Practice Post UTME WELLSPRING UNIVERSITY economics 2019 Past Questions

Question 1

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 labor and capital are increased by 20% and 15% respectively, what is the percentage change in output?

A. 10%

B. 12%

Correct C. 15%

D. 18%

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 2

A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. 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?

A. x = 40, y = 20

Correct B. x = 50, y = 15

C. x = 60, y = 10

D. x = 70, y = 5

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 3

A perfectly competitive market has a supply curve given by Q = 2P - 10. If the demand curve is given by Q = 100 - 2P, what is the equilibrium price and quantity?

A. P = 20, Q = 30

B. P = 30, Q = 40

Correct C. P = 40, Q = 50

D. P = 50, Q = 60

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 4

A monopolist has a \cost function given by C = 2Q^2 + 10Q. If the demand function is given by P = 100 - Q, what is the monopolist's profit-maximizing quantity?

A. Q = 20

B. Q = 30

Correct C. Q = 40

D. Q = 50

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 5

A country's GDP is given by the equation Y = C + I + G, where Y is GDP, C is consumption, I is investment, and G is government sp\ending. If the country's consumption is ₦500 billion, investment is ₦200 billion, and government sp\ending is ₦300 billion, what is the country's GDP?

A. ₦1000 billion

B. ₦1100 billion

Correct C. ₦1200 billion

D. ₦1300 billion

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 6

Calculate the value of the definite integral $ int_{0}^{2} \( 2x^2 + 3x - 4 \ $ dx ) u\sing the power rule of integration.

Correct A. \frac{8}{3}

B. \frac{16}{3}

C. \frac{20}{3}

D. \frac{24}{3}

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 7

A firm's production function is given by $ Q = 2L^{0.5}K^{0.5} $. If the firm's output is 16 units when the labor input is 4 units and the capital input is 4 units, what is the marginal product of labor?

A. 2

B. 4

Correct C. 8

D. 16

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 8

A consumer's utility function is given by $ U = 2x + 3y $. If the consumer's income is ₦100 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of x and y?

Correct A. x = 10, y = 5

B. x = 5, y = 10

C. x = 15, y = 3

D. x = 3, y = 15

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 9

A firm's \cost function is given by $ C = 2L + 3K $. If the firm's output is 16 units when the labor input is 4 units and the capital input is 4 units, what is the firm's total \cost?

A. ₦40

B. ₦60

Correct C. ₦80

D. ₦100

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 10

A consumer's budget constraint is given by $ 2x + 3y = 100 $. If the consumer's utility function is $ U = 2x + 3y $, what is the consumer's optimal bundle of x and y?

A. x = 10, y = 20

B. x = 20, y = 10

Correct C. x = 15, y = 15

D. x = 25, y = 5

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 11

Consider a country with a GDP of ₦10 trillion and a population of 200 million. If the average GDP per capita is ₦50,000, what is the implied GDP deflator?

A. 100

Correct B. 150

C. 200

D. 250

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 12

A firm's production function is given by Q = 2L^$ 1/2 $K^$ 1/2 $. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?

A. 5%

B. 10%

Correct C. 15%

D. 20%

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 13

Consider a market with the following demand and supply functions: D(p) = 100 - 2p and S(p) = 50 + 3p. What is the equilibrium price and quantity?

A. p = 20, Q = 60

Correct B. p = 30, Q = 80

C. p = 40, Q = 100

D. p = 50, Q = 120

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 14

A country's balance of payments account shows a trade deficit of ₦500 billion and a capital account surplus of ₦200 billion. What is the overall balance of payments position?

A. ₦300 billion deficit

Correct B. ₦200 billion surplus

C. ₦500 billion deficit

D. ₦700 billion surplus

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 15

Consider a firm that produces two goods, X and Y, u\sing two inputs, labor and capital. The production functions are given by X = 2L^$ 1/2 $K^$ 1/2 $ and Y = 3L^$ 1/2 $K^$ 1/2 $. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output of good X?

A. 5%

B. 10%

Correct C. 15%

D. 20%

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 16

The government of Nigeria has introduced a new policy to increase agricultural production. The policy involves providing subsidies to farmers who use modern farming techniques. However, the policy has been criticized for being too expensive and for favoring large-scale farmers at the expense of small-scale farmers. What is the likely effect of this policy on the income of small-scale farmers?

A. Their income will increase due to the subsidies provided

Correct B. Their income will decrease due to the increased competition from large-scale farmers

C. Their income will remain the same as they will not be affected by the policy

D. Their income will increase due to the increased demand for their products

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 17

A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. What is the monopolist's profit-maximizing price?

A. 20

B. 30

Correct C. 40

D. 50

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 18

A consumer has the following utility function: U(x, y) = 2x + 3y. The prices of x and y are $2 and $3 respectively. The consumer's income is $10. What is the consumer's optimal bundle?

Correct A. x = 2, y = 1

B. x = 3, y = 2

C. x = 4, y = 3

D. x = 5, y = 4

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 19

The government of Nigeria has introduced a new policy to increase industrial production. The policy involves providing subsidies to industries that use modern techno\logy. However, the policy has been criticized for being too expensive and for favoring large-scale industries at the expense of small-scale industries. What is the likely effect of this policy on the income of small-scale industries?

A. Their income will increase due to the subsidies provided

Correct B. Their income will decrease due to the increased competition from large-scale industries

C. Their income will remain the same as they will not be affected by the policy

D. Their income will increase due to the increased demand for their products

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 20

A firm has a production function Q = 2L^0.5K^0.5. The prices of labor and capital are $10 and $20 respectively. The firm's revenue is $1000. What is the firm's optimal input mix?

Correct A. L = 10, K = 5

B. L = 5, K = 10

C. L = 15, K = 3

D. L = 3, K = 15

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 21

A consumer has the following utility function: U(x, y) = 2x + 3y. The prices of x and y are $2 and $3 respectively. The consumer's income is $10. What is the consumer's optimal bundle?

Correct A. x = 2, y = 1

B. x = 3, y = 2

C. x = 4, y = 3

D. x = 5, y = 4

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 22

The government of Nigeria has introduced a new policy to increase agricultural production. The policy involves providing subsidies to farmers who use modern farming techniques. However, the policy has been criticized for being too expensive and for favoring large-scale farmers at the expense of small-scale farmers. What is the likely effect of this policy on the income of small-scale farmers?

A. Their income will increase due to the subsidies provided

Correct B. Their income will decrease due to the increased competition from large-scale farmers

C. Their income will remain the same as they will not be affected by the policy

D. Their income will increase due to the increased demand for their products

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 23

A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. What is the monopolist's profit-maximizing price?

A. 20

B. 30

Correct C. 40

D. 50

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 24

The government of Nigeria has introduced a new tax policy aimed at increa\sing revenue from the agricultural sector. The policy requires farmers to pay a 10% tax on their annual income. If a farmer's annual income is ₦500,000, how much tax will they pay?

Correct A. ₦50,000

B. ₦40,000

C. ₦30,000

D. ₦20,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 25

A consumer is faced with the following utility function: U(x,y) = 2x + 3y. If the consumer's income is ₦100,000 and the prices of x and y are ₦20 and ₦30 respectively, what is the optimal bundle of x and y?

Correct A. (5,3)

B. (4,4)

C. (3,5)

D. (2,6)

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

POST UTME WELLSPRING UNIVERSITY 2019 Economics | Objective

Master the Exam!

Help others prepare! Share this practice hub: