Practice post utme christopher university economics 2021 Past Questions

Question 1

A firm's total revenue is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm's marginal revenue is 80 when x = 20, what is the firm's total revenue when x = 30?

A. ₦3,000

B. ₦3,500

Correct C. ₦4,000

D. ₦4,500

Correct Answer: C

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Question 2

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 - 100, what is the equilibrium price?

A. ₦20

Correct B. ₦30

C. ₦40

D. ₦50

Correct Answer: B

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Question 3

A firm's average \cost is given by the equation AC = 10 + 2x, where x is the number of units produced. If the firm produces 20 units, what is its average \cost?

A. ₦20

B. ₦30

Correct C. ₦40

D. ₦50

Correct Answer: C

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Question 4

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 - 100, what is the equilibrium quantity?

A. 10

Correct B. 20

C. 30

D. 40

Correct Answer: B

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Question 5

A firm's revenue function is given by the equation R(x) = 100x - 2x^2, where x is the number of units sold. If the firm sells 20 units, what is its revenue?

A. ₦2,000

B. ₦2,500

Correct C. ₦3,000

D. ₦3,500

Correct Answer: C

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Question 6

A firm's revenue function is given by R(x) = 100x - 2x^2. If the firm's marginal revenue function is MR(x) = 100 - 4x, find the value of x that maximizes revenue.

A. 25

Correct B. 50

C. 75

D. 100

Correct Answer: B

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Question 7

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

A. x = 2, y = 4

Correct B. x = 3, y = 3

C. x = 4, y = 2

D. x = 5, y = 1

Correct Answer: B

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Question 8

A government imposes a tax of ₦10 on every unit of a good. If the demand function for the good is given by Q = 100 - 2P and the supply function is given by Q = 2P - 10, find the equilibrium price and quantity.

A. P = 20, Q = 40

Correct B. P = 25, Q = 50

C. P = 30, Q = 60

D. P = 35, Q = 70

Correct Answer: B

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Question 9

A firm has a \cost function given by C(x) = 100 + 2x^2. If the firm's revenue function is R(x) = 100x - 2x^2, find the value of x that minimizes the firm's average \cost.

A. x = 5

Correct B. x = 10

C. x = 15

D. x = 20

Correct Answer: B

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Question 10

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

Correct A. x = 3, y = 3

B. x = 4, y = 2

C. x = 5, y = 1

D. x = 6, y = 0

Correct Answer: A

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Question 11

Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) curve intersects its marginal \cost (MC) curve at point E, where MR = MC, and the firm's average total \cost (ATC) curve is U-shaped, what is the likely effect on the firm's profit-maximizing output level if the demand curve shifts to the left?

A. The firm will increase its profit-maximizing output level.

Correct B. The firm will decrease its profit-maximizing output level.

C. The firm's profit-maximizing output level will remain unchanged.

D. The firm will experience a decrease in profit-maximizing output level, but the exact change cannot be determined.

Correct Answer: B

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Question 12

A country's balance of payments (BOP) account is in equilibrium when its current account (CA) is equal to its capital account (KA). If the country experiences a trade deficit, what is the likely effect on its BOP equilibrium?

Correct A. The trade deficit will lead to a decrease in the country's BOP equilibrium.

B. The trade deficit will lead to an increase in the country's BOP equilibrium.

C. The trade deficit will have no effect on the country's BOP equilibrium.

D. The trade deficit will lead to a decrease in the country's BOP equilibrium, but the exact change cannot be determined.

Correct Answer: A

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Question 13

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's labor and capital inputs increase by 10% and 20%, respectively, what is the likely effect on the firm's output level?

A. The firm's output level will increase by 10%.

B. The firm's output level will increase by 20%.

Correct C. The firm's output level will increase by 30%.

D. The firm's output level will increase by 40%.

Correct Answer: C

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Question 14

A government imposes a tax on a firm's output, cau\sing the firm's supply curve to shift to the left. If the firm's demand curve is inelastic, what is the likely effect on the firm's price and quantity sold?

Correct A. The firm's price will increase, and its quantity sold will decrease.

B. The firm's price will decrease, and its quantity sold will increase.

C. The firm's price will remain unchanged, and its quantity sold will decrease.

D. The firm's price will increase, and its quantity sold will remain unchanged.

Correct Answer: A

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Question 15

A country's GDP is calculated as the sum of its consumption (C), investment (I), government sp\ending (G), and net exports (NX). If the country's consumption and investment increase by 5% and 10%, respectively, and its government sp\ending and net exports remain unchanged, what is the likely effect on the country's GDP?

A. The country's GDP will increase by 5%.

B. The country's GDP will increase by 10%.

Correct C. The country's GDP will increase by 15%.

D. The country's GDP will increase by 20%.

Correct Answer: C

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Question 16

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

A. ₦25,000

Correct B. ₦50,000

C. ₦100,000

D. ₦200,000

Correct Answer: B

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Question 17

A firm's \cost function is given by C(x) = 2x^2 + 100x. If the firm produces 50 units, what is the total \cost?

A. ₦12,500

B. ₦15,000

Correct C. ₦17,500

D. ₦20,000

Correct Answer: C

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Question 18

A country's balance of payments account shows a trade deficit of ₦500 billion. If the country's GDP is ₦10 trillion, what is the implied trade balance as a percentage of GDP?

A. -5%

Correct B. -10%

C. -15%

D. -20%

Correct Answer: B

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Question 19

A firm's revenue function is given by R(x) = 100x - 2x^2. If the firm produces 20 units, what is the total revenue?

A. ₦1,600

B. ₦2,000

Correct C. ₦2,400

D. ₦2,800

Correct Answer: C

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Question 20

A country's inflation rate is 10% per annum. If the current price level is ₦100, what is the implied price level after one year?

A. ₦110

Correct B. ₦120

C. ₦130

D. ₦140

Correct Answer: B

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Question 21

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, what is the percentage change in quantity demanded when the price increases by 10%?

A. 5%

B. 10%

Correct C. 15%

D. 20%

Correct Answer: C

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Question 22

A firm is producing a good with a total revenue of ₦1,500 and a total \cost of ₦1,200. If the price elasticity of demand is 1.5, what is the price elasticity of supply?

A. 0.5

Correct B. 1.5

C. 2.5

D. 3.5

Correct Answer: B

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Question 23

A country has a GDP of ₦10 trillion and a population of 200 million. If the GDP per capita is ₦50,000, what is the percentage change in GDP per capita when the GDP increases by 10%?

A. 5%

Correct B. 10%

C. 15%

D. 20%

Correct Answer: B

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Question 24

A government is considering a tax on a good with a price elasticity of demand of 0.5. If the tax is ₦500, what is the percentage change in quantity demanded?

A. 5%

B. 10%

Correct C. 15%

D. 20%

Correct Answer: C

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Question 25

A firm is producing a good with a marginal \cost of ₦500 and a marginal revenue of ₦600. If the price elasticity of demand is 1.5, what is the profit-maximizing quantity?

A. 100 units

B. 200 units

Correct C. 300 units

D. 400 units

Correct Answer: C

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