Practice Post UTME SKYLINE UNIVERSITY economics 2025 Past Questions

Question 1

A monopolistically competitive firm faces a demand curve with elasticity of -2. If the firm increases its price by 10%, what is the percentage change in quantity demanded?

A. -20%

B. -15%

Correct C. -10%

D. -5%

Correct Answer: C

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Question 2

A firm is producing at a point where its marginal revenue product of labor is equal to its wage rate. If the firm increases the wage rate by 15%, what will happen to the quantity of labor hired?

A. Increase by 10%

Correct B. Decrease by 10%

C. Increase by 15%

D. Decrease by 15%

Correct Answer: B

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Question 3

A consumer has a budget constraint of ₦1000 and a demand curve for a good given by Q = 100 - 2P. If the price of the good is ₦200, how much will the consumer sp\end on the good?

A. ₦400

Correct B. ₦600

C. ₦800

D. ₦1000

Correct Answer: B

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Question 4

A firm is producing a good with a production function given by Q = 2L^2. If the firm increases the number of workers from 5 to 6, what is the percentage change in output?

A. 10%

B. 20%

Correct C. 30%

D. 40%

Correct Answer: C

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Question 5

A consumer has a utility function given by U = 2X + 3Y. If the consumer has a budget constraint of ₦1000 and the prices of the two goods are ₦200 and ₦300 respectively, what is the optimal bundle of goods?

Correct A. (10, 5)

B. (5, 10)

C. (15, 3)

D. (20, 2)

Correct Answer: A

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Question 6

A firm's production function is given by Q = 2L^0.5H^0.5. If the firm's current labor and capital inputs are L = 4 and H = 9, respectively, what is the marginal product of labor (MPL) when the firm is producing at the current level of inputs?

Correct A. 1.5

B. 2.5

C. 3.5

D. 4.5

Correct Answer: A

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Question 7

A country's balance of payments (BOP) 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 valued at ₦100 billion and its imports are valued at ₦120 billion, what is the country's balance of payments?

Correct A. ₦20 billion

B. ₦30 billion

C. ₦40 billion

D. ₦50 billion

Correct Answer: A

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Question 8

A firm is considering two different production techno\logies: a traditional techno\logy with a production function Q = 2L^0.5H^0.5 and a modern techno\logy with a production function Q = 3LH. If the firm's current labor and capital inputs are L = 4 and H = 9, respectively, which techno\logy will yield a higher level of output?

A. Traditional techno\logy

Correct B. Modern techno\logy

C. Both techno\logies will yield the same level of output

D. Neither techno\logy will yield a higher level of output

Correct Answer: B

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Question 9

A country's economy is characterized by a perfectly competitive market structure. If the country's demand for a particular good is given by the following equation: Qd = 100 - 2P, and the country's supply of the good is given by the following equation: Qs = 2P - 50, what is the equilibrium price and quantity of the good?

Correct A. P = ₦20, Q = 50

B. P = ₦30, Q = 60

C. P = ₦40, Q = 70

D. P = ₦50, Q = 80

Correct Answer: A

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Question 10

A firm's production function is given by Q = 2L^0.5H^0.5. If the firm's current labor and capital inputs are L = 4 and H = 9, respectively, what is the firm's total product?

A. 18

Correct B. 20

C. 22

D. 24

Correct Answer: B

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Question 11

A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor, and K is capital. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the firm's current output?

A. 24

Correct B. 32

C. 48

D. 64

Correct Answer: B

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Question 12

A monopolist faces a demand curve given by P = 100 - 2Q. The firm's marginal \cost (MC) is given by MC = 10 + 2Q. What is the monopolist's profit-maximizing quantity?

A. 20

B. 30

Correct C. 40

D. 50

Correct Answer: C

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Question 13

A firm's revenue function is given by R = 100Q - 2Q^2. If the firm's current output is Q = 10, what is the firm's current revenue?

A. 600

B. 800

Correct C. 1000

D. 1200

Correct Answer: C

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Question 14

A firm's \cost function is given by C = 100 + 20Q. If the firm's current output is Q = 5, what is the firm's current \cost?

A. 150

B. 200

Correct C. 250

D. 300

Correct Answer: C

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Question 15

A firm's demand curve is given by P = 100 - 2Q. If the firm's current price is P = 80, what is the firm's current quantity demanded?

A. 10

B. 20

Correct C. 30

D. 40

Correct Answer: C

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Question 16

A consumer's indifference curve is represented by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle of x and y?

Correct A. (100, 200)

B. (200, 100)

C. (50, 300)

D. (300, 50)

Correct Answer: A

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Question 17

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 value of exports is ₦500 billion and the value of imports is ₦600 billion, what is the country's balance of payments?

Correct A. ₦-100 billion

B. ₦100 billion

C. ₦500 billion

D. ₦600 billion

Correct Answer: A

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Question 18

A firm's production function is given by the equation \( Q = 2L^2 + 3K^2 \), where Q is the quantity produced, L is the number of labor hours, and K is the amount of capital. If the firm wants to produce 100 units of output, how many labor hours and capital are required?

A. (10, 10)

B. (20, 20)

Correct C. (30, 30)

D. (40, 40)

Correct Answer: C

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Question 19

A consumer's demand for a good is given by the equation \( Q = 100 - 2P \), where Q is the quantity demanded and P is the price. If the price of the good is ₦20, what is the quantity demanded?

A. 50

Correct B. 60

C. 70

D. 80

Correct Answer: B

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Question 20

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 consumption is ₦500 billion, investment is ₦200 billion, government sp\ending is ₦300 billion, exports are ₦600 billion, and imports are ₦400 billion, what is the country's GDP?

A. ₦1.5 trillion

Correct B. ₦1.6 trillion

C. ₦1.7 trillion

D. ₦1.8 trillion

Correct Answer: B

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Question 21

A firm's production function is given by the equation \( Q = 2L^2 + 3K^2 \), where Q is the quantity produced, L is the number of labor hours, and K is the amount of capital. If the firm wants to produce 100 units of output, how many labor hours and capital are required?

A. (10, 10)

B. (20, 20)

Correct C. (30, 30)

D. (40, 40)

Correct Answer: C

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Question 22

A consumer's demand for a good is given by the equation \( Q = 100 - 2P \), where Q is the quantity demanded and P is the price. If the price of the good is ₦20, what is the quantity demanded?

A. 50

Correct B. 60

C. 70

D. 80

Correct Answer: B

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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 consumption is ₦500 billion, investment is ₦200 billion, government sp\ending is ₦300 billion, exports are ₦600 billion, and imports are ₦400 billion, what is the country's GDP?

A. ₦1.5 trillion

Correct B. ₦1.6 trillion

C. ₦1.7 trillion

D. ₦1.8 trillion

Correct Answer: B

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Question 24

A firm's production function is given by the equation \( Q = 2L^2 + 3K^2 \), where Q is the quantity produced, L is the number of labor hours, and K is the amount of capital. If the firm wants to produce 100 units of output, how many labor hours and capital are required?

A. (10, 10)

B. (20, 20)

C. (30, 30)

D. (40, 40)

Correct Answer: VIEW ANSWER

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Question 25

A firm's demand curve is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the firm's supply curve is given by Qs = 2P - 50, where Qs is the quantity supplied, find the equilibrium price and quantity.

A. ₦50

Correct B. ₦75

C. ₦100

D. ₦125

Correct Answer: B

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