Practice post utme uniben economics 2019 Past Questions

Question 1

A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where L is labor and K is capital. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the firm's current output?

A. 32

B. 48

Correct C. 64

D. 80

Correct Answer: C

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Question 2

A government imposes a tax on a firm's output. The firm's supply curve shifts to the left, and the new supply curve is given by Q = 2p - 10. If the market price is p = 5, what is the firm's new output?

A. 0

Correct B. 5

C. 10

D. 15

Correct Answer: B

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Question 3

A consumer's budget constraint is given by 2x + 3y = 12, where x is the number of units of good x and y is the number of units of good y. If the consumer's current consumption is x = 2 and y = 2, what is the consumer's current utility?

A. 8

Correct B. 12

C. 16

D. 20

Correct Answer: B

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Question 4

A firm's \cost function is given by C = 2L + 3K, where L is labor and K is capital. If the firm's current labor and capital inputs are L = 4 and K = 6, respectively, what is the firm's current \cost?

A. 20

B. 30

Correct C. 40

D. 50

Correct Answer: C

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Question 5

A government imposes a tax on a firm's output. The firm's supply curve shifts to the left, and the new supply curve is given by Q = 2p - 10. If the market price is p = 5, what is the firm's new output?

A. 0

Correct B. 5

C. 10

D. 15

Correct Answer: B

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Question 6

A government imposes a tax on imports to raise revenue. If the tax is increased, what will happen to the equilibrium price and quantity of the imported good?

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

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

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

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

Correct Answer: A

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Question 7

A monopolist faces a demand curve given by Q = 100 - 2P. The marginal revenue function is given by MR = 50 - 2Q. Find the profit-maximizing level of output.

A. Q = 50

Correct B. Q = 75

C. Q = 25

D. Q = 100

Correct Answer: B

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Question 8

A country's balance of payments is given by the following equation: BOP = X - M - \( I - S \). If the country's exports (X) increase by 10%, and imports (M) decrease by 5%, what will happen to the balance of payments?

Correct A. The balance of payments will increase.

B. The balance of payments will decrease.

C. The balance of payments will remain the same.

D. The balance of payments will increase by 5%.

Correct Answer: A

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Question 9

A firm has a total revenue function given by TR = 100Q - 2Q^2. If the firm's fixed \cost is ₦500, and its variable \cost is ₦20 per unit, what is the profit-maximizing level of output?

A. Q = 20

Correct B. Q = 30

C. Q = 40

D. Q = 50

Correct Answer: B

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Question 10

A perfectly competitive market has a demand curve given by P = 100 - Q. If the market supply curve is given by Q = 20 + 2P, what is the equilibrium price and quantity?

Correct A. P = 50, Q = 30

B. P = 60, Q = 40

C. P = 70, Q = 50

D. P = 80, Q = 60

Correct Answer: A

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Question 11

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, find the price at which the quantity demanded is 60 units.

A. ₦50

Correct B. ₦75

C. ₦100

D. ₦125

Correct Answer: B

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Question 12

A firm produces two goods, X and Y, u\sing two inputs, labor and capital. The production functions are given by Qx = 2L + 3K and Qy = L + 2K, where Qx and Qy are the quantities of X and Y produced, and L and K are the quantities of labor and capital used. If the firm produces 10 units of X and 8 units of Y, find the total \cost of production.

A. ₦500

B. ₦750

Correct C. ₦1000

D. ₦1250

Correct Answer: C

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Question 13

The government of a country imposes a tax of ₦10 per unit on a good. The supply function of the good is given by Qs = 100 + 2P, where Qs is the quantity supplied and P is the price. If the demand function is given by Qd = 100 - 2P, find the equilibrium price and quantity.

A. ₦50, 80 units

Correct B. ₦75, 60 units

C. ₦100, 40 units

D. ₦125, 20 units

Correct Answer: B

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Question 14

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 ₦100 billion, and the values of C, I, G, X, and M are ₦50 billion, ₦20 billion, ₦15 billion, ₦30 billion, and ₦25 billion respectively, find the value of net exports.

A. ₦5 billion

B. ₦10 billion

Correct C. ₦15 billion

D. ₦20 billion

Correct Answer: C

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Question 15

A firm has a production function given by Q = 2L + 3K, where Q is the quantity produced, L is the quantity of labor used, and K is the quantity of capital used. If the firm uses 10 units of labor and 5 units of capital, find the total product.

A. 20 units

Correct B. 30 units

C. 40 units

D. 50 units

Correct Answer: B

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Question 16

A country's balance of payments is in equilibrium when the value of its imports equals the value of its exports. True or False?

A. True

Correct B. False

C. It dep\ends on the type of trade

D. It dep\ends on the country's economic conditions

Correct Answer: B

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Question 17

A perfectly competitive market has a supply curve that is upward-sloping. True or False?

A. True

Correct B. False

C. It dep\ends on the market conditions

D. It dep\ends on the type of good

Correct Answer: B

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Question 18

A firm's production function is given by Q = 2L^0.5K^0.5. What is the returns to scale?

Correct A. Increa\sing returns to scale

B. Decrea\sing returns to scale

C. Cons\tant returns to scale

D. No returns to scale

Correct Answer: A

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Question 19

A consumer's budget constraint is given by P1Q1 + P2Q2 = I. What is the opportunity \cost of good 1?

A. P1

B. P2

Correct C. \frac{P1}{P2}

D. \frac{P2}{P1}

Correct Answer: C

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Question 20

A monopolist's demand curve is given by Q = 100 - 2P. What is the price elasticity of demand?

A. Inelastic

B. Unit elastic

Correct C. Elastic

D. Perfectly elastic

Correct Answer: C

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Question 21

In a perfectly competitive market, the demand curve for a firm's product is its

Correct A. marginal revenue curve

B. marginal \cost curve

C. average revenue curve

D. average \cost curve

Correct Answer: A

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Question 22

A country's balance of payments account is in equilibrium when its

Correct A. current account deficit equals its capital account surplus

B. current account surplus equals its capital account deficit

C. current account deficit equals its trade deficit

D. current account surplus equals its trade surplus

Correct Answer: A

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Question 23

The money supply in an economy is determined by the

A. central bank's monetary policy

Correct B. commercial banks' l\ending and borrowing activities

C. government's fiscal policy

D. foreign exchange market

Correct Answer: B

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Question 24

A firm's demand curve for a variable input is its

Correct A. marginal revenue product curve

B. marginal \cost curve

C. average revenue product curve

D. average \cost curve

Correct Answer: A

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Question 25

The law of diminishing marginal utility states that as the quantity of a good consumed increases, the

A. marginal utility of the good increases

Correct B. marginal utility of the good decreases

C. total utility of the good increases

D. total utility of the good decreases

Correct Answer: B

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