Practice post utme eksu economics 2024 Past Questions

Question 1

Consider a firm operating in a perfectly competitive market with a given production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦200, and the firm's current output price is p = ₦500, calculate the firm's current profit-maximizing level of labor (L) and capital (K).

Correct A. L = 100, K = 100

B. L = 50, K = 50

C. L = 200, K = 200

D. L = 0, K = 0

Correct Answer: A

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Question 2

A consumer's demand function for a product is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the consumer's income is ₦1000 and the price of the product is ₦50, calculate the consumer's willingness to pay for the product.

Correct A. ₦200

B. ₦300

C. ₦400

D. ₦500

Correct Answer: A

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Question 3

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦200, and the firm's current output price is p = ₦500, calculate the firm's current profit-maximizing level of labor (L) and capital (K).

Correct A. L = 100, K = 100

B. L = 50, K = 50

C. L = 200, K = 200

D. L = 0, K = 0

Correct Answer: A

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Question 4

A consumer's demand function for a product is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the consumer's income is ₦1000 and the price of the product is ₦50, calculate the consumer's willingness to pay for the product.

Correct A. ₦200

B. ₦300

C. ₦400

D. ₦500

Correct Answer: A

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Question 5

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦200, and the firm's current output price is p = ₦500, calculate the firm's current profit-maximizing level of labor (L) and capital (K).

Correct A. L = 100, K = 100

B. L = 50, K = 50

C. L = 200, K = 200

D. L = 0, K = 0

Correct Answer: A

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Question 6

Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will be the effect on the firm's output?

Correct A. The firm will increase its output.

B. The firm will decrease its output.

C. The firm's output will remain unchanged.

D. The firm's output will increase and then decrease.

Correct Answer: A

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Question 7

A country's GDP is ₦1,000,000,000. If the country's population is 20,000,000, what is the per capita income?

A. ₦50

Correct B. ₦100

C. ₦200

D. ₦500

Correct Answer: B

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Question 8

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor (L) increases by 20% and capital (K) remains cons\tant, what will be the effect on output?

A. Output will increase by 10%

Correct B. Output will increase by 20%

C. Output will increase by 30%

D. Output will remain unchanged.

Correct Answer: B

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Question 9

A firm's total revenue (TR) is given by TR = 100Q - 2Q^2. If the firm's output (Q) is 10 units, what is the marginal revenue (MR)?

A. ₦800

B. ₦900

Correct C. ₦1000

D. ₦1100

Correct Answer: C

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Question 10

A country's GNP is ₦1,500,000,000. If the country's GDP is ₦1,000,000,000, what is the net factor income from abroad?

A. ₦500,000,000

B. ₦750,000,000

C. ₦1,000,000,000

Correct D. ₦1,250,000,000

Correct Answer: D

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Question 11

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

A. 5%

B. 10%

Correct C. 12%

D. 15%

Correct Answer: C

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Question 12

A country's GDP is $100 billion, its imports are $20 billion, and its exports are $25 billion. What is its balance of trade?

A. $5 billion surplus

Correct B. $5 billion deficit

C. $10 billion surplus

D. $10 billion deficit

Correct Answer: B

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Question 13

A government imposes a tax on a firm's output. The firm's supply curve shifts to the left. What is the effect on the firm's profit-maximizing output?

A. Increases

Correct B. Decreases

C. Remains the same

D. Cannot be determined

Correct Answer: B

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Question 14

A country's GNP is $120 billion, its GDP is $110 billion, and its net factor income from abroad is $5 billion. What is its net capital outflow?

Correct A. $5 billion

B. $10 billion

C. $15 billion

D. $20 billion

Correct Answer: A

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Question 15

A firm's demand curve is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's price is increased by 20%, what is the percentage change in quantity demanded?

A. -10%

Correct B. -20%

C. -30%

D. -40%

Correct Answer: B

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Question 16

Agricultural development in Nigeria has been hindered by the scarcity of land. Assuming that the opportunity \cost of land is cons\tant, what is the effect of an increase in the price of land on agricultural output?

A. An increase in agricultural output

Correct B. A decrease in agricultural output

C. No change in agricultural output

D. An increase in agricultural output in the short run but a decrease in the long run

Correct Answer: B

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Question 17

A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦2 and ₦3 respectively, what is the consumer's optimal bundle?

Correct A. x = 200, y = 100

B. x = 150, y = 150

C. x = 100, y = 200

D. x = 200, y = 200

Correct Answer: A

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Question 18

The demand for a product is given by Qd = 100 - 2P and the supply is given by Qs = 2P - 10. What is the equilibrium price and quantity?

Correct A. P = 15, Q = 25

B. P = 20, Q = 30

C. P = 25, Q = 35

D. P = 30, Q = 40

Correct Answer: A

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Question 19

A firm's production function is given by Q = 2L + 3K. If the firm's \cost function is given by C = 10L + 20K, what is the firm's profit-maximizing level of output?

A. Q = 10

Correct B. Q = 20

C. Q = 30

D. Q = 40

Correct Answer: B

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Question 20

A country's GDP is given by GDP = C + I + G + $ X - M $. If the country's consumption is ₦500 billion, investment is ₦200 billion, government exp\enditure is ₦300 billion, exports are ₦400 billion, and imports are ₦200 billion, what is the country's GDP?

A. ₦1.5 trillion

B. ₦1.8 trillion

Correct C. ₦2.0 trillion

D. ₦2.2 trillion

Correct Answer: C

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Question 21

A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm's current labor and capital inputs are 4 and 9 respectively, what is the marginal product of labor?

A. 1

Correct B. 2

C. 3

D. 4

Correct Answer: B

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Question 22

A country's balance of payments is given by the following equation: BOP = $ X - M $ + $ F - I $, where X is exports, M is imports, F is foreign investment, and I is domestic investment. If the country's current exports and imports are 100 and 80 respectively, and foreign investment and domestic investment are 50 and 30 respectively, what is the balance of payments?

Correct A. 10

B. 20

C. 30

D. 40

Correct Answer: A

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Question 23

A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's current price is 20, what is the quantity demanded?

Correct A. 60

B. 70

C. 80

D. 90

Correct Answer: A

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Question 24

A country's supply function is given by Q = 50 + 2P, where Q is quantity supplied and P is price. If the country's current price is 30, what is the quantity supplied?

A. 70

Correct B. 80

C. 90

D. 100

Correct Answer: B

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Question 25

A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm's current labor and capital inputs are 4 and 9 respectively, what is the marginal product of capital?

A. 1

Correct B. 2

C. 3

D. 4

Correct Answer: B

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