Practice post utme ims u economics 2022 Past Questions

Question 1

A monopolist has a demand function Q = 100 - 2P and a marginal revenue function MR = 200 - 2P. What is the monopolist's optimal price and quantity?

A. (₦50, 75)

B. (₦75, 50)

C. (₦100, 25)

D. (₦25, 100)

Question 2

A country's GDP is ₦1,500 billion, and its GNP is ₦1,600 billion. Calculate the net factor income from abroad (NFIA) and the net foreign investment (NFI).

A. $ NFIA = GNP - GDP = 1,600 - 1,500 = 100 $

B. $ NFIA = GNP - GDP = 1,500 - 1,600 = -100 $

C. $ NFI = NFIA + \( GDP - GNP \ $ = 100 + $ 1,500 - 1,600 $ = -100 )

D. $ NFI = NFIA + \( GDP - GNP \ $ = 100 + $ 1,600 - 1,500 $ = 100 )

Question 3

A firm's demand function is Q = 100 - 2P, where Q is quantity and P is price. If the firm's supply function is Q = 2P - 100, what is the firm's equilibrium price and quantity?

A. (₦50, 75)

B. (₦75, 50)

C. (₦100, 25)

D. (₦25, 100)

Question 4

A country's economy is experiencing a recession. U\sing the concept of opportunity \cost, explain why the government may choose to implement expansionary fiscal policy to stimulate economic growth.

A. The government may choose to implement expansionary fiscal policy because it would lead to an increase in aggregate demand, which would stimulate economic growth.

B. The government may choose to implement contractionary fiscal policy because it would lead to a decrease in aggregate demand, which would reduce the opportunity \cost of stimulating economic growth.

C. The government may choose to implement expansionary monetary policy because it would lead to an increase in aggregate demand, which would stimulate economic growth.

D. The government may choose to implement contractionary monetary policy because it would lead to a decrease in aggregate demand, which would reduce the opportunity \cost of stimulating economic growth.

Question 5

A firm's \cost function is given by C = 2L + 3K. If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, calculate the total \cost (TC) and the marginal \cost (MC) when L = 4 and K = 2.

A. $ TC = 2\( 4 \ $(50) + 3(2)(100) = 400 + 600 = 1,000 )

B. $ TC = 2\( 4 \ $(50) - 3(2)(100) = 400 - 600 = -200 )

C. $ MC = \frac{dC}{dL} = 2\( 50 \ $ + 3(0) = 100 )

D. $ MC = \frac{dC}{dL} = 2\( 0 \ $ + 3(100) = 300 )

Question 6

A central bank has a monetary policy rule: i = 2 + 0.5$ P - 2 $. If the inflation rate is 3, what is the nominal interest rate?

A. 4

B. 5

C. 6

D. 7

Question 7

A consumer's utility function is given by U(x, y) = 2x^0.5y^0.5. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of x and y?

A. x = 20, y = 10

B. x = 15, y = 15

C. x = 10, y = 20

D. x = 5, y = 25

Question 8

A monopolist faces a demand curve given by Q = 100 - 2P. The firm's marginal revenue (MR) is given by MR = 200 - 2Q. What is the firm's profit-maximizing price?

A. ₦50

B. ₦60

C. ₦70

D. ₦80

Question 9

A consumer has a utility function given by U = 2x + 3y, where x and y are the quantities of two goods consumed. The consumer's budget constraint is given by 2x + 3y = ₦100. What is the consumer's optimal bundle of goods?

A. x = 20, y = 10

B. x = 15, y = 20

C. x = 10, y = 30

D. x = 5, y = 40

Question 10

A consumer's demand for a good is given by Q = 100 - 2P. If the consumer's income is ₦1000 and the price of the good is ₦20, what is the consumer's willingness to pay?

A. ₦40

B. ₦50

C. ₦60

D. ₦70

Question 11

A consumer has the following utility function: U(x, y) = 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. x = 10, y = 5

B. x = 5, y = 10

C. x = 15, y = 0

D. x = 0, y = 15

Question 12

A country's balance of payments is in surplus, indicating that it is exporting more goods and services than it is importing. U\sing the concept of the balance of payments, explain why this may lead to an appreciation of the country's currency.

A. The surplus in the balance of payments leads to an increase in the demand for the country's currency, cau\sing its value to appreciate.

B. The surplus in the balance of payments leads to a decrease in the supply of the country's currency, cau\sing its value to appreciate.

C. The surplus in the balance of payments leads to an increase in the country's foreign exchange reserves, cau\sing its currency to appreciate.

D. The surplus in the balance of payments leads to a decrease in the country's foreign exchange reserves, cau\sing its currency to depreciate.

Question 13

A country's balance of payments (BOP) accounts are in equilibrium when its current account (CA) equals its capital account (KA). If the country's CA is $100 million and its KA is $150 million, what is the likely effect on the country's exchange rate?

A. The exchange rate will appreciate.

B. The exchange rate will depreciate.

C. The exchange rate will remain unchanged.

D. The exchange rate will fluctuate.

Question 14

A consumer is faced with a choice between two different brands of smartphones. Brand A \costs ₦150,000 and has a screen size of 6 inches, while Brand B \costs ₦120,000 and has a screen size of 5 inches. U\sing the concept of utility, explain why the consumer may prefer Brand A over Brand B.

A. The consumer prefers Brand A because it has a larger screen size, which provides more utility.

B. The consumer prefers Brand A because it is more expensive, which means it has a higher quality.

C. The consumer prefers Brand A because it has a higher price-to-screen-size ratio, which means it is more efficient.

D. The consumer prefers Brand A because it has a lower price-to-screen-size ratio, which means it is less efficient.

Question 15

A firm is facing a market demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. What is the firm's profit-maximizing quantity of output?

A. 50

B. 75

C. 100

D. 125

POST UTME IMS U 2022 Economics | Objective

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