Practice Post UTME JOSEPH AYO BABALOLA UNIVERSITY economics 2021 Past Questions

Question 1

The government of Nigeria has introduced a new policy to increase agricultural production. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing access to credit. However, the policy also includes a provision to increase the price of fertilizers. Which of the following is a likely consequence of this policy?

A. An increase in agricultural production

Correct B. A decrease in agricultural production

C. No change in agricultural production

D. An increase in the price of agricultural products

Correct Answer: B

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

Question 2

A firm is considering the introduction of a new product. The firm's production \costs are ₦100,000 and the selling price of the product is ₦150,000. If the firm produces 100 units of the product, what is the total revenue?

Correct A. ₦15,000,000

B. ₦12,000,000

C. ₦10,000,000

D. ₦8,000,000

Correct Answer: A

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

Question 3

The Nigerian government has introduced a new tax policy to increase revenue. The policy includes a 10% increase in the value-added tax (VAT) rate. Which of the following is a likely consequence of this policy?

Correct A. An increase in the price of goods and services

B. A decrease in the price of goods and services

C. No change in the price of goods and services

D. An increase in the revenue of the government

Correct Answer: A

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

Question 4

A firm is considering the introduction of a new product. The firm's production \costs are ₦100,000 and the selling price of the product is ₦150,000. If the firm produces 100 units of the product, what is the profit?

Correct A. ₦5,000,000

B. ₦4,000,000

C. ₦3,000,000

D. ₦2,000,000

Correct Answer: A

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

Question 5

The Nigerian government has introduced a new policy to increase agricultural production. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing access to credit. However, the policy also includes a provision to increase the price of fertilizers. Which of the following is a likely consequence of this policy?

A. An increase in agricultural production

Correct B. A decrease in agricultural production

C. No change in agricultural production

D. An increase in the price of agricultural products

Correct Answer: B

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

Question 6

A country's GDP is ₦10 trillion, while its GNP is ₦12 trillion. What is the net factor income from abroad?

Correct A. ₦2 trillion

B. ₦1 trillion

C. ₦3 trillion

D. ₦4 trillion

Correct Answer: A

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

Question 7

A firm's \cost function is given by C(x) = 2x^2 + 100x. If the firm produces 50 units, what is the total \cost?

A. ₦15,000

B. ₦20,000

Correct C. ₦25,000

D. ₦30,000

Correct Answer: C

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

Question 8

A country's balance of payments is given by the following table. What is the current account balance?

A. ₦1 trillion

Correct B. ₦2 trillion

C. ₦3 trillion

D. ₦4 trillion

Correct Answer: B

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

Question 9

A firm's revenue function is given by R(x) = 100x - 2x^2. If the firm produces 20 units, what is the marginal revenue?

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 10

A country's national income is given by the following table. What is the GDP per capita?

A. ₦50,000

B. ₦60,000

Correct C. ₦70,000

D. ₦80,000

Correct Answer: C

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

Question 11

Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, and the firm's current output price is p = 50, what is the firm's current profit-maximizing level of output?

A. 10

Correct B. 20

C. 30

D. 40

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 budget constraint is 10x + 5y = 50, and the consumer's initial \endowment is (x,y) = (2,5), what is the consumer's optimal consumption bundle?

Correct A. (5,10)

B. (10,5)

C. (15,0)

D. (0,15)

Correct Answer: A

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

Question 13

A firm's \cost function is given by C(Q) = 2Q^2 + 5Q + 10. If the firm's revenue function is given by R(Q) = 10Q^2 - 5Q + 20, what is the firm's profit-maximizing level of output?

A. 5

Correct B. 10

C. 15

D. 20

Correct Answer: B

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

Question 14

A consumer's indifference curve is given by the equation 2x + 3y = 15. If the consumer's budget constraint is given by the equation 5x + 2y = 20, what is the consumer's optimal consumption bundle?

Correct A. (3,2)

B. (2,3)

C. (1,4)

D. (4,1)

Correct Answer: A

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

Question 15

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, and the firm's current output price is p = 50, what is the firm's current profit-maximizing level of input?

A. 10

Correct B. 20

C. 30

D. 40

Correct Answer: B

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

Question 16

A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦200 per unit, calculate the total \cost of producing 4 units of output.

A. ₦800

B. ₦1000

Correct C. ₦1200

D. ₦1600

Correct Answer: C

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

Question 17

A consumer's utility function is given by U = 2x + 3y. If the price of x is ₦50 per unit and the price of y is ₦75 per unit, calculate the consumer's budget constraint.

A. x + 1.5y = 15

B. x + 2y = 20

Correct C. 2x + 3y = 30

D. 3x + 4y = 40

Correct Answer: C

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

Question 18

A firm's demand function is given by Q = 100 - 2P. If the price elasticity of demand is 0.5, calculate the firm's revenue.

A. ₦5000

B. ₦6000

Correct C. ₦7000

D. ₦8000

Correct Answer: C

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

Question 19

A consumer's indifference curve is given by U = 2x + 3y. If the consumer's budget constraint is x + 2y = 20, calculate the consumer's optimal consumption bundle.

Correct A. x = 10, y = 5

B. x = 8, y = 6

C. x = 6, y = 8

D. x = 4, y = 10

Correct Answer: A

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

Question 20

A firm's supply function is given by Q = 2P + 10. If the price elasticity of supply is 0.5, calculate the firm's revenue.

A. ₦5000

B. ₦6000

Correct C. ₦7000

D. ₦8000

Correct Answer: C

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

Question 21

A firm operating in a perfectly competitive market is characterized by which of the following?

A. A \single price setter

Correct B. Many buyers and sellers

C. A price ceiling

D. A price floor

Correct Answer: B

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

Question 22

The opportunity \cost of producing one more unit of a good is the

A. marginal benefit

Correct B. marginal \cost

C. average \cost

D. average revenue

Correct Answer: B

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

Question 23

The law of diminishing marginal utility states that as the quantity of a good consumed increases, the marginal utility derived from each additional unit

A. increases

Correct B. decreases

C. remains cons\tant

D. becomes negative

Correct Answer: B

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

Question 24

A country's balance of payments is in equilibrium when the value of its exports equals the value of its

Correct A. imports

B. exports

C. capital inflows

D. capital outflows

Correct Answer: A

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

Question 25

The elasticity of demand is measured by the percentage change in the quantity demanded of a good in response to a 1% change in the price of the good. If the demand for a good is elastic, a 1% increase in the price of the good will result in a

A. less than 1% decrease in the quantity demanded

Correct B. greater than 1% decrease in the quantity demanded

C. 1% decrease in the quantity demanded

D. no change in the quantity demanded

Correct Answer: B

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

POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2021 Economics | Objective

Master the Exam!

Help others prepare! Share this practice hub: