Practice Post UTME NOUN economics 2018 Past Questions

Question 1

A firm's total revenue is given by the equation \( TR = 20q - 0.5q^2 \), where ( q ) is the quantity sold. Find the quantity that maximizes revenue.

A. 10

B. 20

C. 30

D. 40

Question 2

A firm's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm increases labor from 100 units to 121 units and capital from 100 units to 121 units, what is the percentage change in output?

A. 10%

B. 20%

C. 30%

D. 40%

Question 3

A consumer's indifference curve is downward sloping. What is the implication of this for the consumer's marginal rate of substitution (MRS)?

A. The MRS is cons\tant

B. The MRS is decrea\sing

C. The MRS is increa\sing

D. The MRS is zero

Question 4

A government decides to implement a policy to reduce the price of a commodity by 20%. If the initial price is ₦100, what is the new price?

A. ₦80

B. ₦90

C. ₦100

D. ₦120

Question 5

The concept of opportunity \cost is a fundamental principle in economics that states that the value of the next best alternative that must be given up when a choice is made is the opportunity \cost. Which of the following statements best describes the concept of opportunity \cost?

A. The concept of opportunity \cost states that the value of the next best alternative that must be given up when a choice is made is the opportunity \cost.

B. The concept of opportunity \cost states that the value of the next best alternative that must be given up when a choice is made is the opportunity \cost, and that it is always equal to the \cost of the choice made.

C. The concept of opportunity \cost states that the value of the next best alternative that must be given up when a choice is made is the opportunity \cost, and that it is always greater than the \cost of the choice made.

D. The concept of opportunity \cost states that the value of the next best alternative that must be given up when a choice is made is the opportunity \cost, and that it is always less than the \cost of the choice made.

Question 6

A country's GDP is ₦10 trillion. If the country's net factor income from abroad is ₦500 billion, what is its GNP?

A. ₦10.5 trillion

B. ₦10.7 trillion

C. ₦10.9 trillion

D. ₦11.1 trillion

Question 7

A company's \cost function is given by C = 100 + 2L + 3K, where C is \cost, L is labor, and K is capital. If the company increases labor from 50 units to 75 units and capital from 50 units to 75 units, what is the total change in \cost?

A. ₦250

B. ₦500

C. ₦750

D. ₦1000

Question 8

A firm faces a demand curve given by \( Q = 100 - 2P \), where ( Q ) is the quantity demanded and ( P ) is the price in naira. The firm's \cost function is given by \( C = 50 + 10Q \), where ( C ) is the total \cost. Calculate the firm's profit-maximizing price and quantity.

A. P = ₦50, Q = 50

B. P = ₦60, Q = 40

C. P = ₦70, Q = 30

D. P = ₦80, Q = 20

Question 9

A firm's \cost function is given by ( C(q) = 10q + 5 ). If the price is ₦20, what is the profit-maximizing quantity?

A. 5

B. 10

C. 15

D. 20

Question 10

The opportunity \cost of producing one more unit of a good is the value of the next best alternative that must be given up. 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 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 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 remains cons\tant.

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 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 decreases and then increases.

Question 11

The following diagram shows the production possibilities frontier (PPF) of a country. What is the opportunity \cost of producing 100 units of good X?

A. 50 units of good Y

B. 100 units of good Y

C. 150 units of good Y

D. 200 units of good Y

Question 12

A country's balance of payments (BOP) is given by the equation BOP = X - M + \( F - I \). If the country's exports are 500, imports are 300, foreign investment is 200, and domestic investment is 100, what is the country's BOP?

A. 100

B. 200

C. 300

D. 400

Question 13

Consider a firm operating in a perfectly competitive market with a production function given by Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, calculate the optimal input combination (L, K) that maximizes profits, assuming a market price of 30.

A. L = 100, K = 100

B. L = 50, K = 50

C. L = 200, K = 200

D. L = 25, K = 25

Question 14

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. The BOP is divided into three main components: the current account, the capital account, and the financial account. Which of the following statements best describes the current account?

A. The current account includes transactions related to the exchange of goods and services between a country and the rest of the world.

B. The current account includes transactions related to the exchange of capital and financial assets between a country and the rest of the world.

C. The current account includes transactions related to the exchange of goods, services, and income between a country and the rest of the world.

D. The current account includes transactions related to the exchange of capital, financial assets, and income between a country and the rest of the world.

Question 15

A country's GDP is ₦100 billion. If the government decides to increase the price of a commodity by 10%, what is the new GDP?

A. ₦110 billion

B. ₦120 billion

C. ₦130 billion

D. ₦140 billion

POST UTME NOUN 2018 Economics | Objective

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