Practice Post UTME IMS U economics 2022 Past Questions

Question 1

A firm has a production function Q = 2L^2 + 3K^2, where L is labor and K is capital. If the firm's \cost of labor is ₦10 per unit and the \cost of capital is ₦20 per unit, what is the firm's optimal level of labor and capital?

A. (10,5)

B. (5,10)

C. (15,3)

D. (20,2)

Question 2

A country's economy is experiencing a recession. U\sing the concept of opportunity \cost, explain why the government may choose to implement expansionary fiscal policy to stimulate economic growth.

A. The government may choose to implement expansionary fiscal policy because it would lead to an increase in aggregate demand, which would stimulate economic growth.

B. The government may choose to implement contractionary fiscal policy because it would lead to a decrease in aggregate demand, which would reduce the opportunity \cost of stimulating economic growth.

C. The government may choose to implement expansionary monetary policy because it would lead to an increase in aggregate demand, which would stimulate economic growth.

D. The government may choose to implement contractionary monetary policy because it would lead to a decrease in aggregate demand, which would reduce the opportunity \cost of stimulating economic growth.

Question 3

Consider a production function with cons\tant returns to scale. If the output increases by 20% due to a 20% increase in labor, what is the value of the labor's marginal product?

A. 10%

B. 20%

C. 30%

D. 40%

Question 4

A country's GDP is ₦1,500 billion, and its GNP is ₦1,600 billion. Calculate the net factor income from abroad (NFIA) and the net foreign investment (NFI).

A. \( NFIA = GNP - GDP = 1,600 - 1,500 = 100 \)

B. \( NFIA = GNP - GDP = 1,500 - 1,600 = -100 \)

C. \( NFI = NFIA + \( GDP - GNP \ \) = 100 + \( 1,500 - 1,600 \) = -100 )

D. \( NFI = NFIA + \( GDP - GNP \ \) = 100 + \( 1,600 - 1,500 \) = 100 )

Question 5

A country's government is considering a tax on imports. If the tax rate is 10% and the price of imports is ₦100, what is the amount of tax revenue collected?

A. ₦10

B. ₦20

C. ₦30

D. ₦40

Question 6

A central bank has a monetary policy rule: i = 2 + 0.5\( P - 2 \). If the inflation rate is 3, what is the nominal interest rate?

A. 4

B. 5

C. 6

D. 7

Question 7

A firm's \cost function is given by C = 2L + 3K. If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, calculate the total \cost (TC) and the marginal \cost (MC) when L = 4 and K = 2.

A. \( TC = 2\( 4 \ \)(50) + 3(2)(100) = 400 + 600 = 1,000 )

B. \( TC = 2\( 4 \ \)(50) - 3(2)(100) = 400 - 600 = -200 )

C. \( MC = \frac{dC}{dL} = 2\( 50 \ \) + 3(0) = 100 )

D. \( MC = \frac{dC}{dL} = 2\( 0 \ \) + 3(100) = 300 )

Question 8

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

A. ₦20 billion

B. ₦30 billion

C. ₦40 billion

D. ₦50 billion

Question 9

A government is considering a policy to reduce the country's carbon footprint. U\sing the concept of scarcity, explain why the government may face a trade-off between reducing carbon emissions and maintaining economic growth.

A. The government may face a trade-off between reducing carbon emissions and maintaining economic growth because reducing carbon emissions requires a reduction in the use of fossil fuels, which are a key input in many industries.

B. The government may face a trade-off between reducing carbon emissions and maintaining economic growth because reducing carbon emissions requires a reduction in the production of goods and services, which would lead to a decrease in economic output.

C. The government may face a trade-off between reducing carbon emissions and maintaining economic growth because reducing carbon emissions requires a reduction in the use of energy, which would lead to a decrease in economic output.

D. The government may face a trade-off between reducing carbon emissions and maintaining economic growth because reducing carbon emissions requires a reduction in the use of resources, which would lead to a decrease in economic output.

Question 10

A consumer's demand for a good is given by Q = 100 - 2P. If the consumer's income is ₦1000 and the price of the good is ₦20, what is the consumer's willingness to pay?

A. ₦40

B. ₦50

C. ₦60

D. ₦70

Question 11

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 increases its labor from 100 units to 121 units and its capital from 100 units to 121 units, what is the percentage change in \cost?

A. 10%

B. 20%

C. 30%

D. 40%

Question 12

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 = 20, y = 10

B. x = 15, y = 15

C. x = 10, y = 20

D. x = 5, y = 25

Question 13

A monopolist has a demand function Q = 100 - 2P and a marginal revenue function MR = 200 - 2P. What is the monopolist's optimal price and quantity?

A. (₦50, 75)

B. (₦75, 50)

C. (₦100, 25)

D. (₦25, 100)

Question 14

A firm's production function is given by Q = 3L^(2)K^\( 1/2 \). If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, calculate the total revenue (TR) and the marginal revenue product of labor (MRPL) when L = 4 and K = 2.

A. \( TR = 3\( 4 \ \)^2(2)^{1/2}(50) + 3(4)^2(2)^{1/2}(100) )

B. \( TR = 3\( 4 \ \)^2(2)^{1/2}(50) - 3(4)^2(2)^{1/2}(100) )

C. \( MRPL = \frac{dTR}{dL} = 6\( 4 \ \)^2(2)^{1/2}(50) + 6(4)^2(2)^{1/2}(100) )

D. \( MRPL = \frac{dTR}{dL} = 6\( 4 \ \)^2(2)^{1/2}(50) - 6(4)^2(2)^{1/2}(100) )

Question 15

A firm has a production function: 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. 8

B. 12

C. 16

D. 20

POST UTME IMS U 2022 Economics | Objective

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