Practice Post UTME EKSU economics 2019 Past Questions

Question 1

Determine the price elasticity of demand for a product whose demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the price increases by 10% and the quantity demanded decreases by 15%, what is the price elasticity of demand?

Correct A. -1.5

B. -2.5

C. -1.0

D. -0.5

Correct Answer: A

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Question 2

A firm's \cost function is given by C(x) = 2x^2 + 10x + 50, where x is the number of units produced. If the firm produces 20 units, what is the total \cost?

A. $500

B. $600

Correct C. $700

D. $800

Correct Answer: C

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Question 3

A monopolist faces a demand curve given by P = 100 - 2Q, where P is the price and Q is the quantity demanded. If the firm's marginal revenue function is given by MR = 50 - 2Q, what is the profit-maximizing quantity?

A. 20

B. 30

Correct C. 40

D. 50

Correct Answer: C

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Question 4

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 consumption is 500, investment is 200, government sp\ending is 300, exports are 400, and imports are 200, what is the GDP?

A. $1500

B. $1600

Correct C. $1700

D. $1800

Correct Answer: C

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Question 5

A firm's supply function is given by Q = 2P + 10, where Q is the quantity supplied and P is the price. If the price increases by 10%, what is the new quantity supplied?

A. 20

B. 30

Correct C. 40

D. 50

Correct Answer: C

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Question 6

Calculate the value of the definite integral $ int_{0}^{2} \( 2x^2 + 3x - 4 \ $ dx ) u\sing the fundamental theorem of calculus.

Correct A. 8

B. 10

C. 12

D. 14

Correct Answer: A

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Question 7

A firm's \cost function is given by ( C(x) = 2x^2 + 10x + 5 ). Find the marginal \cost function.

Correct A. 4x + 10

B. 2x + 5

C. x + 2

D. x - 2

Correct Answer: A

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Question 8

A consumer's demand function for a product is given by $ Q = 100 - 2P $. Find the elasticity of demand when the price is $20.

Correct A. 0.5

B. 1

C. 2

D. 5

Correct Answer: A

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Question 9

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

A. $10 billion

Correct B. $20 billion

C. $30 billion

D. $40 billion

Correct Answer: B

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Question 10

A firm's supply function is given by $ Q = 2P - 10 $. Find the equilibrium price and quantity when the demand function is $ Q = 100 - 2P $.

Correct A. Price = $20, Quantity = 40

B. Price = $30, Quantity = 50

C. Price = $40, Quantity = 60

D. Price = $50, Quantity = 70

Correct Answer: A

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Question 11

The government of a country imposes a tax on imports to raise revenue. The tax is levied at a rate of 10% on all imports. If the value of imports is ₦100,000, what is the amount of tax paid?

A. ₦8,000

Correct B. ₦10,000

C. ₦12,000

D. ₦15,000

Correct Answer: B

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Question 12

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. ₦20

B. ₦30

Correct C. ₦40

D. ₦50

Correct Answer: C

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Question 13

A firm has a production function F(Q) = 2Q^2 + 5Q. If the price of the good is ₦10, what is the profit-maximizing quantity?

A. 10

Correct B. 20

C. 30

D. 40

Correct Answer: B

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Question 14

A government budget has the following components: Revenue = ₦100,000, Exp\enditure = ₦120,000, and a deficit of ₦20,000. What is the fiscal policy?

A. Expansionary

Correct B. Contractionary

C. Neutral

D. Fiscal policy is not applicable

Correct Answer: B

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Question 15

A firm faces a demand curve given by Q = 100 - 2P and a supply curve given by Q = 2P. What is the equilibrium price?

A. ₦10

Correct B. ₦20

C. ₦30

D. ₦40

Correct Answer: B

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Question 16

The government of Nigeria plans to increase the tax rate on luxury goods to reduce the budget deficit. Assuming the demand curve for luxury goods is downward sloping and the supply curve is upward sloping, what will be the effect on the equilibrium price and quantity of luxury goods?

Correct A. The equilibrium price will increase, and the equilibrium quantity will decrease.

