Practice post utme lautech economics 2019 Past Questions

Question 1

Calculate the value of the definite integral $ int_{0}^{2} \( 2x^2 + 3x - 4 \ $ dx ) u\sing the power rule of integration.

Correct A. 8

B. 10

C. 12

D. 14

Correct Answer: A

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Question 2

A firm produces two goods, A and B. The production function for good A is given by $ Q_A = 2L^{0.5}K^{0.5} $ and for good B is given by $ Q_B = 3L^{0.7}K^{0.3} $. If the firm has 100 units of labor and 50 units of capital, calculate the total output of good A.

A. 100

Correct B. 120

C. 140

D. 160

Correct Answer: B

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Question 3

A monopolist faces a demand curve given by $ P = 100 - 2Q $ and a \cost function given by $ C = 20 + 10Q $. Calculate the profit-maximizing quantity and price.

Correct A. 20, 80

B. 30, 70

C. 40, 60

D. 50, 50

Correct Answer: A

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Question 4

A firm has a production function given by $ Q = 2L^{0.5}K^{0.5} $. If the firm has 100 units of labor and 50 units of capital, calculate the marginal product of labor.

A. 0.5

Correct B. 1

C. 1.5

D. 2

Correct Answer: B

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Question 5

A firm has a \cost function given by $ C = 20 + 10Q $. If the firm produces 10 units of output, calculate the total \cost.

A. 120

Correct B. 140

C. 160

D. 180

Correct Answer: B

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Question 6

The government of Nigeria has implemented a policy to increase the production of rice in the country. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing the availability of fertilizers. However, the policy has been criticized for its potential impact on the environment and the displacement of small-scale farmers. What is the likely effect of this policy on the supply of rice in Nigeria?

Correct A. The supply of rice will increase due to the increased production by farmers.

B. The supply of rice will decrease due to the displacement of small-scale farmers.

C. The supply of rice will remain the same due to the balanced effects of the policy.

D. The supply of rice will increase due to the improved irrigation systems.

Correct Answer: A

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Question 7

A firm is producing a good with the following 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 $10 per hour and the price of capital is $20 per hour, and the firm is currently producing 100 units of the good, what is the marginal product of labor?

A. The marginal product of labor is 2 units.

Correct B. The marginal product of labor is 3 units.

C. The marginal product of labor is 4 units.

D. The marginal product of labor is 5 units.

Correct Answer: B

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Question 8

A consumer has the following utility function: U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are $5 and $10 respectively, and the consumer has a budget of $50, what is the optimal quantity of good x to consume?

A. The optimal quantity of good x to consume is 5 units.

Correct B. The optimal quantity of good x to consume is 10 units.

C. The optimal quantity of good x to consume is 15 units.

D. The optimal quantity of good x to consume is 20 units.

Correct Answer: B

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Question 9

A firm is producing a good with the following 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 $10 per hour and the price of capital is $20 per hour, and the firm is currently producing 100 units of the good, what is the total product of labor?

A. The total product of labor is 200 units.

B. The total product of labor is 300 units.

Correct C. The total product of labor is 400 units.

D. The total product of labor is 500 units.

Correct Answer: C

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Question 10

A consumer has the following utility function: U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are $5 and $10 respectively, and the consumer has a budget of $50, what is the optimal quantity of good y to consume?

A. The optimal quantity of good y to consume is 5 units.

B. The optimal quantity of good y to consume is 10 units.

C. The optimal quantity of good y to consume is 15 units.

Correct D. The optimal quantity of good y to consume is 20 units.

Correct Answer: D

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Question 11

The Marshall-Lerner condition states that a country will experience an improvement in its balance of payments if the sum of the elasticities of demand for imports and exports exceeds 1. What is the minimum value of the sum of the elasticities of demand for imports and exports for a country to experience an improvement in its balance of payments?

Correct A. 1

B. 0.5

C. 1.5

D. 2

Correct Answer: A

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Question 12

A firm is considering the production of two goods, X and Y. The production function for good X is given by Q_X = 2L^0.5K^0.5, where L is labor and K is capital. The production function for good Y is given by Q_Y = 3L^0.2K^0.8. If the firm has 100 units of labor and 200 units of capital, what is the ratio of the marginal product of labor with respect to good X to the marginal product of labor with respect to good Y?

