Practice Post UTME LEAD CITY UNIVERSITY economics 2017 Past Questions

Question 1

Consider a country with a balance of payments deficit. Which of the following policies would most likely increase the deficit?

A. Increase government sp\ending

B. Decrease taxes

C. Increase exports

Correct D. Increase imports

Correct Answer: D

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

Question 2

A firm is producing a good with a production function Q = 2L^0.5K^0.5. If the price of the good is $10 and the price of labor is $5, what is the optimal level of labor to produce 100 units of the good?

A. 20 units of labor

B. 30 units of labor

Correct C. 40 units of labor

D. 50 units of labor

Correct Answer: C

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

Question 3

A consumer has a utility function U = 2x + 3y. If the prices of x and y are $5 and $10 respectively, and the consumer has a budget of $50, what is the optimal bundle of x and y?

A. x = 5, y = 2

Correct B. x = 10, y = 1

C. x = 15, y = 0

D. x = 0, y = 5

Correct Answer: B

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

Question 4

Consider a country with a tariff rate of 20% on imported goods. If the price of the imported good is $100, what is the effective price paid by consumers?

A. $80

B. $90

C. $100

Correct D. $120

Correct Answer: D

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

Question 5

A firm is producing a good with a production function Q = 3L^0.5K^0.5. If the price of the good is $15 and the price of labor is $10, what is the optimal level of labor to produce 150 units of the good?

A. 25 units of labor

B. 35 units of labor

Correct C. 45 units of labor

D. 55 units of labor

Correct Answer: C

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

Question 6

The opportunity \cost of producing one more unit of a good is the amount of another good that must be given up in order to produce that unit. This concept is closely related to the law of increa\sing opportunity \costs, which states that as the production of a good increases, the opportunity \cost of producing one more unit of that good also increases. Which of the following statements best describes the law of increa\sing opportunity \costs?

A. The law of increa\sing opportunity \costs states that as the production of a good increases, the opportunity \cost of producing one more unit of that good decreases.

B. The law of increa\sing opportunity \costs states that as the production of a good increases, the opportunity \cost of producing one more unit of that good remains cons\tant.

Correct C. The law of increa\sing opportunity \costs states that as the production of a good increases, the opportunity \cost of producing one more unit of that good also increases.

D. The law of increa\sing opportunity \costs states that as the production of a good increases, the opportunity \cost of producing one more unit of that good decreases and then increases.

Correct Answer: C

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

Question 7

A country's balance of payments (BOP) is a statistical statement that summarizes all economic transactions between residents and non-residents over a specific period of time. Which of the following is a component of the current account in the BOP?

A. Exports of goods and services

B. Imports of goods and services

C. Net factor income from abroad

Correct D. All of the above

Correct Answer: D

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

Question 8

A perfectly competitive market is characterized by a large number of firms producing a homogeneous product. Which of the following is a characteristic of a perfectly competitive market?

A. A \single firm produces the entire output of the market

Correct B. A large number of firms produce a homogeneous product

C. A small number of firms produce a differentiated product

D. A \single firm sets the price of the product

Correct Answer: B

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

Question 9

The concept of scarcity refers to the idea that the needs and wants of individuals are unlimited, but the resources available to satisfy those needs and wants are limited. Which of the following is a consequence of scarcity?

A. Individuals can always satisfy their needs and wants

B. Resources are abundant and can satisfy all needs and wants

Correct C. Individuals must make choices about how to allocate their resources

D. Needs and wants are unlimited, but resources are abundant

Correct Answer: C

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

Question 10

Gross Domestic Product (GDP) is a measure of the total value of all final goods and services produced within a country's borders over a specific period of time. Which of the following is included in the calculation of GDP?

A. Imports of goods and services

B. Exports of goods and services

C. Net factor income from abroad

Correct D. All of the above

Correct Answer: D

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

Question 11

A monopoly is a market structure in which a \single firm supplies the entire market with a particular good or service. Which of the following is a characteristic of a monopoly?

A. A large number of firms produce a homogeneous product

Correct B. A \single firm produces the entire output of the market

C. A small number of firms produce a differentiated product

D. A \single firm sets the price of the product

Correct Answer: B

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

Question 12

The concept of opportunity \cost refers to the value of the next best alternative that is given up when a choice is made. Which of the following is an example of an opportunity \cost?

