Practice post utme delsu economics 2024 Past Questions

Question 1

A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where L is labor and K is capital. If the firm wants to produce 16 units of output, and the wage rate is ₦100 per unit of labor, and the rental rate is ₦200 per unit of capital, what is the minimum \cost of production?

A. ₦4000

Correct B. ₦8000

C. ₦12000

D. ₦16000

Correct Answer: B

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Question 2

A perfectly competitive market has a demand curve given by P = 100 - 2Q and a supply curve given by P = 20 + 3Q. What is the equilibrium price and quantity?

A. P = 50, Q = 15

Correct B. P = 60, Q = 20

C. P = 70, Q = 25

D. P = 80, Q = 30

Correct Answer: B

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Question 3

A consumer has an indifference curve given by U = 2x + 3y, where x is the quantity of good X and y is the quantity of good Y. The budget constraint is given by 2x + 3y = 12. What is the consumer's optimal bundle?

A. (2, 2)

Correct B. (3, 1)

C. (4, 0)

D. (0, 4)

Correct Answer: B

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Question 4

A firm has a \cost function given by C = 100 + 2Q, where Q is the quantity produced. If the firm produces 10 units of output, what is the total \cost?

A. ₦200

B. ₦300

Correct C. ₦400

D. ₦500

Correct Answer: C

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Question 5

A monopolist has a demand curve given by P = 100 - 2Q and a marginal revenue curve given by MR = 50 - Q. What is the monopolist's optimal quantity?

A. 10

Correct B. 15

C. 20

D. 25

Correct Answer: B

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Question 6

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 -2, what is the price elasticity of supply?

Correct A. -1

B. 1

C. 2

D. -3

Correct Answer: A

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Question 7

A firm has a production function Q = 2L + 3K, where Q is the quantity produced, L is the labor input, and K is the capital input. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm produces 20 units of output, what is the total \cost of production?

A. ₦4000

Correct B. ₦5000

C. ₦6000

D. ₦7000

Correct Answer: B

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Question 8

A consumer has a utility function U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are ₦50 and ₦75 respectively, and the consumer sp\ends ₦300 on the two goods, what is the consumer's budget constraint?

Correct A. 50x + 75y = 300

B. 75x + 50y = 300

C. 50x + 75y = 600

D. 75x + 50y = 600

Correct Answer: A

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Question 9

A firm has a \cost function C = 100 + 2L + 3K, where C is the total \cost, L is the labor input, and K is the capital input. If the firm produces 20 units of output, what is the marginal \cost?

A. ₦10

Correct B. ₦20

C. ₦30

D. ₦40

Correct Answer: B

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Question 10

A consumer has a budget constraint 50x + 75y = 300, where x and y are the quantities of two goods consumed. If the consumer's utility function is U = 2x + 3y, what is the consumer's optimal consumption bundle?

A. (10, 10)

Correct B. (15, 5)

C. (20, 0)

D. (0, 20)

Correct Answer: B

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Question 11

The Marshall-Lerner condition states that a country's balance of payments will improve if the sum of the percentage changes in its export and import prices exceeds the percentage change in its exchange rate. U\sing the Marshall-Lerner condition, calculate the percentage change in the exchange rate required for Nigeria's balance of payments to improve, given that the percentage change in export prices is 5% and the percentage change in import prices is 3%.

Correct A. -2%

B. -1%

C. 1%

D. 2%

Correct Answer: A

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Question 12

A monopolistically competitive firm faces a demand curve given by Q = 100 - 2P. The firm's marginal revenue function is MR = 50 - 2Q. Find the firm's profit-maximizing price and quantity.

A. P = 40, Q = 30

Correct B. P = 50, Q = 25

C. P = 60, Q = 20

D. P = 70, Q = 15

Correct Answer: B

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Question 13

The government of Nigeria plans to increase its revenue by impo\sing a tax on imports. The tax rate is set at 10% of the value of imports. If the value of imports is ₦100 million, what is the amount of tax revenue collected?

Correct A. ₦10 million

B. ₦15 million

C. ₦20 million

D. ₦25 million

Correct Answer: A

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Question 14

A firm's supply curve is given by Q = 2P + 10. The firm's demand curve is given by Q = 100 - 2P. Find the equilibrium price and quantity.

A. P = 20, Q = 30

Correct B. P = 25, Q = 35

C. P = 30, Q = 40

D. P = 35, Q = 45

Correct Answer: B

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Question 15

The government of Nigeria plans to increase its revenue by impo\sing a tax on domestic production. The tax rate is set at 15% of the value of production. If the value of production is ₦150 million, what is the amount of tax revenue collected?

