Practice Post UTME LASU economics 2022 Past Questions

Question 1

A firm's demand for raw materials is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the price of the raw material increases by 20%, what is the new quantity demanded?

Correct A. 80

B. 60

C. 40

D. 20

Correct Answer: A

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Question 2

A government imposes a tax on a firm's output. The firm's supply function is given by Q = 2P - 10. If the tax increases the firm's \cost by 30%, what is the new supply function?

A. Q = 2P - 20

Correct B. Q = 2P - 15

C. Q = 2P - 30

D. Q = 2P - 25

Correct Answer: B

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Question 3

A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP increases by 15% and the consumption increases by 20%, what is the percentage increase in the investment?

A. 10%

Correct B. 15%

C. 20%

D. 25%

Correct Answer: B

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Question 4

A firm's production function is given by the equation Q = 2L^2 + 3K, where Q is the output, L is labor, and K is capital. If the firm increases the labor by 20% and the capital by 15%, what is the new output?

A. 120

B. 150

Correct C. 180

D. 200

Correct Answer: C

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Question 5

A country's GNP is given by the equation GNP = GDP + (net factor income from abroad). If the country's GDP is 100 billion and the net factor income from abroad is 20 billion, what is the country's GNP?

Correct A. 120 billion

B. 100 billion

C. 80 billion

D. 60 billion

Correct Answer: A

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Question 6

A firm's \cost function is given by ( C(q) = 2q^2 + 5q + 10 ). If the firm's revenue function is ( R(q) = 3q^2 - 2q + 15 ), what is the profit-maximizing quantity of output?

A. 5

Correct B. 10

C. 15

D. 20

Correct Answer: B

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Question 7

A government imposes a tax on a firm's output. The firm's supply curve shifts from \( S_0 \) to \( S_1 \). What is the effect of the tax on the equilibrium price and quantity?

Correct A. Price increases and quantity decreases

B. Price decreases and quantity increases

C. Price increases and quantity increases

D. Price decreases and quantity decreases

Correct Answer: A

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Question 8

A country's balance of payments is given by the following equation: \( BOP = X - M \), where ( X ) is the value of exports and ( M ) is the value of imports. If the country's exports are \( X = 100 \) and imports are \( M = 80 \), what is the balance of payments?

Correct A. ₦20

B. ₦30

C. ₦40

D. ₦50

Correct Answer: A

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Question 9

A firm's production function is given by \( Q = 2K^0.5L^0.5 \). If the firm's capital is \( K = 16 \) and labor is \( L = 9 \), what is the level of output?

A. 12

B. 15

Correct C. 18

D. 20

Correct Answer: C

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Question 10

A country's GDP is given by the following equation: \( GDP = C + I + G + \( X - M \ \) ), where ( C ) is consumption, ( I ) is investment, ( G ) is government sp\ending, ( X ) is exports, and ( M ) is imports. If the country's consumption is \( C = 100 \), investment is \( I = 20 \), government sp\ending is \( G = 30 \), exports are \( X = 80 \), and imports are \( M = 60 \), what is the country's GDP?

A. ₦250

B. ₦300

Correct C. ₦350

D. ₦400

Correct Answer: C

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Question 11

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

A. marginal benefit

Correct B. marginal \cost

C. average product

D. average \cost

Correct Answer: B

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Question 12

A firm's demand curve shifts to the right due to an increase in consumer income, which leads to a

A. increase in price

B. decrease in quantity demanded

C. increase in quantity supplied

Correct D. decrease in price

Correct Answer: D

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Question 13

The agricultural sector in Nigeria contributes significantly to the country's GDP, but its growth rate has been

A. higher than the industrial sector

Correct B. lower than the industrial sector

C. equal to the industrial sector

D. negligible

Correct Answer: B

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Question 14

A firm's revenue function is given by R(x) = 2x^2 + 5x - 3. The marginal revenue function is

Correct A. R'(x) = 4x + 5

B. R'(x) = 2x + 5

C. R'(x) = 4x - 5

D. R'(x) = 2x - 5

Correct Answer: A

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Question 15

The money supply in an economy is increased by the central bank, which leads to a

A. decrease in interest rates

B. increase in interest rates

C. decrease in inflation rate

Correct D. increase in inflation rate

Correct Answer: D

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Question 16

Suppose the demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is -2, what is the percentage change in quantity demanded when the price increases by 10?

Correct A. 20%

B. 10%

C. 5%

D. 15%

Correct Answer: A

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Question 17

A country's GDP is calculated as the sum of the value of all final goods and services produced within its borders. If the country's GDP is ₦10,000,000,000 and the value of imports is ₦2,000,000,000, what is the value of the country's net exports?

Correct A. ₦8,000,000,000

B. ₦6,000,000,000

C. ₦4,000,000,000

D. ₦2,000,000,000

Correct Answer: A

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Question 18

A firm's supply curve is given by the equation Qs = 2P + 10, where Qs is the quantity supplied and P is the price. If the price elasticity of supply is 2, what is the percentage change in quantity supplied when the price increases by 5?

Correct A. 10%

B. 20%

C. 30%

D. 40%

Correct Answer: A

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Question 19

A country's balance of payments account is given by the equation BOP = X - M, where BOP is the balance of payments, X is the value of exports, and M is the value of imports. If the value of exports is ₦5,000,000,000 and the value of imports is ₦3,000,000,000, what is the balance of payments?

Correct A. ₦2,000,000,000

B. ₦4,000,000,000

C. ₦6,000,000,000

D. ₦8,000,000,000

Correct Answer: A

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Question 20

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 price elasticity of demand is -2, what is the price elasticity of demand when the quantity demanded is 80?

A. -1

Correct B. -2

C. -3

D. -4

Correct Answer: B

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Question 21

A country's GDP is calculated as the sum of the value of all final goods and services produced within its borders. If the country's GDP is ₦10,000,000,000 and the value of imports is ₦2,000,000,000, what is the value of the country's net exports?

Correct A. ₦8,000,000,000

B. ₦6,000,000,000

C. ₦4,000,000,000

D. ₦2,000,000,000

Correct Answer: A

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Question 22

A firm's supply curve is given by the equation Qs = 2P + 10, where Qs is the quantity supplied and P is the price. If the price elasticity of supply is 2, what is the percentage change in quantity supplied when the price increases by 5?

Correct A. 10%

B. 20%

C. 30%

D. 40%

Correct Answer: A

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Question 23

A country's balance of payments account is given by the equation BOP = X - M, where BOP is the balance of payments, X is the value of exports, and M is the value of imports. If the value of exports is ₦5,000,000,000 and the value of imports is ₦3,000,000,000, what is the balance of payments?

Correct A. ₦2,000,000,000

B. ₦4,000,000,000

C. ₦6,000,000,000

D. ₦8,000,000,000

Correct Answer: A

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Question 24

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 price elasticity of demand is -2, what is the price elasticity of demand when the quantity demanded is 80?

A. -1

B. -2

C. -3

D. -4

Correct Answer: VIEW ANSWER

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Question 25

A firm's total revenue is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm sells 20 units, what is its total revenue?

A. ₦1800

Correct B. ₦2000

C. ₦2200

D. ₦2400

Correct Answer: B

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