Practice post utme ui economics 2017 Past Questions

Question 1

A firm's total revenue (TR) is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm sells 20 units, what is the total revenue?

Correct A. ₦1,800

B. ₦2,000

C. ₦2,200

D. ₦2,400

Correct Answer: A

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, where x and y are the quantities of two goods consumed. If the consumer's income is ₦1,000 and the prices of the two goods are ₦50 and ₦75 respectively, what is the consumer's optimal bundle?

Correct A. (10, 5)

B. (15, 3)

C. (20, 2)

D. (25, 1)

Correct Answer: A

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

Question 3

A firm's marginal \cost (MC) is given by the equation MC = 2x + 5, where x is the number of units produced. If the firm produces 15 units, what is the marginal \cost?

A. ₦35

B. ₦40

Correct C. ₦45

D. ₦50

Correct Answer: C

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

Question 4

A country's GDP is given by the equation GDP = C + I + G + $ X - M $, where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP is ₦5,000 billion, consumption is ₦1,500 billion, investment is ₦500 billion, government sp\ending is ₦1,000 billion, exports are ₦1,200 billion, and imports are ₦800 billion, what is the value of X?

A. ₦1,200

Correct B. ₦1,500

C. ₦1,800

D. ₦2,000

Correct Answer: B

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

Question 5

A firm's demand function is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the firm wants to sell 50 units, what price should it charge?

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 6

The Nigerian government has implemented a policy to increase agricultural production by providing subsidies to farmers. However, the policy has been criticized for being inefficient and wasteful. What is the opportunity \cost of this policy?

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

B. The opportunity \cost is the value of the resources that could have been used for other purposes.

C. The opportunity \cost is the value of the resources that could have been used for other purposes, but are now being used for agricultural production.

Correct D. The opportunity \cost is the value of the resources that could have been used for other purposes, but are now being wasted due to inefficiency.

Correct Answer: D

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

Question 7

A firm is producing a good with a total revenue of ₦100,000 and a total \cost of ₦80,000. What is the profit of the firm?

Correct A. ₦20,000

B. ₦30,000

C. ₦40,000

D. ₦50,000

Correct Answer: A

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

Question 8

The Nigerian government has implemented a policy to increase industrial production by providing tax incentives to firms. However, the policy has been criticized for being regressive and unfair. What is the opportunity \cost of this policy?

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

B. The opportunity \cost is the value of the resources that could have been used for other purposes.

C. The opportunity \cost is the value of the resources that could have been used for other purposes, but are now being used for industrial production.

Correct D. The opportunity \cost is the value of the resources that could have been used for other purposes, but are now being wasted due to inefficiency.

Correct Answer: D

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

Question 9

A firm is producing a good with a total revenue of ₦120,000 and a total \cost of ₦100,000. What is the profit of the firm?

Correct A. ₦20,000

B. ₦30,000

C. ₦40,000

D. ₦50,000

Correct Answer: A

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

Question 10

The Nigerian government has implemented a policy to increase agricultural production by providing subsidies to farmers. However, the policy has been criticized for being inefficient and wasteful. What is the opportunity \cost of this policy?

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

B. The opportunity \cost is the value of the resources that could have been used for other purposes.

C. The opportunity \cost is the value of the resources that could have been used for other purposes, but are now being used for agricultural production.

Correct D. The opportunity \cost is the value of the resources that could have been used for other purposes, but are now being wasted due to inefficiency.

Correct Answer: D

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

Question 11

A government imposes a tax on a good that is perfectly inelastic in demand. What will be the effect on the equilibrium price and quantity of the good?

Correct A. The equilibrium price will increase, and the equilibrium quantity will decrease.

B. The equilibrium price will decrease, and the equilibrium quantity will increase.

C. The equilibrium price will increase, and the equilibrium quantity will remain the same.

D. The equilibrium price will decrease, and the equilibrium quantity will decrease.

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 = 2L^0.5K^0.5. If the price of labor increases by 20% and the price of capital remains cons\tant, what will be the effect on the firm's short-run supply curve?

