Practice post utme uniben economics 2017 Past Questions

Question 1

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

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

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Question 2

A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost is MC = 10. What is the profit-maximizing price?

A. ₦20

Correct B. ₦30

C. ₦40

D. ₦50

Correct Answer: B

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Question 3

A consumer has a utility function U = 2x + 3y, where x and y are the quantities of two goods. The prices of the goods are $2 and $3, respectively. The consumer's income is $10. What is the consumer's optimal bundle?

Correct A. (2, 2)

B. (3, 1)

C. (4, 0)

D. (0, 4)

Correct Answer: A

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Question 4

A firm has a production function Q = 3L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. Determine the returns to scale for the firm.

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

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Question 5

A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost is MC = 10. What is the profit-maximizing quantity?

A. 50

B. 75

Correct C. 100

D. 125

Correct Answer: C

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Question 6

Determine the price elasticity of demand for a product with a price elasticity of -2 and a percentage change in quantity demanded of 5%.

Correct A. -0.1

B. -0.2

C. -0.5

D. -1

Correct Answer: A

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Question 7

A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function of C = 20 + 5Q. Determine the profit-maximizing price and quantity.

A. P = 40, Q = 30

Correct B. P = 50, Q = 25

C. P = 60, Q = 20

D. P = 70, Q = 15

Correct Answer: B

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Question 8

Agricultural production in Nigeria is characterized by a high degree of seasonality. U\sing a diagram, explain how this affects the supply curve.

Correct A. The supply curve shifts to the left during the off-season.

B. The supply curve shifts to the right during the off-season.

C. The supply curve remains unchanged throughout the year.

D. The supply curve shifts to the left during the on-season.

Correct Answer: A

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Question 9

A consumer's utility function is given by U = 2x + 3y. Determine the marginal utility of x and y.

Correct A. MUx = 2, MUy = 3

B. MUx = 3, MUy = 2

C. MUx = 4, MUy = 1

D. MUx = 1, MUy = 4

Correct Answer: A

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Question 10

A firm's production function is given by Q = 2L + 3K. Determine the marginal product of labor and capital.

Correct A. MP_L = 2, MP_K = 3

B. MP_L = 3, MP_K = 2

C. MP_L = 4, MP_K = 1

D. MP_L = 1, MP_K = 4

Correct Answer: A

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Question 11

A firm's revenue function is given by R(x) = 100x - 2x^2. If the firm's marginal revenue is 50 when x = 10, what is the value of the firm's total revenue?

A. ₦500

Correct B. ₦1000

C. ₦1500

D. ₦2000

Correct Answer: B

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Question 12

A consumer's utility function is given by U(x,y) = 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?

A. (10,0)

Correct B. (5,5)

C. (0,10)

D. (15,0)

Correct Answer: B

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Question 13

A country's production possibility frontier is given by the equation 2x + 3y = 15. If the country is currently producing 5 units of x and 3 units of y, what is the opportunity \cost of producing one more unit of x?

A. 1 unit of y

Correct B. 2 units of y

C. 3 units of y

D. 4 units of y

Correct Answer: B

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Question 14

A firm's \cost function is given by C(x) = 100 + 2x^2. If the firm's revenue function is R(x) = 100x - 2x^2, what is the firm's profit function?

Correct A. P(x) = 100x - 4x^2

B. P(x) = 100x - 2x^2

C. P(x) = 100x + 2x^2

D. P(x) = 100x + 4x^2

Correct Answer: A

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Question 15

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

A. ₦20

Correct B. ₦40

C. ₦60

D. ₦80

Correct Answer: B

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Question 16

A firm's revenue function is given by R(x) = 2x^2 + 5x + 1, where x is the number of units produced. If the firm's marginal revenue function is MR(x) = 4x + 5, find the value of x that maximizes revenue.

A. 1

B. 2

Correct C. 3

D. 4

Correct Answer: C

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Question 17

A government imposes a tax on a firm's output. The firm's supply function is given by Q = 2P + 5, where Q is the quantity supplied and P is the price. If the tax is 2 units per unit of output, find the new supply function.

Correct A. Q = 2P + 7

B. Q = 2P + 3

C. Q = 2P + 9

D. Q = 2P + 11

Correct Answer: A

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Question 18

A consumer's budget constraint is given by 2x + 3y = 12, where x and y are the quantities of two goods. If the consumer's indifference curve is given by u(x, y) = 2x + y, find the consumer's optimal bundle.

A. (2, 4)

Correct B. (3, 3)

C. (4, 2)

D. (5, 1)

Correct Answer: B

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Question 19

A firm's production function is given by Q = 2L^2 + 5K, where Q is the quantity produced, L is labor, and K is capital. If the firm's \cost function is given by C(L, K) = 2L + 3K, find the firm's profit-maximizing input bundle.

A. (1, 1)

Correct B. (2, 2)

C. (3, 3)

D. (4, 4)

Correct Answer: B

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Question 20

A government imposes a tax on a firm's output. The firm's supply function is given by Q = 2P + 5, where Q is the quantity supplied and P is the price. If the tax is 2 units per unit of output, find the new supply function.

Correct A. Q = 2P + 7

B. Q = 2P + 3

C. Q = 2P + 9

D. Q = 2P + 11

Correct Answer: A

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Question 21

A monopolistically competitive firm faces a demand curve given by Q = 100 - 2P. The firm's marginal revenue (MR) is given by MR = 200 - 2Q. If the firm's marginal \cost (MC) is cons\tant at ₦50, what is the optimal price (P) at which the firm should produce?

A. ₦75

B. ₦80

Correct C. ₦85

D. ₦90

Correct Answer: C

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Question 22

A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. The consumer's budget constraint is given by 2x + 3y = ₦100. If the consumer's income is ₦100, what is the optimal combination of x and y that maximizes utility?

A. x = 10, y = 20

B. x = 20, y = 10

Correct C. x = 15, y = 15

D. x = 25, y = 5

Correct Answer: C

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Question 23

A firm's \cost function is given by C = 2x^2 + 3x + 10, where x is the quantity produced. If the firm's revenue function is given by R = 4x^2 - 2x + 10, what is the firm's profit function?

Correct A. P = 2x^2 - 5x + 10

B. P = 2x^2 + 5x + 10

C. P = 2x^2 - x + 10

D. P = 2x^2 + x + 10

Correct Answer: A

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Question 24

A country's government imposes a tax on a firm's output. The firm's supply curve is given by Q = 100 - 2P. The tax rate is ₦5 per unit. What is the firm's new supply curve?

Correct A. Q = 100 - 2P - 5

B. Q = 100 - 2P + 5

C. Q = 100 - 2P - 10

D. Q = 100 - 2P + 10

Correct Answer: A

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Question 25

A firm's demand curve is given by Q = 100 - 2P. The firm's marginal revenue (MR) is given by MR = 200 - 2Q. If the firm's marginal \cost (MC) is cons\tant at ₦50, what is the firm's optimal price (P) at which it should produce?

A. ₦75

B. ₦80

Correct C. ₦85

D. ₦90

Correct Answer: C

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