B. The equilibrium price will decrease, and the equilibrium quantity will increase.

C. The equilibrium price will remain unchanged, and the equilibrium quantity will decrease.

D. The equilibrium price will increase, and the equilibrium quantity will increase.

Correct Answer: A

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Question 17

Agricultural subsidies in Nigeria are designed to increase crop yields and reduce poverty. However, some critics argue that these subsidies distort the market and lead to overproduction. What is the likely effect of agricultural subsidies on the supply curve of crops?

A. The supply curve will shift to the left, reducing the equilibrium quantity.

Correct B. The supply curve will shift to the right, increa\sing the equilibrium quantity.

C. The supply curve will remain unchanged, and the equilibrium quantity will decrease.

D. The supply curve will shift to the left, increa\sing the equilibrium quantity.

Correct Answer: B

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Question 18

The Nigerian government plans to invest in industrialization by providing tax incentives to manufacturers. However, some critics argue that this will lead to a decrease in government revenue. What is the likely effect of tax incentives on the government's revenue?

A. The government's revenue will increase, as manufacturers will pay more taxes.

Correct B. The government's revenue will decrease, as manufacturers will pay fewer taxes.

C. The government's revenue will remain unchanged, as the tax incentives will be offset by increased economic activity.

D. The government's revenue will increase, as manufacturers will invest more in the economy.

Correct Answer: B

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Question 19

A firm in Nigeria is considering increa\sing its production of a product. The firm's \cost function is given by C(q) = 2q^2 + 10q + 5, where q is the quantity produced. What is the marginal \cost function?

Correct A. ( MC(q) = 4q + 10 )

B. ( MC(q) = 2q + 5 )

C. ( MC(q) = 4q^2 + 10q + 5 )

D. ( MC(q) = 2q^2 + 10q )

Correct Answer: A

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Question 20

A consumer in Nigeria is considering purcha\sing a product. The consumer's demand function is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. What is the consumer's willingness to pay?

Correct A. $ P = 50 $

B. $ P = 25 $

C. $ P = 75 $

D. $ P = 100 $

Correct Answer: A

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Question 21

The production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm's budget constraint is 100L + 200K = 10000, find the optimal values of L and K.

A. L = 100, K = 50

Correct B. L = 50, K = 100

C. L = 100, K = 200

D. L = 200, K = 100

Correct Answer: B

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Question 22

A firm is producing a good u\sing two inputs, labor (L) and capital (K). The production function is given by Q = 2L^0.5K^0.5. The price of labor is ₦100 per unit and the price of capital is ₦200 per unit. The firm's budget constraint is 100L + 200K = 10000. Find the optimal values of L and K.

A. L = 100, K = 50

Correct B. L = 50, K = 100

C. L = 100, K = 200

D. L = 200, K = 100

Correct Answer: B

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Question 23

A firm is producing a good u\sing two inputs, labor (L) and capital (K). The production function is given by Q = 2L^0.5K^0.5. The price of labor is ₦100 per unit and the price of capital is ₦200 per unit. The firm's budget constraint is 100L + 200K = 10000. Find the optimal values of L and K.

A. L = 100, K = 50

Correct B. L = 50, K = 100

C. L = 100, K = 200

D. L = 200, K = 100

Correct Answer: B

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Question 24

A firm is producing a good u\sing two inputs, labor (L) and capital (K). The production function is given by Q = 2L^0.5K^0.5. The price of labor is ₦100 per unit and the price of capital is ₦200 per unit. The firm's budget constraint is 100L + 200K = 10000. Find the optimal values of L and K.

A. L = 100, K = 50

Correct B. L = 50, K = 100

C. L = 100, K = 200

D. L = 200, K = 100

Correct Answer: B

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Question 25

A firm is producing a good u\sing two inputs, labor (L) and capital (K). The production function is given by Q = 2L^0.5K^0.5. The price of labor is ₦100 per unit and the price of capital is ₦200 per unit. The firm's budget constraint is 100L + 200K = 10000. Find the optimal values of L and K.

A. L = 100, K = 50

Correct B. L = 50, K = 100

C. L = 100, K = 200

D. L = 200, K = 100

Correct Answer: B

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