Practice Post UTME NOUN economics 2024 Past Questions

Question 1

Calculate the Gross National Product (GNP) of Nigeria for the year 2022, given that the Gross Domestic Product (GDP) is ₦12,500,000,000,000 and the net factor income from abroad is ₦1,200,000,000.

Correct A. ₦13,700,000,000,000

B. ₦12,700,000,000,000

C. ₦13,200,000,000,000

D. ₦12,200,000,000,000

Correct Answer: A

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Question 2

A firm is considering two different production levels. At level A, the total \cost is ₦1,500,000 and the total revenue is ₦1,800,000. At level B, the total \cost is ₦2,000,000 and the total revenue is ₦2,200,000. Which production level should the firm choose?

Correct A. Level A

B. Level B

C. Both levels are equally profitable

D. Neither level is profitable

Correct Answer: A

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Question 3

A monopolist faces a demand curve given by the equation \( p = 100 - 2q \). The firm's marginal \cost is ₦50. What is the monopolist's profit-maximizing quantity?

A. 50 units

Correct B. 75 units

C. 100 units

D. 125 units

Correct Answer: B

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Question 4

A firm is considering two different production levels. At level A, the total \cost is ₦1,500,000 and the total revenue is ₦1,800,000. At level B, the total \cost is ₦2,000,000 and the total revenue is ₦2,200,000. Which production level should the firm choose?

Correct A. Level A

B. Level B

C. Both levels are equally profitable

D. Neither level is profitable

Correct Answer: A

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Question 5

A monopolist faces a demand curve given by the equation \( p = 100 - 2q \). The firm's marginal \cost is ₦50. What is the monopolist's profit-maximizing quantity?

A. 50 units

Correct B. 75 units

C. 100 units

D. 125 units

Correct Answer: B

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Question 6

A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing quantity and price.

A. 50 units, ₦150

Correct B. 75 units, ₦100

C. 100 units, ₦50

D. 50 units, ₦200

Correct Answer: B

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Question 7

A consumer's utility function is given by U(x,y) = 2x + 3y. The budget constraint is 2x + 3y = 12. Find the consumer's optimal bundle of x and y.

Correct A. (2,4)

B. (4,2)

C. (3,3)

D. (1,5)

Correct Answer: A

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Question 8

A firm has a production function F(Q) = 2Q^2 + 5Q. The price of the good is ₦100. Find the firm's profit-maximizing quantity and revenue.

A. 25 units, ₦2500

Correct B. 50 units, ₦5000

C. 75 units, ₦7500

D. 100 units, ₦10000

Correct Answer: B

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Question 9

A country's GDP is given by the equation Y = C + I + G. If the country's consumption function is C = 100 + 0.8Y, the investment function is I = 200 + 0.2Y, and government sp\ending is G = 500, find the country's equilibrium GDP.

A. ₦1000

B. ₦1500

Correct C. ₦2000

D. ₦2500

Correct Answer: C

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Question 10

A firm's \cost function is given by C(Q) = 2Q^2 + 10Q. The price of the good is ₦100. Find the firm's profit-maximizing quantity and \cost.

A. 25 units, ₦625

Correct B. 50 units, ₦1250

C. 75 units, ₦1875

D. 100 units, ₦2500

Correct Answer: B

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Question 11

A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing quantity and price.

A. Q = 20, P = 40

B. Q = 30, P = 50

Correct C. Q = 40, P = 60

D. Q = 50, P = 70

Correct Answer: C

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Question 12

A firm is considering two different production processes. Process A has a fixed \cost of ₦100,000 and a variable \cost of ₦50 per unit. Process B has a fixed \cost of ₦150,000 and a variable \cost of ₦30 per unit. If the selling price is ₦80 per unit, which process should the firm choose?

