Practice post utme afe babalola university economics 2017 Past Questions

Question 1

A country's export supply function is given by Qs = 50 + 2P - 3Y, where Qs is the quantity supplied, P is the price, and Y is the income. If the price is 80 and the income is 300, what is the quantity supplied?

A. 120

B. 130

C. 140

D. 150

Question 2

A firm's production function is given by \( Q = 2L^{0.5}K^{0.5} \), where ( Q ) is the output, ( L ) is the labor and ( K ) is the capital. If the firm uses 100 units of labor and 400 units of capital, find the output.

A. \( Q = 400 \)

B. \( Q = 800 \)

C. \( Q = 1600 \)

D. \( Q = 3200 \)

Question 3

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?

A. (10, 20)

B. (15, 15)

C. (20, 10)

D. (25, 5)

Question 4

Consider a country with a GDP of ₦1.2 trillion and a GNP of ₦1.3 trillion. If the net factor income from abroad is ₦50 billion, what is the value of the country's net domestic product?

A. ₦1.25 trillion

B. ₦1.3 trillion

C. ₦1.35 trillion

D. ₦1.4 trillion

Question 5

A government's budget constraint is given by B = T + M. If the government's tax revenue is ₦50 billion and its money supply is ₦20 billion, what is the government's budget deficit?

A. ₦30 billion

B. ₦35 billion

C. ₦40 billion

D. ₦45 billion

Question 6

The production function for a firm 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. If the firm wants to increase its output by 20% while keeping labor cons\tant, what percentage increase in capital is required?

A. 10%

B. 20%

C. 30%

D. 40%

Question 7

A firm faces the following demand curve: Q = 100 - 2P. If the firm's marginal \cost is ₦20, what is the optimal price to charge?

A. ₦40

B. ₦30

C. ₦50

D. ₦60

Question 8

A firm's demand function is given by Q = 100 - 2P. If the firm's supply function is given by Q = 2P - 10, what is the firm's equilibrium price?

A. ₦20

B. ₦25

C. ₦30

D. ₦35

Question 9

A firm's \cost function is given by C(x) = 3x^2 + 2x + 1, where x is the number of units produced. If the firm's revenue function is R(x) = 2x^2 + 5x + 1, find the value of x that minimizes \cost.

A. 1

B. 2

C. 3

D. 4

Question 10

A country's GDP is ₦100 billion, its imports are ₦20 billion and its exports are ₦30 billion. Find the country's balance of trade.

A. ₦10 billion

B. ₦20 billion

C. ₦30 billion

D. ₦40 billion

Question 11

A firm's production function is given by Q = 2L + 3K. If the firm's marginal product of labor is 2 and the wage rate is ₦20, what is the optimal level of labor to hire?

A. 5 units

B. 10 units

C. 15 units

D. 20 units

Question 12

A country's import demand function is given by Qd = 100 - 2P + 5Y, where Qd is the quantity demanded, P is the price, and Y is the income. If the price is 60 and the income is 200, what is the quantity demanded?

A. 40

B. 50

C. 60

D. 70

Question 13

A firm's \cost function is given by C(x) = 2x^2 + 10x + 5. If the firm's revenue function is given by R(x) = 3x^2 - 2x + 1, what is the firm's profit-maximizing output level?

A. x = 1

B. x = 2

C. x = 3

D. x = 4

Question 14

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

A. ₦10 trillion

B. ₦20 trillion

C. ₦30 trillion

D. ₦40 trillion

Question 15

A firm's production function is given by \( Q = 2L^{0.5}K^{0.5} \), where ( Q ) is the output, ( L ) is the labor and ( K ) is the capital. If the firm uses 100 units of labor and 400 units of capital, find the marginal product of labor.

A. \( MP_L = 0.5 \)

B. \( MP_L = 1 \)

C. \( MP_L = 2 \)

D. \( MP_L = 4 \)

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