Practice post utme nile university economics 2025 Past Questions

Question 1

A monopolistically competitive firm faces a demand curve with an elasticity of -2. If the firm increases its price by 10%, what is the percentage change in quantity demanded?

A. 20%

B. 15%

Correct C. 10%

D. 5%

Correct Answer: C

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

Question 2

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?

A. x = 100, y = 200

B. x = 200, y = 100

Correct C. x = 150, y = 150

D. x = 50, y = 300

Correct Answer: C

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

Question 3

A perfectly competitive firm faces a supply curve given by Q = 2P + 5. If the firm's marginal \cost is ₦10, what is the firm's optimal price?

A. ₦15

B. ₦20

Correct C. ₦25

D. ₦30

Correct Answer: C

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

Question 4

A monopolist faces a demand curve with an elasticity of -4. If the monopolist increases its price by 20%, what is the percentage change in quantity demanded?

A. 40%

B. 30%

C. 20%

Correct D. 10%

Correct Answer: D

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

Question 5

A consumer's budget constraint is given by 2x + 3y = 1000. If the consumer's utility function is U(x,y) = 2x + 3y, what is the consumer's optimal bundle?

A. x = 100, y = 200

B. x = 200, y = 100

Correct C. x = 150, y = 150

D. x = 50, y = 300

Correct Answer: C

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

Question 6

Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) curve intersects its average variable \cost (AVC) curve at point E, where MR = AVC, and the firm's marginal \cost (MC) curve is initially below the AVC curve, what is the effect on the firm's profit-maximizing output level?

A. The firm will increase its profit-maximizing output level.

Correct B. The firm will decrease its profit-maximizing output level.

C. The firm's profit-maximizing output level will remain unchanged.

D. The firm will experience a loss.

Correct Answer: B

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

Question 7

Suppose a country's import demand function is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the country's export supply function is given by Qs = 50 + P, where Qs is the quantity supplied, what is the equilibrium price and quantity?

A. P = 25, Q = 75

Correct B. P = 50, Q = 100

C. P = 75, Q = 125

D. P = 100, Q = 150

Correct Answer: B

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

Question 8

A firm's total revenue (TR) is given by the equation TR = 1000 + 20Q, where Q is the quantity sold. If the firm's total \cost (TC) is given by the equation TC = 500 + 10Q, what is the firm's profit-maximizing output level?

A. Q = 20

Correct B. Q = 30

C. Q = 40

D. Q = 50

Correct Answer: B

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

Question 9

A country's balance of payments (BOP) accounts can be represented by the equation BOP = X - M, where X is the value of exports and M is the value of imports. If the country's exports are valued at ₦100 billion and its imports are valued at ₦120 billion, what is the country's balance of payments?

A. ₦20 billion surplus

Correct B. ₦20 billion deficit

C. ₦40 billion surplus

D. ₦40 billion deficit

Correct Answer: B

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

Question 10

A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor input, and K is the capital input. If the firm's labor input is 16 units and its capital input is 9 units, what is the firm's output?

A. 36

B. 48

Correct C. 60

D. 72

Correct Answer: C

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

Question 11

A consumer's utility function is given by ( U(x,y) = 10\log_{10}(x) + 20\log_{10}(y) ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, find the optimal bundle of x and y u\sing Lagrange multipliers.

Correct A. x = 10, y = 5

B. x = 20, y = 2

C. x = 5, y = 10

D. x = 15, y = 3

Correct Answer: A

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

Question 12

A firm's production function is given by $ Q = 100K^{0.5}L^{0.5} $. If the firm's techno\logy is characterized by cons\tant returns to scale, find the value of the elasticity of substitution between K and L.

A. 1

Correct B. 0.5

C. 2

D. 3

Correct Answer: B

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

Question 13

A monopolist's demand function is given by $ Q = 100 - 2P $. If the firm's marginal \cost is ₦20, find the optimal price and quantity u\sing the first-order condition.

