Practice Post UTME GREENFIELD UNIVERSITY economics 2017 Past Questions

Question 1

A monopolist faces a demand curve given by Qd = 100 - 2P and a marginal revenue curve given by MR = 20 - 2P. If the price elasticity of demand is -2, what is the profit-maximizing price?

A. ₦50

B. ₦60

C. ₦70

D. ₦80

Question 2

The agricultural sector in Nigeria is characterized by low productivity and limited access to credit. Which of the following policies would most likely increase agricultural productivity?

A. Providing subsidies to farmers

B. Increa\sing the minimum wage for agricultural workers

C. Implementing a policy of crop rotation

D. Establishing a national agricultural research institute

Question 3

A firm's \cost function is given by C = 2L + 3K, where C is the \cost, L is the labor, and K is the capital. If the firm wants to minimize its \cost, what is the optimal level of labor and capital?

A. L = 1, K = 1

B. L = 2, K = 2

C. L = 3, K = 3

D. L = 4, K = 4

Question 4

The opportunity \cost of producing one more unit of wheat is the amount of wheat that could have been produced by diverting resources from the production of another good. If the opportunity \cost of producing one more unit of wheat is 2 units of rice, and the price of wheat is ₦50 per unit, and the price of rice is ₦30 per unit, what is the opportunity \cost in terms of rice if the price of wheat increases to ₦60 per unit?

A. 4 units of rice

B. 6 units of rice

C. 8 units of rice

D. 10 units of rice

Question 5

A country's balance of payments (BOP) accounts can be affected by the following factors. Which of the following is NOT a factor that affects the BOP?

A. Changes in the exchange rate

B. Changes in the terms of trade

C. Changes in the country's income

D. Changes in the country's population

Question 6

A firm is producing 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^0.2K^0.8. If the firm is currently u\sing 100 units of labor and 200 units of capital, and the price of good X is ₦100 per unit, and the price of good Y is ₦200 per unit, what is the total revenue of the firm?

A. ₦60,000

B. ₦80,000

C. ₦100,000

D. ₦120,000

Question 7

Consider a perfectly competitive market with multiple firms producing a homogeneous product. If the market price falls below the average total \cost of production, what will be the likely outcome for the firms in the market?

A. The firms will increase production to take advantage of the lower market price.

B. The firms will decrease production to reduce their losses.

C. The firms will exit the market to avoid incurring losses.

D. The firms will increase their prices to match the market price.

Question 8

A firm produces a good u\sing a production function given by Q = 10L^0.5K^0.5, where Q is the quantity produced, L is the amount of labor used, and K is the amount of capital used. If the price of the good is ₦100 and the firm's budget constraint is given by 100Q = ₦1000, what is the optimal quantity of labor to use?

A. 10 units

B. 20 units

C. 30 units

D. 40 units

Question 9

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to increase its output by 20%, what percentage increase in labor and capital is required?

A. 10% increase in labor and 10% increase in capital

B. 20% increase in labor and 20% increase in capital

C. 30% increase in labor and 30% increase in capital

D. 40% increase in labor and 40% increase in capital

Question 10

A country is experiencing a recession, and the government wants to implement a fiscal policy to stimulate economic growth. Which of the following fiscal policy tools would be most effective in increa\sing aggregate demand?

A. Increa\sing government sp\ending on infrastructure projects

B. Reducing taxes to increase disposable income

C. Increa\sing government borrowing to finance public sector investment

D. Implementing a monetary policy to reduce interest rates

Question 11

A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production function for good X is given by $ Q_X = 2L^{0.5}K^{0.5} $. If the firm has 100 units of labor and 200 units of capital, how many units of good X will it produce?

A. 100

B. 200

C. 50

D. 150

Question 12

A firm produces two goods, X and Y, u\sing two inputs, labor and capital. The production function for good X is given by QX = 10L^0.5K^0.5, where QX is the quantity of good X produced, L is the amount of labor used, and K is the amount of capital used. If the price of good X is ₦100 and the price of good Y is ₦200, and the firm's budget constraint is given by 100QX + 200QY = ₦1000, what is the optimal quantity of good X to produce?

A. 10 units

B. 20 units

C. 30 units

D. 40 units

Question 13

A country's supply curve for a particular good is given by Q = 2P + 10, where Q is the quantity supplied and P is the price. If the price of the good is $5, what is the quantity supplied?

A. 10 units

B. 15 units

C. 20 units

D. 25 units

Question 14

A consumer has an income of ₦10,000 and faces the following prices: $ P_X = 5 $, $ P_Y = 10 $. If the consumer's budget constraint is given by $ 5X + 10Y = 10,000 $, and the consumer's indifference curve is given by $ U = 2X + 3Y $, what is the consumer's optimal consumption bundle?

A. $ X = 1000, Y = 500 $

B. $ X = 500, Y = 1000 $

C. $ X = 2000, Y = 2000 $

D. $ X = 0, Y = 1000 $

Question 15

A consumer has an income of ₦10,000 and faces the following prices: $ P_X = 5 $, $ P_Y = 10 $. If the consumer's budget constraint is given by $ 5X + 10Y = 10,000 $, and the consumer's indifference curve is given by $ U = 2X + 3Y $, what is the consumer's optimal consumption bundle?

A. $ X = 1000, Y = 500 $

B. $ X = 500, Y = 1000 $

C. $ X = 2000, Y = 2000 $

D. $ X = 0, Y = 1000 $

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