Practice Post UTME IGBINEDION UNIVERSITY economics 2018 Past Questions

Question 1

A consumer's indifference curve is a graphical representation of the trade-offs between two goods. What is the shape of the indifference curve when the consumer is willing to give up a certain amount of one good for a certain amount of another good?

A. Convex

Correct B. Concave

C. Linear

D. Quadratic

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 2

A firm is considering investing in a new project. The project has a fixed \cost of ₦1,000,000 and a variable \cost of ₦500 per unit produced. If the selling price of the product is ₦1,200 per unit, what is the break-even point?

A. 1,000 units

Correct B. 5,000 units

C. 10,000 units

D. 20,000 units

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 3

A country's GDP can be calculated u\sing the following formula: GDP = C + I + G + $ X - M $. What does the letter 'C' represent in this formula?

Correct A. Consumption

B. Investment

C. Government Exp\enditure

D. Net Exports

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 4

A firm is producing a good u\sing two inputs, labor and capital. The production function is given by Q = 2L^0.5K^0.5. What is the marginal product of labor?

Correct A. L^$ -0.5 $K^0.5

B. L^0.5K^$ -0.5 $

C. 2L^$ -0.5 $K^0.5

D. 2L^0.5K^$ -0.5 $

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 5

A consumer's budget constraint is given by the equation 2X + 3Y = 12. If the consumer's income is ₦12, what is the maximum amount of good Y that the consumer can buy?

A. ₦4

Correct B. ₦6

C. ₦8

D. ₦10

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 6

A consumer's indifference curve is downward sloping and convex to the origin. What is the implication of this shape on the consumer's marginal rate of substitution (MRS)?

A. The MRS is cons\tant along the indifference curve.

Correct B. The MRS decreases as the consumer moves along the indifference curve.

C. The MRS increases as the consumer moves along the indifference curve.

D. The MRS is zero at the point of \tangency with the budget constraint.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 7

A perfectly competitive market has a downward-sloping demand curve and a horizontal supply curve. What is the equilibrium price and quantity in this market?

Correct A. Price = $10, Quantity = 100

B. Price = $5, Quantity = 50

C. Price = $20, Quantity = 200

D. Price = $15, Quantity = 150

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 8

A country's GDP is $100 billion, its imports are $20 billion, and its exports are $15 billion. What is the country's balance of trade?

Correct A. Trade deficit of $5 billion

B. Trade surplus of $5 billion

C. Trade deficit of $10 billion

D. Trade surplus of $10 billion

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 9

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

A. Q = 12

B. Q = 18

Correct C. Q = 24

D. Q = 36

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 10

A consumer's budget constraint is given by P1Q1 + P2Q2 = 100. If the prices of goods 1 and 2 are $5 and $10, respectively, and the consumer sp\ends $50 on good 1, what is the consumer's optimal quantity of good 2?

A. Q2 = 5

Correct B. Q2 = 10

C. Q2 = 15

D. Q2 = 20

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 11

A firm is considering two alternative production processes. Process A has a fixed \cost of ₦100,000 and a variable \cost of ₦50 per unit. Process B has a fixed \cost of ₦150,000 and a variable \cost of ₦30 per unit. If the selling price of the product is ₦80 per unit, determine the break-even point for each process.

A. 10,000 units

Correct B. 20,000 units

C. 30,000 units

D. 40,000 units

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 12

A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's income is ₦1,000 and the prices of x and y are ₦50 and ₦30 respectively, determine the optimal bundle of x and y.

Correct A. x = 10, y = 20

B. x = 20, y = 10

C. x = 15, y = 15

D. x = 25, y = 5

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 13

A monopolist faces a demand curve given by Q = 100 - 2P. The firm's marginal \cost is given by MC = 10 + 2Q. Determine the profit-maximizing price and quantity.

A. P = ₦40, Q = 30

Correct B. P = ₦50, Q = 25

C. P = ₦60, Q = 20

D. P = ₦70, Q = 15

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 14

A firm's total revenue is given by TR = 100P^2 - 200P + 100. Determine the price that maximizes total revenue.

A. P = ₦20

Correct B. P = ₦30

C. P = ₦40

D. P = ₦50

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 15

A consumer's demand function is given by Q = 100 - 2P. Determine the consumer's surplus at a price of ₦50.

A. ₦1,000

Correct B. ₦2,000

C. ₦3,000

D. ₦4,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 16

A consumer's utility function is given by U(x, y) = 2x^0.5y^0.5. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of x and y?

A. x = 10, y = 10

B. x = 20, y = 5

C. x = 5, y = 20

Correct D. x = 15, y = 15

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 17

The demand and supply curves for a particular good are given by D(p) = 100 - 2p and S(p) = 50 + p respectively. What is the equilibrium price and quantity of the good?

Correct A. p = 25, q = 75

B. p = 50, q = 100

C. p = 75, q = 125

D. p = 100, q = 150

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 18

A country's balance of payments account is given by the following table:\n\n| Item | 2018 | 2019 |\n| --- | --- | --- |\n| Exports | ₦1000 | ₦1200 |\n| Imports | ₦1500 | ₦1800 |\n| Net Factor Income | ₦200 | ₦250 |\n| Net Transfer | ₦100 | ₦150 |\n\nWhat is the country's balance of payments deficit/surplus in 2019?

A. ₦200

Correct B. ₦300

C. ₦400

D. ₦500

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 19

A monopolist faces a demand curve given by D(p) = 100 - p. The monopolist's marginal \cost curve is given by MC(q) = 10 + 2q. What is the monopolist's profit-maximizing price and quantity?

A. p = 50, q = 25

Correct B. p = 75, q = 37.5

C. p = 100, q = 50

D. p = 125, q = 62.5

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 20

A country's GDP is given by the following table:\n\n| Year | 2018 | 2019 |\n| --- | --- | --- |\n| Consumption | ₦1000 | ₦1200 |\n| Investment | ₦500 | ₦600 |\n| Government Exp\enditure | ₦200 | ₦250 |\n| Net Exports | ₦100 | ₦150 |\n\nWhat is the country's GDP growth rate from 2018 to 2019?

A. 10%

Correct B. 15%

C. 20%

D. 25%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 21

A firm's production function is given by Q = 2L^$ 1/2 $K^$ 1/2 $, where Q is the quantity produced, L is labor and K is capital. 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 = 200, K = 50

D. L = 50, K = 200

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 22

A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are ₦5 and ₦10 respectively, and the consumer's budget is ₦50, find the optimal quantities of x and y.

Correct A. x = 5, y = 2

B. x = 2, y = 5

C. x = 10, y = 0

D. x = 0, y = 10

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 23

A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal revenue function is MR = 200 - 2Q, find the optimal price and quantity.

Correct A. P = 50, Q = 25

B. P = 25, Q = 50

C. P = 75, Q = 12.5

D. P = 12.5, Q = 75

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 24

A consumer's budget constraint is given by 2x + 3y = 12, where x and y are the quantities of two goods consumed. If the consumer's utility function is U = 2x + y, find the optimal quantities of x and y.

Correct A. x = 4, y = 2

B. x = 2, y = 4

C. x = 6, y = 0

D. x = 0, y = 6

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 25

A firm's production function is given by Q = 2L^$ 1/2 $K^$ 1/2 $, where Q is the quantity produced, L is labor and K is capital. 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 = 200, K = 50

D. L = 50, K = 200

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

POST UTME IGBINEDION UNIVERSITY 2018 Economics | Objective

Master the Exam!

Help others prepare! Share this practice hub: