

D. 50

Correct Answer: B

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Question 21

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

Correct C. $600 million

D. $800 million

Correct Answer: C

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Question 22

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

Correct B. ₦60

C. ₦70

D. ₦80

Correct Answer: B

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Question 23

A consumer has a utility function U(X,Y) = 2X + 3Y. If the prices of X and Y are ₦5 and ₦3 respectively, and the consumer has a budget of ₦20, what is the optimal bundle of X and Y?

A. (2,4)

Correct B. (4,2)

C. (1,3)

D. (3,1)

Correct Answer: B

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Question 24

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

Correct A. Increase government sp\ending

B. Reduce taxes

C. Increase interest rates

D. Reduce government sp\ending

Correct Answer: A

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Question 25

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

Correct B. Sorghum

C. Either crop

D. Neither crop

Correct Answer: B

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