Practice post utme afe babalola university economics 2022 Past Questions

Question 1

A consumer's indifference curve is given by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, find the consumer's optimal bundle of x and y.

Correct A. (100, 200)

B. (200, 100)

C. (50, 300)

D. (300, 50)

Correct Answer: A

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Question 2

A country's GDP is ₦1,500,000,000,000. If the country's population is 200 million and the average income is ₦7,500, find the country's GDP per capita.

Correct A. ₦30,000

B. ₦35,000

C. ₦40,000

D. ₦45,000

Correct Answer: A

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Question 3

A firm's production function is given by \( Q = 2L^{0.5}K^{0.5} \). If the firm's output is 100 units and the price of labor is ₦10 per unit, find the firm's optimal level of capital.

A. ₦500

B. ₦750

Correct C. ₦1000

D. ₦1250

Correct Answer: C

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Question 4

A country's trade balance is given by the equation \( TB = X - M \), where X is the country's exports and M is the country's imports. If the country's exports are ₦1,500,000,000,000 and its imports are ₦1,200,000,000,000, find the country's trade balance.

Correct A. ₦300,000,000,000

B. ₦400,000,000,000

C. ₦500,000,000,000

D. ₦600,000,000,000

Correct Answer: A

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Question 5

A government's budget is given by the equation \( B = T + I \), where B is the government's budget, T is the government's tax revenue, and I is the government's interest payment. If the government's tax revenue is ₦1,000,000,000,000 and its interest payment is ₦500,000,000,000, find the government's budget.

Correct A. ₦1,500,000,000,000

B. ₦1,600,000,000,000

C. ₦1,700,000,000,000

D. ₦1,800,000,000,000

Correct Answer: A

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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 = 4 and K = 9, what is the marginal product of labor (MPL) at these input levels?

A. 1

Correct B. 2

C. 3

D. 4

Correct Answer: B

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Question 7

A monopolist faces a demand curve given by P = 100 - 2Q. The monopolist's marginal \cost (MC) is given by MC = 10 + 2Q. What is the monopolist's profit-maximizing quantity?

A. 10

B. 20

Correct C. 30

D. 40

Correct Answer: C

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Question 8

A country's GDP is given by the equation Y = C + I + G + \( X - M \). If the country's current GDP is 100 billion, consumption (C) is 40 billion, investment (I) is 20 billion, government sp\ending (G) is 30 billion, exports (X) are 25 billion, and imports (M) are 15 billion, what is the country's current trade balance?

A. 5 billion

B. 10 billion

Correct C. 15 billion

D. 20 billion

Correct Answer: C

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Question 9

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input levels are L = 4 and K = 9, what is the firm's current output?

A. 8

B. 10

Correct C. 12

D. 14

Correct Answer: C

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Question 10

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

A. 80

B. 90

Correct C. 100

D. 110

Correct Answer: C

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Question 11

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 0.5, find the percentage change in quantity demanded when the price increases by 10%.

Correct A. 5%

B. 10%

C. 15%

D. 20%

Correct Answer: A

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Question 12

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, find the consumer's optimal bundle of goods.

Correct A. x = 100, y = 50

B. x = 50, y = 100

C. x = 200, y = 0

D. x = 0, y = 200

Correct Answer: A

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Question 13

The government of a country imposes a tax of ₦10 on every unit of a good. If the supply curve of the good is given by Qs = 100 + 2P, where Qs is the quantity supplied and P is the price, find the new supply curve after the tax is imposed.

Correct A. Qs = 90 + 2P

B. Qs = 110 + 2P

C. Qs = 100 + 4P

D. Qs = 90 + 4P

Correct Answer: A

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Question 14

A farmer has 100 hectares of land and can grow two crops: wheat and maize. The profit from growing wheat is ₦1000 per hectare, while the profit from growing maize is ₦800 per hectare. If the farmer can sell the crops at any time, find the optimal crop mix that maximizes profit.

A. Wheat: 50 hectares, Maize: 50 hectares

Correct B. Wheat: 75 hectares, Maize: 25 hectares

C. Wheat: 25 hectares, Maize: 75 hectares

D. Wheat: 0 hectares, Maize: 100 hectares

Correct Answer: B

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Question 15

The government of a country has a budget of ₦100 billion to sp\end on infrastructure development. If the government wants to sp\end at least ₦20 billion on roads and at least ₦15 billion on bridges, find the minimum amount that can be spent on other infrastructure projects.

Correct A. ₦65 billion

B. ₦70 billion

C. ₦75 billion

D. ₦80 billion

Correct Answer: A

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Question 16

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 0.5, find the percentage change in quantity demanded when the price increases by 10%.

A. 5%

Correct B. 10%

C. 15%

D. 20%

Correct Answer: B

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Question 17

A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production functions are given by QX = 2L^0.5K^0.5 and QY = L^0.5K^0.5. If the firm has 100 units of labor and 200 units of capital, find the maximum output of good X.

A. 20

B. 30

Correct C. 40

D. 50

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 the value of exports and M is the value of imports. If the value of exports is 100 and the value of imports is 80, find the balance of payments.

Correct A. 10

B. 20

C. 30

D. 40

Correct Answer: A

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Question 19

A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm has 100 units of labor and 200 units of capital, find the marginal product of labor.

A. 2

Correct B. 4

C. 6

D. 8

Correct Answer: B

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Question 20

A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is the consumption, I is the investment, G is the government sp\ending, X is the value of exports, and M is the value of imports. If the consumption is 100, the investment is 80, the government sp\ending is 60, the value of exports is 120, and the value of imports is 100, find the GDP.

A. 240

B. 260

Correct C. 280

D. 300

Correct Answer: C

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