Practice Post UTME UNIPORT economics 2020 Past Questions

Question 1

Consider a country with a GDP of ₦10 trillion and a GNP of ₦11 trillion. If the country's net factor income from abroad is ₦500 billion, what is the value of its net domestic product?

Correct A. ₦9.5 trillion

B. ₦10.5 trillion

C. ₦11.5 trillion

D. ₦12.5 trillion

Correct Answer: A

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Question 2

A firm's demand function is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price is ₦20, what is the quantity demanded?

A. 50 units

Correct B. 60 units

C. 70 units

D. 80 units

Correct Answer: B

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Question 3

A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦100 and the prices of the two goods are ₦20 and ₦30 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 4

Consider a country with a population of 100 million and a GDP of ₦10 trillion. If the country's GDP per capita is ₦100,000, what is the value of its GDP?

Correct A. ₦10 trillion

B. ₦20 trillion

C. ₦30 trillion

D. ₦40 trillion

Correct Answer: A

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Question 5

A firm's supply function is given by Qs = 2P + 50, where Qs is the quantity supplied and P is the price. If the price is ₦20, what is the quantity supplied?

A. 70 units

Correct B. 80 units

C. 90 units

D. 100 units

Correct Answer: B

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Question 6

Consider a firm operating in a perfectly competitive market with a production function given by Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, and it is currently producing 4 units of output, what is the firm's current total \cost?

A. ₦400

Correct B. ₦800

C. ₦1200

D. ₦1600

Correct Answer: B

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Question 7

Suppose 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 supply of the product is given by the equation Qs = 2P - 20, where Qs is the quantity supplied, 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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Question 8

A country's balance of payments is given by the 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?

A. ₦20 billion surplus

Correct B. ₦20 billion deficit

C. ₦40 billion surplus

D. ₦40 billion deficit

Correct Answer: B

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Question 9

Consider a firm operating in a perfectly competitive market with a production function given by Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, and it is currently producing 4 units of output, what is the firm's current marginal \cost?

A. ₦5

Correct B. ₦10

C. ₦15

D. ₦20

Correct Answer: B

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Question 10

Suppose 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 supply of the product is given by the equation Qs = 2P - 20, where Qs is the quantity supplied, what is the equilibrium quantity?

A. 20

B. 30

Correct C. 40

D. 50

Correct Answer: C

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Question 11

The concept of returns to scale is crucial in unders\tanding the production function of a firm. Which of the following statements best describes the law of diminishing returns?

Correct A. As the quantity of a variable input increases, the marginal product of that input will eventually decrease.

B. The law of diminishing returns is a concept that applies only to perfect competition.

C. The law of diminishing returns is a concept that applies only to monopolistic competition.

D. The law of diminishing returns is a concept that applies only to a firm's short-run production function.

Correct Answer: A

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Question 12

A firm's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the units of labor, and K is the units of capital. What is the marginal product of labor?

A. 25L^{-0.5}K^{0.5}

Correct B. 50L^{-0.5}K^{0.5}

C. 100L^{-0.5}K^{0.5}

D. 200L^{-0.5}K^{0.5}

Correct Answer: B

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Question 13

The demand for a product is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the product is given by Qs = 2P + 10, where Qs is the quantity supplied. What is the equilibrium price?

A. ₦20

Correct B. ₦30

C. ₦40

D. ₦50

Correct Answer: B

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Question 14

A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. The budget constraint is given by 2x + 3y = ₦100. What is the consumer's optimal bundle?

A. x = 20, y = 10

Correct B. x = 30, y = 20

C. x = 40, y = 30

D. x = 50, y = 40

Correct Answer: B

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Question 15

A firm's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the units of labor, and K is the units of capital. What is the elasticity of supply?

A. 0.5

Correct B. 1

C. 1.5

D. 2

Correct Answer: B

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Question 16

A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor and H is capital. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, find the \cost-minimizing combination of labor and capital if the firm produces 100 units of output.

Correct A. L = 100, H = 50

B. L = 50, H = 100

C. L = 200, H = 100

D. L = 100, H = 200

Correct Answer: A

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Question 17

A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are ₦50 and ₦75 respectively, and the consumer's income is ₦1500, find the consumer's optimal consumption bundle.

Correct A. x = 20, y = 10

B. x = 10, y = 20

C. x = 30, y = 15

D. x = 15, y = 30

Correct Answer: A

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Question 18

A firm's demand function for a product is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal \cost is ₦50 per unit, find the profit-maximizing price and quantity.

Correct A. P = ₦50, Q = 75

B. P = ₦75, Q = 50

C. P = ₦25, Q = 100

D. P = ₦100, Q = 0

Correct Answer: A

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Question 19

A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor and H is capital. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, find the \cost-minimizing combination of labor and capital if the firm produces 100 units of output.

Correct A. L = 100, H = 50

B. L = 50, H = 100

C. L = 200, H = 100

D. L = 100, H = 200

Correct Answer: A

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Question 20

A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are ₦50 and ₦75 respectively, and the consumer's income is ₦1500, find the consumer's optimal consumption bundle.

Correct A. x = 20, y = 10

B. x = 10, y = 20

C. x = 30, y = 15

D. x = 15, y = 30

Correct Answer: A

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Question 21

A firm's production function is given by Q = 100L^0.5K^0.5. If the price of labor (L) increases by 20% and the price of capital (K) remains cons\tant, what is the new value of the marginal product of labor (MPL)?

A. 30

B. 40

Correct C. 50

D. 60

Correct Answer: C

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Question 22

The demand for a product is given by 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 if the price increases by 10%?

A. 5%

Correct B. 10%

C. 15%

D. 20%

Correct Answer: B

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Question 23

Agricultural production in Nigeria is characterized by low productivity and limited access to credit. Which of the following policies would most likely increase agricultural productivity?

A. Providing subsidies to farmers

Correct B. Increa\sing access to credit

C. Implementing a price support program

D. Reducing the size of farms

Correct Answer: B

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Question 24

The government of Nigeria has implemented a policy to increase economic growth through industrialization. Which of the following sectors would most likely benefit from this policy?

A. Agriculture

Correct B. Manufacturing

C. Services

D. Construction

Correct Answer: B

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Question 25

The central bank of Nigeria has increased the reserve requirement for commercial banks from 10% to 15%. What is the effect of this policy on the money supply?

A. Increase

Correct B. Decrease

C. No change

D. Uncertain

Correct Answer: B

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