A. The \cost of producing a good

B. The revenue generated from selling a good

Correct C. The value of the next best alternative that is given up

D. The \cost of importing a good

Correct Answer: C

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

Question 13

Gross National Product (GNP) is a measure of the total value of all final goods and services produced by a country's citizens, regardless of where they are produced. Which of the following is included in the calculation of GNP?

A. Imports of goods and services

B. Exports of goods and services

C. Net factor income from abroad

Correct D. All of the above

Correct Answer: D

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

Question 14

The concept of agricultural industrialization in Nigeria is closely related to the idea of increa\sing the productivity of the agricultural sector through the use of modern techno\logy and mechanization. Which of the following is a major advantage of agricultural industrialization in Nigeria?

Correct A. Increased food production

B. Improved rural employment opportunities

C. Enhanced agricultural exports

D. Increased agricultural income

Correct Answer: A

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

Question 15

The National Bureau of Statistics (NBS) releases the Gross Domestic Product (GDP) of Nigeria on a quarterly basis. What is the primary purpose of the GDP?

Correct A. To measure the total value of goods and services produced within the country

B. To measure the total value of goods and services produced abroad

C. To measure the total value of goods and services consumed within the country

D. To measure the total value of goods and services imported into the country

Correct Answer: A

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

Question 16

The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the product is given by the equation Qs = 50 + 3P, where Qs is the quantity supplied and P is the price. What is the equilibrium price and quantity?

A. P = 20, Q = 60

Correct B. P = 30, Q = 80

C. P = 40, Q = 100

D. P = 50, Q = 120

Correct Answer: B

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

Question 17

The government of Nigeria has introduced a new economic policy aimed at promoting economic growth and development. Which of the following is a major objective of the policy?

A. To reduce poverty and inequality

Correct B. To promote economic growth and development

C. To increase government revenue

D. To reduce inflation

Correct Answer: B

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

Question 18

A monopolistic firm has a demand curve given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The firm's marginal revenue (MR) is given by the equation MR = 200 - 2P. What is the firm's optimal price and quantity?

A. P = 20, Q = 60

Correct B. P = 30, Q = 80

C. P = 40, Q = 100

D. P = 50, Q = 120

Correct Answer: B

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

Question 19

The demand for a commodity 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 0.5, find the percentage change in quantity demanded when the price increases by 10%.

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 20

A country's GDP is given by the equation Y = C + I + G, where Y is the GDP, C is the consumption, I is the investment, and G is the government sp\ending. If the consumption is 100, the investment is 50, and the government sp\ending is 75, find the GDP.

A. 225

B. 250

Correct C. 275

D. 300

Correct Answer: C

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

Question 21

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 0.2, find the percentage change in quantity supplied when the price increases by 15%.

A. 7.5%

B. 10%

Correct C. 12.5%

D. 15%

Correct Answer: C

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

Question 22

A country's balance of payments is given by the equation BOP = X - M, where BOP is the balance of payments, X is the exports, and M is the imports. If the exports are 100 and the imports are 75, find the balance of payments.

A. 25

Correct B. 50

C. 75

D. 100

Correct Answer: B

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

Question 23

A government's budget is given by the equation B = T + I, where B is the budget, T is the taxation, and I is the interest. If the taxation is 50 and the interest is 25, find the budget.

A. 75

B. 100

Correct C. 125

D. 150

Correct Answer: C

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

Question 24

Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is downward sloping and the firms are price takers, what is the equilibrium price and quantity of the product?

Correct A. The equilibrium price and quantity are determined by the intersection of the market demand and supply curves.

B. The equilibrium price and quantity are determined by the firms' individual supply curves.

C. The equilibrium price and quantity are determined by the market demand curve and the firms' individual demand curves.

D. The equilibrium price and quantity are determined by the firms' individual supply curves and the market demand curve.

Correct Answer: A

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

Question 25

A monopolist faces a market demand curve given by Q = 100 - 2P and a marginal revenue curve given by MR = 20 - 2Q. What is the monopolist's profit-maximizing price and quantity?

Correct A. P = 40, Q = 30

B. P = 30, Q = 40

C. P = 20, Q = 50

D. P = 50, Q = 20

Correct Answer: A

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

POST UTME LEAD CITY UNIVERSITY 2017 Economics | Objective

Master the Exam!

Help others prepare! Share this practice hub: