Practice Post UTME UNIPORT economics 2024 Past Questions

Question 1

Consider a country with a GDP of ₦10 trillion and a GNP of ₦12 trillion. If the country's population is 200 million, calculate the per capita GDP.

A. ₦50,000

Correct B. ₦60,000

C. ₦70,000

D. ₦80,000

Correct Answer: B

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Question 2

A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm increases labor from 4 units to 9 units, and capital from 9 units to 16 units, calculate the percentage change in output.

A. 10%

B. 20%

Correct C. 30%

D. 40%

Correct Answer: C

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Question 3

A country's balance of payments account shows a trade deficit of ₦500 billion and a current account deficit of ₦700 billion. If the country's GDP is ₦10 trillion, calculate the percentage of GDP accounted for by the current account deficit.

A. 5%

Correct B. 7%

C. 10%

D. 12%

Correct Answer: B

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Question 4

A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's supply function is given by Q = 2P - 50, where Q is quantity supplied and P is price, calculate the equilibrium price and quantity.

A. Price: ₦20, Quantity: 50

B. Price: ₦30, Quantity: 75

Correct C. Price: ₦40, Quantity: 100

D. Price: ₦50, Quantity: 125

Correct Answer: C

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Question 5

A country's economic growth rate is given by the equation Y = 2Y0\( 1 + g \)^t, where Y is the current GDP, Y0 is the initial GDP, g is the growth rate, and t is time. If the country's initial GDP is ₦10 trillion, the growth rate is 5%, and time is 10 years, calculate the current GDP.

A. ₦20 trillion

B. ₦25 trillion

Correct C. ₦30 trillion

D. ₦35 trillion

Correct Answer: C

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Question 6

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input levels are L = 16 and K = 9, what is the marginal product of labor (MPL) at this point?

A. 1

Correct B. 2

C. 3

D. 4

Correct Answer: B

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Question 7

The government of Nigeria has introduced a new tax policy aimed at reducing income inequality. The policy involves a progressive tax system where the tax rate increases as income increases. If the tax rate is 10% for income up to ₦100,000, 20% for income between ₦100,001 and ₦200,000, and 30% for income above ₦200,000, what is the total tax paid by a person with an income of ₦250,000?

A. ₦30,000

B. ₦40,000

Correct C. ₦50,000

D. ₦60,000

Correct Answer: C

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Question 8

A country's GDP can be calculated u\sing the formula: 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 GDP is ₦10 trillion, consumption is ₦3 trillion, investment is ₦1 trillion, government sp\ending is ₦2 trillion, exports are ₦4 trillion, and imports are ₦2 trillion, what is the value of the country's net exports?

A. ₦1 trillion

B. ₦2 trillion

C. ₦3 trillion

Correct D. ₦4 trillion

Correct Answer: D

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Question 9

A firm's production function is given by Q = 3L^0.7K^0.3. If the firm's current input levels are L = 27 and K = 8, what is the marginal product of labor (MPL) at this point?

A. 2

Correct B. 3

C. 4

D. 5

Correct Answer: B

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Question 10

The government of Nigeria has introduced a new policy aimed at increa\sing agricultural production. The policy involves providing subsidies to farmers who use modern farming techniques. If the subsidy is ₦10,000 per hectare and the average farm size is 5 hectares, what is the total subsidy paid to a farmer who uses modern farming techniques on 10 hectares of land?

A. ₦50,000

B. ₦60,000

C. ₦70,000

Correct D. ₦80,000

Correct Answer: D

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Question 11

Consider a production function given by \( Q = 100K^{\frac{1}{3}}L^{\frac{2}{3}} \), where Q is output, K is capital, and L is labor. If the marginal product of labor is 20, and the price of labor is ₦200 per unit, what is the optimal level of labor to maximize profits?

A. 50 units

Correct B. 75 units

C. 100 units

D. 125 units

Correct Answer: B

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Question 12

A country's GDP is ₦1.2 trillion, and its GNP is ₦1.5 trillion. What is the net factor income from abroad?

A. ₦300 billion

Correct B. ₦400 billion

C. ₦500 billion

D. ₦600 billion

Correct Answer: B

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Question 13

A firm's production function is given by \( Q = 2K^{\frac{1}{2}}L^{\frac{1}{2}} \). If the price of capital is ₦500 per unit, and the price of labor is ₦200 per unit, what is the optimal level of capital to maximize profits?

