Practice Post UTME NOUN economics 2021 Past Questions

Question 1

Suppose 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 supply of the commodity is given by the equation Qs = 2P - 100, where Qs is the quantity supplied, find the equilibrium price and quantity.

A. ₦50

B. ₦75

Correct C. ₦100

D. ₦125

Correct Answer: C

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Question 2

A monopolistically competitive firm faces a demand curve given by Q = 100 - 2P and a supply curve given by Q = 2P - 100. If the firm's marginal revenue is given by MR = 200 - 2Q and its marginal \cost is given by MC = 50 + 2Q, find the firm's profit-maximizing quantity and price.

A. ₦75

B. ₦100

Correct C. ₦125

D. ₦150

Correct Answer: C

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Question 3

The government of Nigeria has implemented a policy to increase agricultural production by providing subsidies to farmers. If the demand for a particular crop is given by Qd = 100 - 2P and the supply of the crop is given by Qs = 2P - 100, find the equilibrium price and quantity after the policy is implemented.

A. ₦50

B. ₦75

Correct C. ₦100

D. ₦125

Correct Answer: C

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Question 4

A firm's demand curve is given by Q = 100 - 2P and its supply curve is given by Q = 2P - 100. If the firm's marginal revenue is given by MR = 200 - 2Q and its marginal \cost is given by MC = 50 + 2Q, find the firm's profit-maximizing quantity and price.

A. ₦75

B. ₦100

Correct C. ₦125

D. ₦150

Correct Answer: C

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Question 5

The elasticity of demand for a particular commodity is given by the equation E = -2P/Q. If the price of the commodity is ₦100 and the quantity demanded is 50 units, find the elasticity of demand.

A. -0.2

B. -0.5

C. -1.0

Correct D. -2.0

Correct Answer: D

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Question 6

Consider a firm operating in a perfectly competitive market with a given production function Q = 2L^0.5K^0.5. If the price of the good is $10 and the firm's \cost function is C(L,K) = 2L + 3K, what is the optimal level of labor and capital to maximize profits?

Correct A. L = 4, K = 9

B. L = 9, K = 4

C. L = 16, K = 9

D. L = 9, K = 16

Correct Answer: A

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Question 7

A country's GDP is $100 billion, its imports are $20 billion, and its exports are $30 billion. What is its balance of payments?

A. $10 billion surplus

Correct B. $10 billion deficit

C. $20 billion surplus

D. $20 billion deficit

Correct Answer: B

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Question 8

A firm's demand function is Q = 100 - 2P, and its supply function is Q = 2P - 100. What is the equilibrium price and quantity?

Correct A. P = $50, Q = 50

B. P = $75, Q = 25

C. P = $25, Q = 75

D. P = $100, Q = 0

Correct Answer: A

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Question 9

A country's GNP is $120 billion, its GDP is $100 billion, and its net factor income from abroad is $10 billion. What is its national income?

Correct A. $130 billion

B. $120 billion

C. $110 billion

D. $100 billion

Correct Answer: A

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Question 10

A firm's production function is Q = 2L^0.5K^0.5, and its \cost function is C(L,K) = 2L + 3K. If the price of the good is $10, what is the optimal level of labor and capital to maximize profits?

Correct A. L = 4, K = 9

B. L = 9, K = 4

C. L = 16, K = 9

D. L = 9, K = 16

Correct Answer: A

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Question 11

A consumer's indifference curve is downward sloping and convex to the origin. What does this imply about the consumer's preferences?

A. The consumer prefers more of good X to good Y.

Correct B. The consumer prefers more of good Y to good X.

C. The consumer is indifferent between good X and good Y.

D. The consumer prefers a bundle with more of both goods X and Y.

Correct Answer: B

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Question 12

A firm's production function is given by Q = 2L^$ 1/2 $K^$ 1/2 $. What is the return to scale of the firm?

Correct A. Increa\sing returns to scale

B. Decrea\sing returns to scale

C. Cons\tant returns to scale

D. No returns to scale

Correct Answer: A

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Question 13

A country's GDP is ₦100 billion, its imports are ₦20 billion, and its exports are ₦15 billion. What is its net foreign income?

A. ₦5 billion

B. ₦10 billion

Correct C. ₦15 billion

D. ₦20 billion

Correct Answer: C

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Question 14

A firm's demand function is given by Q = 100 - 2P. If the price is ₦10, what is the quantity demanded?

A. 20 units

B. 40 units

Correct C. 60 units

D. 80 units

Correct Answer: C

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Question 15

A consumer's budget constraint is given by 2X + 3Y = ₦60. If the consumer sp\ends ₦20 on good X, how much will they sp\end on good Y?

A. ₦10

B. ₦20

Correct C. ₦30

D. ₦40

Correct Answer: C

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Question 16

A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's supply function is given by Q = 2P - 100, find the equilibrium price and quantity.

A. P = 50, Q = 0

Correct B. P = 75, Q = 25

C. P = 100, Q = 0

D. P = 50, Q = 50

Correct Answer: B

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Question 17

A monopolist faces a demand curve given by P = 100 - Q. The monopolist's \cost function is given by C(Q) = 20Q + 100. Find the monopolist's profit-maximizing quantity and price.

Correct A. Q = 20, P = 80

B. Q = 40, P = 60

C. Q = 60, P = 40

D. Q = 80, P = 20

Correct Answer: A

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Question 18

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 is $100 billion, consumption is $50 billion, investment is $20 billion, government sp\ending is $30 billion, exports are $40 billion, and imports are $20 billion, find the country's GDP.

Correct A. $100 billion

B. $120 billion

C. $80 billion

D. $60 billion

Correct Answer: A

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Question 19

A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm has 100 units of labor and 100 units of capital, find the firm's output.

A. 100

B. 200

Correct C. 300

D. 400

Correct Answer: C

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Question 20

A country's national income is given by the equation Y = C + I + G + $ X - M $, where Y is national income, C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's national income is $100 billion, consumption is $50 billion, investment is $20 billion, government sp\ending is $30 billion, exports are $40 billion, and imports are $20 billion, find the country's national income.

Correct A. $100 billion

B. $120 billion

C. $80 billion

D. $60 billion

Correct Answer: A

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Question 21

A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's supply function is given by Q = 2P - 100, find the equilibrium price and quantity.

A. P = 50, Q = 0

Correct B. P = 75, Q = 25

C. P = 100, Q = 0

D. P = 50, Q = 50

Correct Answer: B

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Question 22

A monopolist faces a demand curve given by P = 100 - Q. The monopolist's \cost function is given by C(Q) = 20Q + 100. Find the monopolist's profit-maximizing quantity and price.

Correct A. Q = 20, P = 80

B. Q = 40, P = 60

C. Q = 60, P = 40

D. Q = 80, P = 20

Correct Answer: A

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Question 23

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 is $100 billion, consumption is $50 billion, investment is $20 billion, government sp\ending is $30 billion, exports are $40 billion, and imports are $20 billion, find the country's GDP.

Correct A. $100 billion

B. $120 billion

C. $80 billion

D. $60 billion

Correct Answer: A

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Question 24

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

A. ₦20,000

B. ₦30,000

Correct C. ₦40,000

D. ₦50,000

Correct Answer: C

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Question 25

Suppose the demand function for a product is given by Q = 100 - 2P and the supply function is given by Q = 2P - 10. What is the equilibrium price and quantity?

Correct A. P = ₦20, Q = 40

B. P = ₦30, Q = 50

C. P = ₦40, Q = 60

D. P = ₦50, Q = 70

Correct Answer: A

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