Practice post utme nile university economics 2021 Past Questions

Question 1

Determine the returns to scale for a production function Q = 2K^$ 1/2 $L^$ 1/2 $, where Q is output, K is capital, and L is labor.

A. Increa\sing Returns to Scale

B. Decrea\sing Returns to Scale

Correct C. Cons\tant Returns to Scale

D. No Returns to Scale

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 2

A country's GDP is ₦100 billion, and its GNP is ₦120 billion. What is the net factor income from abroad?

A. ₦20 billion

Correct B. ₦30 billion

C. ₦40 billion

D. ₦50 billion

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 3

A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the price elasticity of demand is -2, what is the percentage change in quantity demanded if the price increases by 10%?

Correct A. -20%

B. -15%

C. -10%

D. -5%

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 4

A central bank increases the reserve requirement for commercial banks from 10% to 15%. What is the effect on the money supply?

A. Increase

Correct B. Decrease

C. No Change

D. Uncertain

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 5

A country's balance of payments is in equilibrium. If the country's exports increase by 10% and its imports decrease by 5%, what is the effect on the current account balance?

Correct A. Increase

B. Decrease

C. No Change

D. Uncertain

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 6

A firm's production function is given by Q = 100L^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. 10%

B. 12%

Correct C. 15%

D. 18%

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 7

A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?

Correct A. x = 40, y = 20

B. x = 30, y = 30

C. x = 20, y = 40

D. x = 10, y = 50

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 8

A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's marginal revenue is ₦50, what is the firm's optimal price?

A. ₦20

B. ₦30

Correct C. ₦40

D. ₦50

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 9

A country's GDP is ₦100 billion, its government exp\enditure is ₦30 billion, and its net taxes are ₦20 billion. What is the country's national income?

A. ₦120 billion

B. ₦130 billion

Correct C. ₦140 billion

D. ₦150 billion

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 10

A firm's production function is given by Q = 100L^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. 10%

B. 12%

Correct C. 15%

D. 18%

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 11

A firm is operating in a perfectly competitive market with a demand curve given by Qd = 100 - 2P and a supply curve given by Qs = 2P. If the market equilibrium price is $20, what is the consumer surplus?

Correct A. ₦2000

B. ₦2500

C. ₦3000

D. ₦3500

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 12

A consumer has a utility function given by U(x, y) = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12, and the prices of x and y are $2 and $3 respectively, what is the consumer's optimal bundle?

Correct A. x = 2, y = 4

B. x = 4, y = 2

C. x = 6, y = 0

D. x = 0, y = 4

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 13

A monopolist has a demand curve given by Qd = 100 - 2P and a marginal revenue curve given by MR = 20 - 2Q. If the firm's marginal \cost is $10, what is the firm's profit-maximizing output?

A. 20 units

Correct B. 30 units

C. 40 units

D. 50 units

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 14

A firm is operating in a perfectly competitive market with a demand curve given by Qd = 100 - 2P and a supply curve given by Qs = 2P. If the market equilibrium price is $20, what is the producer surplus?

A. ₦2000

B. ₦2500

C. ₦3000

Correct D. ₦3500

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 15

A consumer has a utility function given by U(x, y) = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12, and the prices of x and y are $2 and $3 respectively, what is the consumer's optimal bundle?

A. x = 2, y = 4

Correct B. x = 4, y = 2

C. x = 6, y = 0

D. x = 0, y = 4

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 16

Consider a country with a fixed money supply of ₦10 billion. The central bank increases the reserve requirement for commercial banks from 10% to 15%. Assuming the money multiplier is 10, what is the new money supply?

A. ₦9 billion

B. ₦10 billion

Correct C. ₦11 billion

D. ₦12 billion

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 17

A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm's budget constraint is 100L + 200K = ₦10,000, find the optimal level of labor and capital.

A. L = 10, K = 20

B. L = 20, K = 10

Correct C. L = 15, K = 15

D. L = 25, K = 5

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 18

A country's import demand function is given by M = 100 - 2P, where M is the quantity of imports and P is the price of imports. If the price of imports is ₦50, what is the quantity of imports?

Correct A. 100 units

B. 200 units

C. 50 units

D. 250 units

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 19

A firm's supply function is given by Q = 100 + 2P. If the price of the firm's product is ₦50, what is the quantity supplied?

A. 150 units

B. 200 units

Correct C. 250 units

D. 300 units

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 20

A country's export supply function is given by X = 100 + 2P, where X is the quantity of exports and P is the price of exports. If the price of exports is ₦50, what is the quantity supplied?

A. 150 units

B. 200 units

Correct C. 250 units

D. 300 units

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 21

A firm operating in a perfectly competitive market is characterized by which of the following?

A. Monopoly

B. Oligopoly

Correct C. Perfect Competition

D. Monopsony

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 22

The balance of payments (BOP) accounts record all transactions between a country and the rest of the world. Which of the following is NOT a component of the BOP?

A. Current Account

B. Capital Account

C. Financial Account

Correct D. Government Account

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 23

A firm's demand curve is downward sloping because of the law of?

Correct A. Diminishing Marginal Utility

B. Diminishing Marginal Returns

C. Law of Supply

D. Law of Demand

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 24

The money supply in an economy is primarily controlled by the?

Correct A. Central Bank

B. Commercial Banks

C. Government

D. Private Sector

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 25

The Gross Domestic Product (GDP) is a measure of the total value of all final goods and services produced within a country's borders. Which of the following is NOT included in the calculation of GDP?

A. Personal Consumption Exp\enditures

B. Gross Investment

C. Government Sp\ending

Correct D. Imports

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

POST UTME NILE UNIVERSITY 2021 Economics | Objective

Master the Exam!

Help others prepare! Share this practice hub: