Practice Post UTME LASU economics 2019 Past Questions

Question 1

The demand for a commodity is said to be elastic if the percentage change in the quantity demanded is greater than the percentage change in the price. U\sing the concept of elasticity of demand, explain why the demand for a commodity is said to be elastic.

A. The demand for a commodity is said to be elastic if the percentage change in the quantity demanded is greater than the percentage change in the price.

B. The demand for a commodity is said to be elastic if the percentage change in the quantity demanded is less than the percentage change in the price.

C. The demand for a commodity is said to be elastic if the percentage change in the quantity demanded is equal to the percentage change in the price.

D. The demand for a commodity is said to be elastic if the percentage change in the quantity demanded is less than the percentage change in the price, but the price is not affected by the change in quantity demanded.

Question 2

A country's inflation rate is 5% per annum, and its nominal interest rate is 6% per annum. If the real interest rate is 2% per annum, what is the expected rate of inflation?

A. 4%

B. 5%

C. 6%

D. 7%

Question 3

Consider a firm operating in a perfectly competitive market. If the firm's marginal revenue (MR) curve intersects its marginal \cost (MC) curve at point E, where MR = MC, and the firm is producing at a level of output where the average revenue (AR) curve is above the average \cost (AC) curve, what can be concluded about the firm's profit-maximizing output?

A. The firm is producing at a level of output where the average revenue (AR) curve is below the average \cost (AC) curve.

B. The firm is producing at a level of output where the average revenue (AR) curve is above the average \cost (AC) curve.

C. The firm is producing at a level of output where the average revenue (AR) curve is equal to the average \cost (AC) curve.

D. The firm is producing at a level of output where the average revenue (AR) curve is below the average \cost (AC) curve.

Question 4

A firm's total revenue (TR) is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm's total \cost (TC) is given by the equation TC = 50x + 100, what is the firm's profit-maximizing output?

A. 20 units

B. 30 units

C. 40 units

D. 50 units

Question 5

A firm's demand curve is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the firm's supply curve is given by the equation Qs = 2P - 10, what is the equilibrium price?

A. ₦20

B. ₦30

C. ₦40

D. ₦50

Question 6

The government of Nigeria collects taxes from its citizens to fund public goods and services. Explain the concept of taxation and its impor\tance in the economy.

A. The government of Nigeria collects taxes from its citizens to fund public goods and services.

B. The government of Nigeria collects taxes from its citizens to fund private goods and services.

C. The government of Nigeria does not collect taxes from its citizens to fund public goods and services.

D. The government of Nigeria collects taxes from its citizens to fund public goods and services, but the taxes are not used to fund public goods and services.

Question 7

A firm's production function is given by Q = 2K^\( 1/2 \)L^\( 1/2 \). If the firm's labor increases by 25% while keeping capital cons\tant, what is the percentage change in output?

A. 25%

B. 12.5%

C. 50%

D. -12.5%

Question 8

A monopolist faces a demand curve given by Qd = 100 - 2P and a marginal revenue function MR = 200 - 4Q. If the firm produces 20 units, what is the price?

A. 30

B. 40

C. 50

D. 60

Question 9

The balance of payments (BOP) is a statistical statement that summarizes a country's economic transactions with the rest of the world over a specific period of time. Explain the concept of BOP and its impor\tance in the economy.

A. The balance of payments (BOP) is a statistical statement that summarizes a country's economic transactions with the rest of the world over a specific period of time.

B. The balance of payments (BOP) is a statistical statement that summarizes a country's economic transactions with the rest of the world over a specific period of time, excluding the value of imports and exports.

C. The balance of payments (BOP) is a statistical statement that summarizes a country's economic transactions with the rest of the world over a specific period of time, including the value of imports and exports.

D. The balance of payments (BOP) is a statistical statement that summarizes a country's economic transactions with the rest of the world over a specific period of time, excluding the value of imports and exports, and including the value of intermediate goods and services.

Question 10

The agricultural sector is a major contributor to the GDP of Nigeria. Discuss the impact of agricultural industrialization on the GDP of Nigeria.

A. The agricultural sector is a major contributor to the GDP of Nigeria. Agricultural industrialization has a positive impact on the GDP of Nigeria.

B. The agricultural sector is a major contributor to the GDP of Nigeria. Agricultural industrialization has a negative impact on the GDP of Nigeria.

C. The agricultural sector is not a major contributor to the GDP of Nigeria. Agricultural industrialization has a positive impact on the GDP of Nigeria.

D. The agricultural sector is not a major contributor to the GDP of Nigeria. Agricultural industrialization has a negative impact on the GDP of Nigeria.

Question 11

A firm's production function is given by Q = 2K^\( 1/2 \)L^\( 1/2 \). If the firm's capital stock increases by 25% while keeping labor cons\tant, what is the new output?

A. 20

B. 25

C. 30

D. 35

Question 12

The demand for a product is given by Qd = 100 - 2P and the supply is given by Qs = 2P. If the price is initially at 20, what is the new equilibrium price?

A. 10

B. 20

C. 30

D. 40

Question 13

The National Bureau of Statistics (NBS) releases the Gross Domestic Product (GDP) of Nigeria on a quarterly basis. Explain the concept of GDP and its impor\tance in the economy.

A. The Gross Domestic Product (GDP) is the total value of all final goods and services produced within a country's borders over a specific time period.

B. The Gross Domestic Product (GDP) is the total value of all intermediate goods and services produced within a country's borders over a specific time period.

C. The Gross Domestic Product (GDP) is the total value of all final goods and services produced within a country's borders over a specific time period, excluding the value of intermediate goods and services.

D. The Gross Domestic Product (GDP) is the total value of all intermediate goods and services produced within a country's borders over a specific time period, excluding the value of final goods and services.

Question 14

A firm's production function is given by Q = 2K^\( 1/2 \)L^\( 1/2 \). If the firm's capital stock increases by 25% while keeping labor cons\tant, what is the percentage change in output?

A. 25%

B. 12.5%

C. 50%

D. -12.5%

Question 15

A firm is considering two different production techno\logies: a traditional techno\logy and a modern techno\logy. The traditional techno\logy has a fixed \cost of ₦100,000 and a variable \cost of ₦50 per unit. The modern techno\logy has a fixed \cost of ₦200,000 and a variable \cost of ₦30 per unit. If the firm produces 1,000 units, what is the total \cost of each techno\logy?

A. Traditional techno\logy: ₦250,000; Modern techno\logy: ₦220,000

B. Traditional techno\logy: ₦220,000; Modern techno\logy: ₦250,000

C. Traditional techno\logy: ₦200,000; Modern techno\logy: ₦220,000

D. Traditional techno\logy: ₦220,000; Modern techno\logy: ₦200,000

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