Practice Post UTME UNIBEN economics 2021 Past Questions

Question 1

The government of a country imposes a tax on imported goods to raise revenue. If the tax is increased by 20%, what will be the new tax rate if the original tax rate was 15%?

A. 18%

B. 20%

Correct C. 22%

D. 25%

Correct Answer: C

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Question 2

A firm's total revenue is given by the equation \( TR = 100x - 2x^2 \), where ( x ) is the number of units sold. If the firm sells 20 units, what is the total revenue?

A. ₦1800

Correct B. ₦2000

C. ₦2200

D. ₦2400

Correct Answer: B

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Question 3

A country's inflation rate is 5% per annum. If the price of a commodity is ₦1000 today, what will be the price of the commodity after 2 years?

A. ₦1100

B. ₦1200

Correct C. ₦1300

D. ₦1400

Correct Answer: C

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Question 4

A firm's demand function is given by the equation \( Q = 100 - 2P \), where ( Q ) is the quantity demanded and ( P ) is the price. If the price is ₦50, what is the quantity demanded?

A. 20

Correct B. 30

C. 40

D. 50

Correct Answer: B

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Question 5

A country's government budget is given by the equation \( B = T + G \), where ( B ) is the budget, ( T ) is the tax revenue, and ( G ) is the government exp\enditure. If the tax revenue is ₦1000 and the government exp\enditure is ₦500, what is the budget?

A. ₦1000

Correct B. ₦1500

C. ₦2000

D. ₦2500

Correct Answer: B

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Question 6

The demand for a product 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, what is the percentage change in quantity demanded when the price increases by 10%?

Correct A. 5%

B. 10%

C. 15%

D. 20%

Correct Answer: A

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Question 7

A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production functions are given by X = 2L + 3K and Y = 3L + 2K. If the firm has 10 units of labor and 8 units of capital, what is the maximum value of the objective function Z = 2X + 3Y?

A. 50

B. 60

Correct C. 70

D. 80

Correct Answer: C

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Question 8

The Central Bank of Nigeria (CBN) uses the following monetary policy instruments to control inflation: reserve requirements, open market operations, and interest rates. Which of the following is NOT a direct effect of an increase in the reserve requirement ratio?

A. Reduced money supply

Correct B. Increased interest rates

C. Increased reserve requirement ratio

D. Reduced inflation

Correct Answer: B

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Question 9

A firm's \cost function is given by C = 100 + 2Q + 0.5Q^2, where Q is the quantity produced. If the firm produces 20 units, what is the total \cost?

A. 150

B. 200

Correct C. 250

D. 300

Correct Answer: C

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Question 10

The Nigerian government has implemented a policy to increase the production of rice by providing subsidies to farmers. If the demand for rice is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price, and the supply of rice is given by the equation Qs = 2P - 10, what is the equilibrium price and quantity?

A. Price = 20, Quantity = 30

Correct B. Price = 30, Quantity = 40

C. Price = 40, Quantity = 50

D. Price = 50, Quantity = 60

Correct Answer: B

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Question 11

A firm faces a downward-sloping demand curve for its product. If the firm increases its price, what will happen to its total revenue?

A. Total revenue will increase

Correct B. Total revenue will decrease

C. Total revenue will remain the same

D. Total revenue will increase at first, then decrease

Correct Answer: B

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Question 12

A consumer has a budget of ₦1000 and faces the following prices for two goods: good X \costs ₦200 and good Y \costs ₦300. If the consumer buys 2 units of good X, how many units of good Y can the consumer buy?

A. 2 units

B. 3 units

Correct C. 4 units

D. 5 units

Correct Answer: C

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Question 13

A country's balance of payments account shows a trade deficit of ₦100 billion. If the country's exchange rate is ₦200 per dollar, what is the equivalent trade deficit in dollars?

A. ₦500 billion

B. ₦750 billion

C. ₦1000 billion

Correct D. ₦1250 billion

Correct Answer: D

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Question 14

A firm's \cost function is given by C(x) = 2x^2 + 3x + 1. If the firm produces 5 units of output, what is the total \cost?

A. ₦150

B. ₦200

Correct C. ₦250

D. ₦300

Correct Answer: C

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Question 15

A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer has a budget of ₦1000 and the prices of x and y are ₦200 and ₦300 respectively, what is the consumer's optimal bundle?

Correct A. x = 2, y = 3

B. x = 3, y = 2

C. x = 4, y = 1

D. x = 1, y = 4

Correct Answer: A

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Question 16

Agricultural mechanization in Nigeria has led to increased crop yields and reduced labor \costs. However, it has also resulted in the displacement of small-scale farmers. What is the most likely consequence of this displacement on the rural economy?

Correct A. Increased poverty among rural households

B. Reduced food prices and increased food security

C. Increased migration of rural workers to urban areas

D. Improved rural infrastructure and services

Correct Answer: A

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Question 17

A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm produces 20 units, what is the total \cost?

A. ₦250

B. ₦300

Correct C. ₦350

D. ₦400

Correct Answer: C

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Question 18

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

A. (10,20)

Correct B. (15,15)

C. (20,10)

D. (25,5)

Correct Answer: B

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Question 19

A firm's demand function is given by Q = 100 - 2P. If the firm's revenue function is given by R(P) = 200P, what is the firm's profit-maximizing price?

A. ₦20

Correct B. ₦30

C. ₦40

D. ₦50

Correct Answer: B

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Question 20

A government's budget constraint is given by B = T + I, where B is the budget, T is the tax revenue, and I is the interest payment. If the government's tax revenue is ₦100 and the interest payment is ₦50, what is the government's budget?

A. ₦150

Correct B. ₦200

C. ₦250

D. ₦300

Correct Answer: B

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Question 21

The demand for a product 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, what is the percentage change in quantity demanded when the price increases by 10%?

A. 5%

Correct B. 10%

C. 15%

D. 20%

Correct Answer: B

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Question 22

A firm produces two goods, A and B. The production function for good A is given by Q_A = 10L + 5K, where L is labor and K is capital. The production function for good B is given by Q_B = 8L + 3K. If the firm has 100 units of labor and 50 units of capital, what is the total output of the firm?

A. 500

B. 600

Correct C. 700

D. 800

Correct Answer: C

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Question 23

A government imposes a tax on a firm's output. The firm's supply function is given by Q = 100 + 2P, where Q is the quantity supplied and P is the price. If the tax is 10, what is the new supply function?

Correct A. Q = 90 + 2P

B. Q = 100 + 2P

C. Q = 110 + 2P

D. Q = 120 + 2P

Correct Answer: A

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Question 24

A firm has a \cost function given by C = 100 + 2Q, where C is the \cost and Q is the quantity produced. If the firm produces 50 units, what is the total \cost?

A. 150

Correct B. 200

C. 250

D. 300

Correct Answer: B

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Question 25

A government has a budget constraint given by B = 1000 - 2T, where B is the budget and T is the tax revenue. If the government collects 500 units of tax revenue, what is the new budget?

A. 900

Correct B. 1000

C. 1100

D. 1200

Correct Answer: B

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