Correct A. 1:3

B. 2:3

C. 3:2

D. 1:2

Correct Answer: A

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Question 13

A perfectly competitive market has a demand curve given by P = 100 - 2Q and a supply curve given by P = 20 + 2Q. If the market is initially in equilibrium, and then a shift in demand occurs, cau\sing the demand curve to shift to P = 80 - 2Q, what is the new equilibrium price and quantity?

Correct A. Price = 60, Quantity = 20

B. Price = 40, Quantity = 30

C. Price = 50, Quantity = 25

D. Price = 70, Quantity = 15

Correct Answer: A

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Question 14

A monopolist faces a demand curve given by P = 100 - 2Q and a marginal revenue curve given by MR = 50 - 2Q. If the firm's marginal \cost is cons\tant at 20, what is the profit-maximizing quantity and price?

Correct A. Quantity = 20, Price = 60

B. Quantity = 15, Price = 70

C. Quantity = 25, Price = 50

D. Quantity = 10, Price = 80

Correct Answer: A

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Question 15

A firm is considering the production of two goods, X and Y. The production function for good X is given by Q_X = 2L^0.5K^0.5, where L is labor and K is capital. The production function for good Y is given by Q_Y = 3L^0.2K^0.8. If the firm has 100 units of labor and 200 units of capital, what is the ratio of the total product of labor with respect to good X to the total product of labor with respect to good Y?

Correct A. 1:3

B. 2:3

C. 3:2

D. 1:2

Correct Answer: A

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Question 16

The opportunity \cost of producing one more unit of a good is measured by the

Correct A. marginal \cost

B. marginal revenue

C. marginal benefit

D. marginal utility

Correct Answer: A

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Question 17

The law of diminishing marginal utility states that as the consumption of a good increases, the marginal utility derived from each additional unit of the good

A. increases

Correct B. decreases

C. remains cons\tant

D. becomes negative

Correct Answer: B

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Question 18

The balance of payments account is a statistical statement that summarizes a country's

A. merchandise trade

B. services trade

Correct C. current account

D. capital account

Correct Answer: C

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Question 19

Agricultural development in Nigeria has been hindered by

A. lack of irrigation facilities

B. inadequate funding

C. poor transportation network

Correct D. all of the above

Correct Answer: D

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Question 20

The concept of perfect competition is characterized by

A. a \single seller

Correct B. many buyers and sellers

C. barriers to entry

D. price discrimination

Correct Answer: B

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Question 21

Suppose the demand function for a commodity is given by Qd = 100 - 2P and the supply function is given by Qs = 2P + 10. If the market is in equilibrium, what is the price of the commodity?

A. ₦50

Correct B. ₦75

C. ₦100

D. ₦125

Correct Answer: B

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Question 22

A firm's production function is given by Q = 2L^2 + 3K, where Q is the output, L is the labor and K is the capital. If the firm has 10 units of labor and 5 units of capital, what is the output?

A. 50

B. 75

Correct C. 100

D. 125

Correct Answer: C

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Question 23

A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer has a budget of ₦100 and the prices of the two goods are ₦20 and ₦30 respectively, what is the consumer's optimal bundle?

Correct A. x = 2, y = 3

B. x = 3, y = 2

C. x = 4, y = 1

D. x = 1, y = 4

Correct Answer: A

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Question 24

A firm's \cost function is given by C = 2L + 3K, where C is the \cost, L is the labor and K is the capital. If the firm has 10 units of labor and 5 units of capital, what is the \cost?

A. ₦50

B. ₦75

Correct C. ₦100

D. ₦125

Correct Answer: C

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Question 25

A firm's revenue function is given by R = 2PQ, where R is the revenue, P is the price and Q is the quantity. If the firm sells 10 units of a commodity at a price of ₦20, what is the revenue?

Correct A. ₦200

B. ₦250

C. ₦300

D. ₦350

Correct Answer: A

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