A. P = ₦40, Q = 30

Correct B. P = ₦30, Q = 40

C. P = ₦20, Q = 50

D. P = ₦10, Q = 60

Correct Answer: B

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

Question 14

A firm's \cost function is given by $ C = 100K + 200L $. If the firm's revenue function is given by $ R = 300K + 400L $, find the value of the elasticity of demand u\sing the midpoint method.

Correct A. 0.5

B. 1

C. 2

D. 3

Correct Answer: A

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

Question 15

A firm's production function is given by $ Q = 100K^{0.5}L^{0.5} $. If the firm's techno\logy is characterized by decrea\sing returns to scale, find the value of the elasticity of substitution between K and L.

Correct A. 0.5

B. 1

C. 2

D. 3

Correct Answer: A

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

Question 16

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 16 units when the number of workers (L) is 4 and the amount of capital (K) is 4, what is the marginal product of labor (MPL) when L = 9 and K = 9?

A. 1

Correct B. 2

C. 3

D. 4

Correct Answer: B

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

Question 17

A government budget is given by B = T + I. If the government's tax revenue (T) is ₦100 billion and the government's investment (I) is ₦50 billion, what is the government's budget (B)?

A. ₦100 billion

Correct B. ₦125 billion

C. ₦150 billion

D. ₦175 billion

Correct Answer: B

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

Question 18

A consumer's utility function is given by U = 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 of x and y?

Correct A. x = 10, y = 5

B. x = 5, y = 10

C. x = 15, y = 3

D. x = 3, y = 15

Correct Answer: A

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

Question 19

A firm's \cost function is given by C = 2L + 3K. If the firm's output is 16 units when the number of workers (L) is 4 and the amount of capital (K) is 4, what is the firm's average \cost (AC) when L = 9 and K = 9?

A. ₦2

B. ₦3

Correct C. ₦4

D. ₦5

Correct Answer: C

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

Question 20

A government's budget constraint is given by B = T + I. If the government's tax revenue (T) is ₦100 billion and the government's investment (I) is ₦50 billion, what is the government's budget (B)?

A. ₦100 billion

Correct B. ₦125 billion

C. ₦150 billion

D. ₦175 billion

Correct Answer: B

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

Question 21

A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. U\sing the concept of returns to scale, determine the optimal price and quantity for the monopolist to produce.

A. P = 50, Q = 25

Correct B. P = 75, Q = 12.5

C. P = 100, Q = 0

D. P = 0, Q = 50

Correct Answer: B

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

Question 22

A consumer has a utility function U(x, y) = 2x + 3y. If the prices of x and y are $2 and $3 respectively, and the consumer has a budget of $15, determine the optimal quantities of x and y to consume.

Correct A. x = 3, y = 2

B. x = 2, y = 3

C. x = 1, y = 4

D. x = 4, y = 1

Correct Answer: A

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

Question 23

A firm is producing a good with a production function Q = 2L^2 + 3K. If the prices of labor and capital are $10 and $20 respectively, and the firm has a budget of $100, determine the optimal quantities of labor and capital to use.

A. L = 2, K = 5

Correct B. L = 5, K = 2

C. L = 3, K = 4

D. L = 4, K = 3

Correct Answer: B

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

Question 24

A consumer has a budget of $100 and faces the following prices for two goods: x = $10 and y = $20. U\sing the concept of opportunity \cost, determine the optimal quantities of x and y to consume.

Correct A. x = 5, y = 2

B. x = 2, y = 5

C. x = 3, y = 4

D. x = 4, y = 3

Correct Answer: A

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

Question 25

A firm is producing a good with a production function Q = 2L^2 + 3K. If the prices of labor and capital are $10 and $20 respectively, and the firm has a budget of $100, determine the optimal quantities of labor and capital to use.

A. L = 2, K = 5

Correct B. L = 5, K = 2

C. L = 3, K = 4

D. L = 4, K = 3

Correct Answer: B

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

POST UTME NILE UNIVERSITY 2025 Economics | Objective

Master the Exam!

Help others prepare! Share this practice hub: