Practice post utme noun economics 2022 Past Questions

Question 1

The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, what is the price at which the quantity demanded is 60?

A. ₦20

Correct B. ₦30

C. ₦40

D. ₦50

Correct Answer: B

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Question 2

A firm is producing a product at a level where the marginal revenue (MR) is ₦10 and the marginal \cost (MC) is ₦15. What is the change in the firm's profit if it increases production by 1 unit?

Correct A. -₦5

B. ₦5

C. ₦10

D. ₦15

Correct Answer: A

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Question 3

The supply of a product is given by the equation Qs = 50 + 2P, where Qs is the quantity supplied and P is the price. If the price elasticity of supply is 0.5, what is the price at which the quantity supplied is 80?

A. ₦25

B. ₦30

Correct C. ₦35

D. ₦40

Correct Answer: C

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Question 4

A country's balance of payments (BOP) is given by the equation BOP = X - M, where X is the value of exports and M is the value of imports. If the value of exports is ₦100 and the value of imports is ₦80, what is the balance of payments?

Correct A. ₦20

B. ₦30

C. ₦40

D. ₦50

Correct Answer: A

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Question 5

A firm is producing a product at a level where the marginal revenue (MR) is ₦20 and the marginal \cost (MC) is ₦25. What is the change in the firm's profit if it increases production by 1 unit?

A. -₦5

Correct B. ₦5

C. ₦10

D. ₦15

Correct Answer: B

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Question 6

The government of a country decides to impose a tax on imported goods to raise revenue. However, the tax also leads to an increase in the price of these goods, which in turn reduces the quantity demanded. This is an example of a:

A. deadweight loss

Correct B. tax incidence

C. tax revenue

D. tax evasion

Correct Answer: B

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Question 7

A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor and K is the capital. If the firm wants to produce 16 units of output, and it has 4 units of labor, how many units of capital does it need to produce the desired output?

A. 4

Correct B. 8

C. 16

D. 32

Correct Answer: B

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Question 8

A country's balance of payments is given by the following equation: BOP = X - M, where X is the exports and M is the imports. If the country's exports are $100 billion and its imports are $120 billion, what is the balance of payments?

Correct A. -20 billion

B. 20 billion

C. 40 billion

D. 60 billion

Correct Answer: A

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Question 9

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 wants to minimize its \cost, and it has 4 units of labor, how many units of capital does it need to produce the desired output?

A. 4

Correct B. 8

C. 16

D. 32

Correct Answer: B

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Question 10

A country's GDP is given by the following equation: GDP = C + I + G + $ X - M $, where C is the consumption, I is the investment, G is the government sp\ending, X is the exports and M is the imports. If the country's consumption is $500 billion, its investment is $200 billion, its government sp\ending is $300 billion, its exports are $100 billion and its imports are $120 billion, what is the GDP?

A. 980 billion

Correct B. 1000 billion

C. 1020 billion

D. 1040 billion

Correct Answer: B

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Question 11

A firm is operating under increa\sing returns to scale. If it increases its production from 100 units to 200 units, what will be the percentage change in its total output?

A. 50%

B. 100%

Correct C. 200%

D. 300%

Correct Answer: C

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Question 12

A monopolist faces a demand curve given by Q = 100 - 2P. If the firm's marginal revenue (MR) is 50, what is its marginal \cost (MC)?

A. 25

Correct B. 50

C. 75

D. 100

Correct Answer: B

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Question 13

A central bank is considering a monetary policy to reduce inflation. If the current inflation rate is 5% and the central bank wants to reduce it to 3% within a year, what is the required rate of interest?

A. 5%

Correct B. 6%

C. 7%

D. 8%

Correct Answer: B

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Question 14

A firm has a total revenue (TR) of ₦1,000,000 and a total \cost (TC) of ₦800,000. What is its profit?

Correct A. ₦100,000

B. ₦200,000

C. ₦300,000

D. ₦400,000

Correct Answer: A

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Question 15

A country's GDP is ₦5,000,000,000 and its GNP is ₦5,500,000,000. What is the net factor income from abroad?

