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POST UTME UNIPORT 2017 Economics | Objective

Are you preparing for POST UTME UNIPORT exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2017 Economics (Objective) questions designed to simulate the real exam environment.

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Question 1

Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the price of the good is $10 and the firm's \cost function is C = 2L + 3K, what is the optimal level of output and input usage?

Correct A. $ Q = 100, L = 50, K = 50 $

B. $ Q = 50, L = 25, K = 25 $

C. $ Q = 200, L = 100, K = 100 $

D. $ Q = 150, L = 75, K = 75 $

Correct Answer: A

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Question 2

A consumer has a budget of $100 and faces the following prices for two goods: x = $10 and y = $20. The consumer's utility function is U = 2x + 3y. What is the optimal bundle of goods?

Correct A. $ x = 5, y = 3 $

B. $ x = 3, y = 5 $

C. $ x = 4, y = 4 $

D. $ x = 2, y = 6 $

Correct Answer: A

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Question 3

Consider a small open economy with a trade balance of $100 million and a current account deficit of $50 million. What is the value of the country's net foreign assets?

Correct A. ( $150 million )

B. ( $200 million )

C. ( $250 million )

D. ( $300 million )

Correct Answer: A

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Question 4

A firm faces a demand curve Q = 100 - 2P and a supply curve Q = 2P. What is the equilibrium price and quantity?

A. $ P = $20, Q = 60 $

B. $ P = $30, Q = 80 $

Correct C. $ P = $40, Q = 100 $

D. $ P = $50, Q = 120 $

Correct Answer: C

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Question 5

Consider a firm with a production function Q = 2L^0.5K^0.5. If the price of the good is $10 and the firm's \cost function is C = 2L + 3K, what is the optimal level of output and input usage?

Correct A. $ Q = 100, L = 50, K = 50 $

B. $ Q = 50, L = 25, K = 25 $

C. $ Q = 200, L = 100, K = 100 $

D. $ Q = 150, L = 75, K = 75 $

Correct Answer: A

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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 -2, what is the percentage change in quantity demanded when the price increases by 10%?

Correct A. -20%

B. -10%

C. 0%

D. 10%

Correct Answer: A

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Question 7

A consumer has a utility function U(x,y) = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?

Correct A. (20, 80)

B. (40, 60)

C. (60, 40)

D. (80, 20)

Correct Answer: A

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Question 8

A farmer in Nigeria produces two crops, maize and sorghum. The production function for maize is Qm = 100 - 2L, where Qm is the quantity of maize produced and L is the labor input. The production function for sorghum is Qs = 50 + 3L, where Qs is the quantity of sorghum produced and L is the labor input. If the farmer has 20 units of labor, what is the total output of the farm?

A. 1200

B. 1500

Correct C. 1800

D. 2000

Correct Answer: C

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Question 9

A country's balance of payments is given by the equation BOP = X - M, where BOP is the balance of payments, X is the value of exports, and M is the value of imports. If the value of exports is ₦1000 and the value of imports is ₦800, what is the balance of payments?

Correct A. ₦200

B. ₦400

C. ₦600

D. ₦800

Correct Answer: A

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Question 10

A government in Nigeria imposes a tax of ₦10 on every unit of a good. If the price of the good is ₦20 and the quantity demanded is 50 units, what is the total tax revenue?

A. ₦500

Correct B. ₦600

C. ₦700

D. ₦800

Correct Answer: B

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Question 11

Suppose the demand for a product is given by the inverse demand function $ p = 100 - 2q $, where (p) is the price and (q) is the quantity demanded. If the price elasticity of demand is defined as $ E_d = \frac{dq}{dp} cdot \frac{p}{q} $, calculate the price elasticity of demand at a price of ₦50.

Correct A. -0.5

B. 0.5

C. 1

D. 2

Correct Answer: A

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Question 12

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 balance of payments?

Correct A. ₦-100 billion

B. ₦100 billion

C. ₦500 billion

D. ₦600 billion

Correct Answer: A

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Question 13

Consider a firm that produces a product u\sing two inputs: labor and capital. The production function is given by $ Q = 10L^{0.5}K^{0.5} $, where (Q) is the quantity produced, (L) is the amount of labor used, and (K) is the amount of capital used. If the price of labor is ₦100 per hour and the price of capital is ₦200 per unit, and the firm uses 10 units of labor and 5 units of capital, what is the total \cost of production?