A. 10 units

B. 20 units

Correct C. 30 units

D. 40 units

Correct Answer: C

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Question 14

A country's trade balance is in deficit by ₦500 billion. If the country's exports are ₦1.2 trillion, and its imports are ₦1.7 trillion, what is the value of the country's net foreign assets?

A. ₦1.2 trillion

B. ₦1.5 trillion

C. ₦1.8 trillion

Correct D. ₦2.0 trillion

Correct Answer: D

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Question 15

A firm's production function is given by \( Q = 3K^{\frac{2}{3}}L^{\frac{1}{3}} \). If the price of capital is ₦300 per unit, and the price of labor is ₦150 per unit, what is the optimal level of labor to maximize profits?

A. 20 units

Correct B. 30 units

C. 40 units

D. 50 units

Correct Answer: B

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Question 16

The concept of 'dualism' in the context of agriculture and industrialization in Nigeria refers to the coexistence of two distinct economic systems, one based on traditional farming practices and the other on modern industrial methods. Which of the following best describes the implications of this dualism on Nigeria's economic development?

Correct A. The dualism leads to a dichotomy between the modern and traditional sectors, hindering economic growth and development.

B. The dualism creates opportunities for innovation and entrepreneurship, driving economic growth and development.

C. The dualism leads to a concentration of wealth and power in the hands of a few individuals, exacerbating income inequality.

D. The dualism has no significant impact on Nigeria's economic development.

Correct Answer: A

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Question 17

A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm's labor input increases by 20% and the capital input remains cons\tant, what is the percentage change in the quantity produced?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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Question 18

The Central Bank of Nigeria (CBN) has implemented a monetary policy aimed at reducing inflation. The policy involves increa\sing the reserve requirement for commercial banks. Which of the following is a likely consequence of this policy?

Correct A. A decrease in the money supply, leading to lower inflation.

B. An increase in the money supply, leading to higher inflation.

C. No change in the money supply, as the reserve requirement is already at its minimum.

D. A decrease in the interest rate, leading to higher inflation.

Correct Answer: A

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Question 19

A consumer's indifference curve is given by the equation u(x, y) = 2x + 3y, where u is the utility function, x is the quantity of good X, and y is the quantity of good Y. If the consumer's income is ₦1000 and the prices of good X and good Y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle?

A. x = 100, y = 150

Correct B. x = 120, y = 100

C. x = 150, y = 100

D. x = 100, y = 120

Correct Answer: B

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Question 20

The following diagram shows the supply and demand curves for a commodity. If the price of the commodity is initially at P1, what is the likely effect of a decrease in the price to P2?

A. An increase in the quantity supplied and a decrease in the quantity demanded.

Correct B. A decrease in the quantity supplied and an increase in the quantity demanded.

C. No change in the quantity supplied and no change in the quantity demanded.

D. An increase in the quantity demanded and a decrease in the quantity supplied.

Correct Answer: B

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Question 21

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, assuming the monopolist sells the output at the market price.

Correct A. Q = 50, P = 75

B. Q = 75, P = 50

C. Q = 25, P = 100

D. Q = 100, P = 0

Correct Answer: A

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Question 22

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

Correct A. x = 3, y = 2

B. x = 2, y = 3

C. x = 1, y = 4

D. x = 4, y = 1

Correct Answer: A

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Question 23

A firm has a production function Q = 2L^2 + 5K, where L is labor and K is capital. The firm's \cost function is C(L, K) = 2L + 3K. Find the firm's \cost-minimizing input bundle of L and K.

Correct A. L = 2, K = 1

B. L = 1, K = 2

C. L = 3, K = 0

D. L = 0, K = 3

Correct Answer: A

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Question 24

A perfectly competitive market has a demand curve given by Q = 100 - 2P and a supply curve given by Q = 2P. Find the equilibrium price and quantity.

Correct A. P = 25, Q = 50

B. P = 50, Q = 25

C. P = 75, Q = 100

D. P = 100, Q = 0

Correct Answer: A

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Question 25

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, assuming the monopolist sells the output at the market price.

Correct A. Q = 50, P = 75

B. Q = 75, P = 50

C. Q = 25, P = 100

D. Q = 100, P = 0

Correct Answer: A

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