Correct A. Process A

B. Process B

C. Both processes are equally profitable

D. Neither process is profitable

Correct Answer: A

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Question 13

Agricultural production in Nigeria is characterized by a high degree of seasonality. U\sing the concept of elasticity of demand, explain why farmers in Nigeria may not benefit from price fluctuations.

A. Farmers in Nigeria have a high degree of price elasticity of supply

Correct B. Farmers in Nigeria have a low degree of price elasticity of demand

C. Farmers in Nigeria have a high degree of price elasticity of demand

D. Farmers in Nigeria have a low degree of price elasticity of supply

Correct Answer: B

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Question 14

A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing quantity and price.

A. Q = 20, P = 40

B. Q = 30, P = 50

Correct C. Q = 40, P = 60

D. Q = 50, P = 70

Correct Answer: C

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Question 15

A firm is considering two different production processes. Process A has a fixed \cost of ₦100,000 and a variable \cost of ₦50 per unit. Process B has a fixed \cost of ₦150,000 and a variable \cost of ₦30 per unit. If the selling price is ₦80 per unit, which process should the firm choose?

Correct A. Process A

B. Process B

C. Both processes are equally profitable

D. Neither process is profitable

Correct Answer: A

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Question 16

Consider a consumer with a utility function U(x,y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦3 respectively, determine the optimal quantities of the two goods that the consumer will purchase.

Correct A. (x,y) = (80,60)

B. (x,y) = (60,80)

C. (x,y) = (40,40)

D. (x,y) = (20,20)

Correct Answer: A

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Question 17

A firm is facing a demand curve given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal \cost is cons\tant at ₦10, determine the profit-maximizing price and quantity.

A. P = ₦40, Q = 60

Correct B. P = ₦30, Q = 70

C. P = ₦20, Q = 80

D. P = ₦10, Q = 90

Correct Answer: B

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Question 18

A government is considering a tax on a particular good. The supply curve of the good is given by Q = 100 + 2P, where Q is the quantity supplied and P is the price. If the government wants to collect a tax of ₦20 per unit, determine the new equilibrium price and quantity.

A. P = ₦30, Q = 60

Correct B. P = ₦40, Q = 80

C. P = ₦50, Q = 100

D. P = ₦60, Q = 120

Correct Answer: B

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Question 19

A country is experiencing a trade deficit of ₦100 billion. If the country's exports are ₦200 billion and its imports are ₦300 billion, determine the country's balance of payments.

A. ₦100 billion surplus

Correct B. ₦100 billion deficit

C. ₦200 billion surplus

D. ₦300 billion deficit

Correct Answer: B

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Question 20

A firm is considering investing in a new project. The project has a net present value (NPV) of ₦100 million and a payback period of 5 years. Determine the internal rate of return (IRR) of the project.

A. 15%

Correct B. 20%

C. 25%

D. 30%

Correct Answer: B

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Question 21

A firm's \cost function is given by C(q) = 2q^2 + 5q + 10. If the firm produces 10 units, what is the total \cost?

A. ₦150

B. ₦250

Correct C. ₦350

D. ₦450

Correct Answer: C

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Question 22

A monopolist faces a demand curve given by p = 100 - 2q. If the firm produces 20 units, what is the consumer surplus?

A. ₦1000

Correct B. ₦2000

C. ₦3000

D. ₦4000

Correct Answer: B

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Question 23

A consumer's utility function is given by u(x, y) = 2x + 3y. If the consumer has a budget of ₦100 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?

Correct A. (10, 5)

B. (5, 10)

C. (15, 3)

D. (20, 2)

Correct Answer: A

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Question 24

A firm's production function is given by q = 2K^0.5L^0.5. If the firm wants to produce 100 units, what is the minimum \cost of production?

A. ₦500

B. ₦1000

C. ₦1500

Correct D. ₦2000

Correct Answer: D

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Question 25

A firm's demand function is given by q = 100 - 2p. If the firm produces 50 units, what is the elasticity of demand?

A. 0.5

Correct B. 1

C. 2

D. 3

Correct Answer: B

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