A. ₦500,000,000

Correct B. ₦1,000,000,000

C. ₦1,500,000,000

D. ₦2,000,000,000

Correct Answer: B

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Question 16

Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, and it currently uses L = 4 and K = 9, calculate the firm's current total \cost.

A. ₦1,440

Correct B. ₦1,680

C. ₦1,920

D. ₦2,160

Correct Answer: B

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Question 17

A consumer's utility function is given by U = 2x^0.5y^0.5. If the consumer's income is ₦1,000 and the prices of x and y are ₦10 and ₦20 respectively, find the consumer's optimal bundle of x and y.

Correct A. $ x = 10, y = 5 $

B. $ x = 5, y = 10 $

C. $ x = 20, y = 2 $

D. $ x = 15, y = 3 $

Correct Answer: A

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Question 18

A firm's production function is given by Q = 3L^0.5K^0.5. If the firm's current input prices are w = 15 and r = 30, and it currently uses L = 6 and K = 12, calculate the firm's current total \cost.

A. ₦2,160

Correct B. ₦2,520

C. ₦2,880

D. ₦3,240

Correct Answer: B

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Question 19

Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, and it currently uses L = 4 and K = 9, calculate the firm's current total revenue.

A. ₦1,680

B. ₦1,920

Correct C. ₦2,160

D. ₦2,400

Correct Answer: C

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Question 20

A consumer's utility function is given by U = 2x^0.5y^0.5. If the consumer's income is ₦1,000 and the prices of x and y are ₦10 and ₦20 respectively, find the consumer's optimal bundle of x and y.

Correct A. $ x = 10, y = 5 $

B. $ x = 5, y = 10 $

C. $ x = 20, y = 2 $

D. $ x = 15, y = 3 $

Correct Answer: A

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Question 21

The concept of scarcity implies that the needs and wants of individuals are unlimited, while the resources available to satisfy these needs and wants are limited. What is the opportunity \cost of choo\sing to produce more of a good that is in high demand, when the resources required to produce it are scarce?

Correct A. The opportunity \cost is the value of the next best alternative foregone.

B. The opportunity \cost is the value of the next best alternative foregone, in terms of the good that is being produced.

C. The opportunity \cost is the value of the next best alternative foregone, in terms of the resources required to produce the good.

D. The opportunity \cost is the value of the next best alternative foregone, in terms of the good that is being produced, and the resources required to produce it.

Correct Answer: A

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Question 22

A firm's demand curve is downward sloping, indicating that as the price of the good increases, the quantity demanded decreases. What is the elasticity of demand for this good?

A. Elastic demand

Correct B. Inelastic demand

C. Unit elastic demand

D. Perfectly inelastic demand

Correct Answer: B

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Question 23

The government of Nigeria has implemented a policy to increase agricultural production and reduce dep\endence on imported food. What is the likely effect of this policy on the agricultural sector?

Correct A. The policy will lead to an increase in agricultural production and a decrease in food imports.

B. The policy will lead to a decrease in agricultural production and an increase in food imports.

C. The policy will have no effect on agricultural production and food imports.

D. The policy will lead to an increase in agricultural production, but an increase in food imports.

Correct Answer: A

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Question 24

A firm is considering investing in a new project that has a high expected return, but also a high level of risk. What is the opportunity \cost of investing in this project?

A. The opportunity \cost is the value of the next best alternative foregone.

B. The opportunity \cost is the value of the next best alternative foregone, in terms of the expected return.

C. The opportunity \cost is the value of the next best alternative foregone, in terms of the risk.

Correct D. The opportunity \cost is the value of the next best alternative foregone, in terms of the expected return and the risk.

Correct Answer: D

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Question 25

The government of Nigeria has implemented a policy to increase industrial production and reduce dep\endence on imported goods. What is the likely effect of this policy on the industrial sector?

Correct A. The policy will lead to an increase in industrial production and a decrease in imports.

B. The policy will lead to a decrease in industrial production and an increase in imports.

C. The policy will have no effect on industrial production and imports.

D. The policy will lead to an increase in industrial production, but an increase in imports.

Correct Answer: A

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POST UTME NOUN 2022 Economics | Objective

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