A. The short-run supply curve will shift to the left.

Correct B. The short-run supply curve will shift to the right.

C. The short-run supply curve will remain unchanged.

D. The short-run supply curve will shift upwards.

Correct Answer: B

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

Question 13

A country's GDP is given by the equation GDP = C + I + G + $ X - M $. If the country's consumption is 100, investment is 50, government sp\ending is 200, exports are 150, and imports are 100, what is the country's GDP?

A. 300

B. 400

C. 500

D. 600

Correct Answer: 500

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

Question 14

A firm's demand curve is given by the equation Q = 100 - 2P. If the firm's production \cost is 50, what is the firm's profit-maximizing price?

A. 20

B. 30

C. 40

D. 50

Correct Answer: 30

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

Question 15

A government imposes a tax on a good that is perfectly elastic in supply. What will be the effect on the equilibrium price and quantity of the good?

A. The equilibrium price will increase, and the equilibrium quantity will decrease.

Correct B. The equilibrium price will decrease, and the equilibrium quantity will increase.

C. The equilibrium price will increase, and the equilibrium quantity will remain the same.

D. The equilibrium price will decrease, and the equilibrium quantity will decrease.

Correct Answer: B

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

Question 16

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 percentage change in quantity demanded when the price increases by 10%?

Correct A. -20%

B. -10%

C. 0%

D. 10%

Correct Answer: A

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

Question 17

A consumer has the following 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 $10, what is the optimal bundle of x and y?

A. (2,2)

Correct B. (3,1)

C. (4,0)

D. (0,4)

Correct Answer: B

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

Question 18

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 2, what is the percentage change in quantity supplied when the price increases by 20%?

A. 40%

B. 50%

Correct C. 60%

D. 80%

Correct Answer: C

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

Question 19

A country's balance of payments is given by the equation BOP = X - M, where BOP is the balance of payments, 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. $40

C. $60

D. $80

Correct Answer: A

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

Question 20

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

A. 20

B. 25

Correct C. 30

D. 35

Correct Answer: C

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

Question 21

A firm's \cost function is given by ( C(x) = 2x^2 + 5x + 10 ). If the firm's revenue function is given by ( R(x) = 3x^2 - 2x + 15 ), find the profit-maximizing output level.

A. $ x = 1 $

Correct B. $ x = 2 $

C. $ x = 3 $

D. $ x = 4 $

Correct Answer: B

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

Question 22

A consumer's utility function is given by ( U(x,y) = 2x + 3y ). If the consumer's budget constraint is given by $ 2x + 3y = 12 $, find the consumer's optimal consumption bundle.

A. $ x = 2, y = 4 $

Correct B. $ x = 3, y = 3 $

C. $ x = 4, y = 2 $

D. $ x = 5, y = 1 $

Correct Answer: B

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

Question 23

A country's balance of payments account is given by the following table:\n\n| Category | Debit | Credit |\n| --- | --- | --- |\n| Current Account | 100 | 150 |\n| Capital Account | 50 | 20 |\n| Financial Account | 200 | 300 |\n| Errors and Omissions | 10 | 5 |\n\nFind the country's net foreign exchange earnings.

Correct A. ₦150

B. ₦200

C. ₦250

D. ₦300

Correct Answer: A

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

Question 24

A firm's money market portfolio is given by the following table:\n\n| Asset | Quantity | Price |\n| --- | --- | --- |\n| Cash | 1000 | ₦10 |\n| Treasury Bills | 500 | ₦20 |\n| Commercial Paper | 200 | ₦30 |\n\nFind the firm's total cash outlay.

A. ₦25000

B. ₦30000

Correct C. ₦35000

D. ₦40000

Correct Answer: C

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

Question 25

A country's inflation rate is given by the following equation:\n\n$ pi = 2 + 0.5y $, where ( y ) is the growth rate of the money supply.\n\nIf the inflation rate is 10%, find the growth rate of the money supply.

A. 5%

Correct B. 10%

C. 15%

D. 20%

Correct Answer: B

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

POST UTME UI 2017 Economics | Objective

Master the Exam!

Help others prepare! Share this practice hub: