Practice Post UTME IGBINEDION UNIVERSITY economics 2023 Past Questions

Question 1

A firm's revenue function is given by R(x) = 2x^2 + 5x + 1, where x is the number of units produced. If the firm's \cost function is C(x) = 3x^2 + 2x + 10, find the profit-maximizing level of production.

A. $ x = 1 $

Correct B. $ x = 2 $

C. $ x = 3 $

D. $ x = 4 $

Correct Answer: B

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Question 2

A country's GDP is ₦100 billion, its GNP is ₦120 billion, and its net factor income from abroad is ₦10 billion. What is the country's net national income?

Correct A. ₦110 billion

B. ₦120 billion

C. ₦130 billion

D. ₦140 billion

Correct Answer: A

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Question 3

A consumer has a budget constraint of ₦100, and the prices of two goods are ₦20 and ₦30, respectively. If the consumer's indifference curve is \tangent to the budget line at the point where the consumer is consuming 2 units of the first good and 1 unit of the second good, what is the opportunity \cost of the first good in terms of the second good?

Correct A. $ \frac{1}{2} $

B. ( 1 )

C. ( 2 )

D. ( 3 )

Correct Answer: A

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Question 4

A country's trade balance is in deficit by ₦50 billion, and its current account deficit is ₦20 billion. What is the country's capital account surplus?

A. ₦30 billion

B. ₦40 billion

Correct C. ₦50 billion

D. ₦60 billion

Correct Answer: C

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Question 5

A firm's supply function is given by Q = 2P + 5, where P is the price of the good. If the firm's revenue function is R(P) = 3P^2 + 2P + 1, find the price at which the firm's marginal revenue equals its marginal \cost.

A. $ P = 1 $

Correct B. $ P = 2 $

C. $ P = 3 $

D. $ P = 4 $

Correct Answer: B

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Question 6

A country's money supply increases by 10% due to an expansionary monetary policy. If the velocity of money is 2.5, and the initial money supply is ₦100 billion, what is the new money supply?

A. ₦110 billion

B. ₦105 billion

Correct C. ₦120 billion

D. ₦125 billion

Correct Answer: C

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Question 7

A firm's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If labor increases by 20% and capital remains cons\tant, by what percentage does output increase?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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Question 8

A consumer's budget constraint is given by P1Q1 + P2Q2 = I, where P1 and P2 are prices, Q1 and Q2 are quantities, and I is income. If the consumer's income increases by 15% and the prices of both goods remain cons\tant, by what percentage does the consumer's budget increase?

A. 10%

Correct B. 15%

C. 20%

D. 25%

Correct Answer: B

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Question 9

A country's balance of payments is given by BOP = X - M, where BOP is the balance of payments, X is exports, and M is imports. If exports increase by 20% and imports remain cons\tant, by what percentage does the balance of payments increase?

A. 10%

B. 15%

Correct C. 20%

D. 25%

Correct Answer: C

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Question 10

A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's revenue function is given by R = PQ, what is the firm's marginal revenue function?

Correct A. $ MR = -2P $

B. $ MR = 2P $

C. $ MR = P^2 $

D. $ MR = -P^2 $

Correct Answer: A

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Question 11

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.

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

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

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

Correct Answer: C

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Question 12

A firm is operating in a perfectly competitive market. If the firm's average \cost (AC) curve intersects the demand curve at a point where the quantity supplied is 100 units, what is the implication for the firm's profit-maximizing output?

A. The firm will produce 100 units of output.

Correct B. The firm will produce less than 100 units of output.

C. The firm will produce more than 100 units of output.

D. The firm will produce at the point where MC = MR.

Correct Answer: B

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Question 13

A consumer is faced with the following budget constraint: 2x + 3y = 12. If the consumer's indifference curve is downward sloping and convex to the origin, what is the implication for the consumer's marginal rate of substitution (MRS)?

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

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

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

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

Correct Answer: C

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Question 14

A firm is operating in a perfectly competitive market. If the firm's average \cost (AC) curve intersects the demand curve at a point where the quantity supplied is 100 units, what is the implication for the firm's profit-maximizing output?

A. The firm will produce 100 units of output.

Correct B. The firm will produce less than 100 units of output.

C. The firm will produce more than 100 units of output.

D. The firm will produce at the point where MC = MR.

Correct Answer: B

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Question 15

A consumer is faced with the following budget constraint: 2x + 3y = 12. If the consumer's indifference curve is downward sloping and convex to the origin, what is the implication for the consumer's marginal rate of substitution (MRS)?

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

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

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

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

Correct Answer: C

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Question 16

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input levels are L = 16 and K = 9, what is the marginal product of labor (MPL) at these input levels?

Correct A. 1.5

B. 2.5

C. 3.5

D. 4.5

Correct Answer: A

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Question 17

A consumer's utility function is given by U = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12, and the price of good x is $2, what is the consumer's optimal bundle of goods?

A. x = 3, y = 2

Correct B. x = 2, y = 3

C. x = 4, y = 1

D. x = 1, y = 4

Correct Answer: B

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Question 18

A central bank increases the reserve requirement for commercial banks. What is the likely effect on the money supply?

A. Increase

Correct B. Decrease

C. No change

D. Uncertain

Correct Answer: B

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Question 19

A government imposes a tax on a particular good. What is the likely effect on the equilibrium price and quantity of the good?

Correct A. Price increases, quantity decreases

B. Price decreases, quantity increases

C. Price increases, quantity increases

D. Price decreases, quantity decreases

Correct Answer: A

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Question 20

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input levels are L = 16 and K = 9, what is the total product of labor (TPL) at these input levels?

A. 32

B. 64

Correct C. 128

D. 256

Correct Answer: C

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Question 21

Consider a pure public good with a demand curve given by Q = 100 - P, where Q is the quantity demanded and P is the price. If the government decides to provide this public good at a price of ₦100, what will be the quantity demanded?

A. 50

B. 75

Correct C. 100

D. 125

Correct Answer: C

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Question 22

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

A. P = ₦50, Q = 25

B. P = ₦75, Q = 50

Correct C. P = ₦100, Q = 75

D. P = ₦125, Q = 100

Correct Answer: C

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Question 23

Consider a firm with a production function given by Q = 2L + 3K, where Q is the output, L is the labor, and K is the capital. If the wage rate is ₦50 per hour and the rental rate of capital is ₦100 per hour, what is the profit-maximizing level of labor?

A. 10

Correct B. 20

C. 30

D. 40

Correct Answer: B

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Question 24

A country has a trade deficit of ₦100 billion and a GDP of ₦500 billion. What is the trade deficit as a percentage of GDP?

A. 10%

Correct B. 15%

C. 20%

D. 25%

Correct Answer: B

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Question 25

Consider a firm with a demand curve given by Q = 100 - P and a marginal revenue curve given by MR = 2P. What is the profit-maximizing price?

A. ₦50

B. ₦75

Correct C. ₦100

D. ₦125

Correct Answer: C

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