A. ₦22.5 million

Correct B. ₦25 million

C. ₦27.5 million

D. ₦30 million

Correct Answer: B

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Question 16

The concept of scarcity in economics implies that the wants and needs of individuals are unlimited, but the resources available to satisfy these wants and needs are limited. This leads to the necessity of making choices about how to allocate resources. Which of the following is a correct statement about the concept of scarcity?

A. Scarcity is a problem that can be solved by increa\sing the supply of resources.

Correct B. Scarcity is a fundamental concept in economics that arises from the unlimited wants and needs of individuals.

C. Scarcity is a problem that can be solved by decrea\sing the demand for resources.

D. Scarcity is a problem that can be solved by increa\sing the efficiency of resource allocation.

Correct Answer: B

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Question 17

A consumer's indifference curve is a graphical representation of the various combinations of two goods that the consumer is willing and able to purchase at a given price level. Which of the following is a correct statement about indifference curves?

Correct A. Indifference curves are downward-sloping and convex to the origin.

B. Indifference curves are upward-sloping and concave to the origin.

C. Indifference curves are downward-sloping and concave to the origin.

D. Indifference curves are upward-sloping and convex to the origin.

Correct Answer: A

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Question 18

The opportunity \cost of a choice is the value of the next best alternative that is given up as a result of making that choice. Which of the following is a correct statement about opportunity \cost?

Correct A. Opportunity \cost is the value of the next best alternative that is given up as a result of making a choice.

B. Opportunity \cost is the value of the next best alternative that is gained as a result of making a choice.

C. Opportunity \cost is the value of the next best alternative that is irrelevant to the choice made.

D. Opportunity \cost is the value of the next best alternative that is unknown to the decision-maker.

Correct Answer: A

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Question 19

The money supply is the total amount of money available in an economy at a given time. Which of the following is a correct statement about the money supply?

Correct A. The money supply is the total amount of money available in an economy at a given time.

B. The money supply is the total amount of money available in an economy over a given period of time.

C. The money supply is the total amount of money available in an economy at a given price level.

D. The money supply is the total amount of money available in an economy at a given interest rate.

Correct Answer: A

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Question 20

The balance of payments is a statistical statement that summarizes a country's transactions with the rest of the world over a given period of time. Which of the following is a correct statement about the balance of payments?

Correct A. The balance of payments is a statistical statement that summarizes a country's transactions with the rest of the world over a given period of time.

B. The balance of payments is a statistical statement that summarizes a country's transactions with the rest of the world at a given price level.

C. The balance of payments is a statistical statement that summarizes a country's transactions with the rest of the world at a given interest rate.

D. The balance of payments is a statistical statement that summarizes a country's transactions with the rest of the world over a given period of time, but only for a specific industry.

Correct Answer: A

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Question 21

The concept of comparative advantage is a fundamental principle in international trade theory. Which of the following is a correct statement about comparative advantage?

Correct A. Comparative advantage refers to the ability of a country to produce a good at a lower opportunity \cost than another country.

B. Comparative advantage refers to the ability of a country to produce a good at a higher opportunity \cost than another country.

C. Comparative advantage refers to the ability of a country to produce a good at the same opportunity \cost as another country.

D. Comparative advantage refers to the ability of a country to produce a good at a lower price than another country.

Correct Answer: A

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Question 22

The concept of opportunity \cost is a fundamental principle in economics. Which of the following is a correct statement about opportunity \cost?

Correct A. Opportunity \cost is the value of the next best alternative that is given up as a result of making a choice.

B. Opportunity \cost is the value of the next best alternative that is gained as a result of making a choice.

C. Opportunity \cost is the value of the next best alternative that is irrelevant to the choice made.

D. Opportunity \cost is the value of the next best alternative that is unknown to the decision-maker.

Correct Answer: A

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Question 23

A firm is operating in a perfectly competitive market with a cons\tant marginal \cost (MC) of ₦100. The market price (P) is ₦120. If the firm's average total \cost (ATC) is ₦110, what is the firm's profit-maximizing output?

A. 10 units

Correct B. 20 units

C. 30 units

D. 40 units

Correct Answer: B

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Question 24

A monopolist faces a demand curve given by Q = 100 - 2P. The firm's marginal \cost (MC) is ₦50. What is the firm's profit-maximizing price?

A. ₦40

B. ₦50

Correct C. ₦60

D. ₦70

Correct Answer: C

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Question 25

A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the firm's output is 16 units, and the labor (L) is 4 units, what is the firm's capital (K)?

A. 4 units

B. 8 units

Correct C. 16 units

D. 32 units

Correct Answer: C

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