A. ₦5000

Correct B. ₦10000

C. ₦15000

D. ₦20000

Correct Answer: B

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Question 14

A government imposes a tax on a product, which increases the price of the product from ₦100 to ₦120. If the demand for the product is given by the inverse demand function $ p = 100 - 2q $, where (p) is the price and (q) is the quantity demanded, what is the new quantity demanded?

A. 20

Correct B. 30

C. 40

D. 50

Correct Answer: B

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Question 15

A firm is considering two investment projects, A and B. Project A requires an initial investment of ₦100,000 and is expected to generate a return of ₦120,000 per year for 5 years. Project B requires an initial investment of ₦150,000 and is expected to generate a return of ₦180,000 per year for 5 years. Which project has a higher net present value?

Correct A. Project A

B. Project B

C. Both projects have the same net present value

D. Neither project has a positive net present value

Correct Answer: A

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Question 16

Consider a country with a perfectly competitive market for wheat. The demand for wheat is given by the equation $ Q_d = 100 - 2P $ and the supply of wheat is given by the equation $ Q_s = 2P - 20 $. If the price of wheat is currently $2 per unit, what is the equilibrium quantity of wheat?

A. 40

Correct B. 60

C. 80

D. 100

Correct Answer: B

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Question 17

A firm's production function is given by $ Q = 2L^{0.5}K^{0.5} $, where ( L ) is labor and ( K ) is capital. If the firm has 100 units of labor and 200 units of capital, what is the maximum output?

A. 200

B. 400

Correct C. 600

D. 800

Correct Answer: C

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Question 18

A country's balance of payments is given by the equation $ BOP = X - M $, where ( X ) is exports and ( M ) is imports. If the country's exports are $100 billion and imports are $80 billion, what is the balance of payments?

Correct A. +20 billion

B. +10 billion

C. +5 billion

D. +1 billion

Correct Answer: A

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Question 19

A consumer's utility function is given by $ U = 2x + 3y $, where ( x ) is the quantity of good X and ( y ) is the quantity of good Y. If the consumer has a budget of $100 and the prices of good X and good Y are $2 and $3 respectively, what is the optimal bundle of goods?

A. (20, 20)

Correct B. (30, 10)

C. (40, 0)

D. (0, 50)

Correct Answer: B

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Question 20

A firm's demand function is given by $ Q = 100 - 2P $ and the supply function is given by $ Q = 2P - 20 $. If the price of the firm's product is currently $2, what is the equilibrium quantity?

A. 40

Correct B. 60

C. 80

D. 100

Correct Answer: B

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Question 21

Consider a consumer with a utility function U(x,y) = 2x + 3y - x^2 - y^2. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, find the optimal bundle of x and y u\sing the Lagrange method.

A. x = 20, y = 10

Correct B. x = 15, y = 15

C. x = 10, y = 20

D. x = 5, y = 25

Correct Answer: B

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Question 22

A firm produces two goods, x and y, u\sing two inputs, labor and capital. The production functions are given by x = 2L + 3K and y = L + 2K. If the prices of x and y are ₦5 and ₦3 respectively, and the wage rate and rental rate are ₦10 and ₦20 respectively, find the optimal input mix u\sing the Cobb-Douglas production function.

Correct A. L = 10, K = 5

B. L = 5, K = 10

C. L = 15, K = 3

D. L = 20, K = 2

Correct Answer: A

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Question 23

Consider a country with a GDP of ₦100 billion and a GNP of ₦120 billion. If the country's net factor income from abroad is ₦20 billion, find the country's national income u\sing the identity GNP = GDP + net factor income from abroad.

A. ₦140 billion

B. ₦160 billion

Correct C. ₦180 billion

D. ₦200 billion

Correct Answer: C

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Question 24

A government is considering a tax reform to reduce the tax rate from 20% to 15%. If the government's revenue from taxes is ₦50 billion, find the new tax revenue u\sing the tax formula: tax revenue = tax rate x tax base.

Correct A. ₦45 billion

B. ₦50 billion

C. ₦55 billion

D. ₦60 billion

Correct Answer: A

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Question 25

Consider a country with a population of 100 million and a per capita income of ₦50,000. If the country's GDP is ₦5 trillion, find the country's GDP per capita u\sing the identity GDP per capita = GDP / population.

Correct A. ₦50,000

B. ₦60,000

C. ₦70,000

D. ₦80,000

Correct Answer: A

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