Practice post utme unilag economics 2023 Past Questions

Question 1

A country's inflation rate is 5% per annum, and its nominal interest rate is 10% per annum. What is the real interest rate?

A. 5%

B. 10%

C. 15%

D. 20%

Question 2

A country's GDP is calculated as the sum of the value of all final goods and services produced within its borders. However, if a country imports a good and then exports it after adding value to it, how should this be accounted for in the GDP calculation?

A. The value added to the good should be included in the GDP calculation

B. The value added to the good should not be included in the GDP calculation

C. The value of the good should be included in the GDP calculation, but the value added should not

D. The value of the good should not be included in the GDP calculation, but the value added should

Question 3

A country's GDP is given by 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, consumption is 30, investment is 20, government sp\ending is 10, exports are 20, and imports are 10, what is the value of the country's net exports?

A. 10

B. 20

C. 30

D. 40

Question 4

A country's balance of payments account is given by the following equation: BOP = X - M - $ F - I $, where BOP is the balance of payments, X is the value of exports, M is the value of imports, F is the value of foreign investment, and I is the value of domestic investment. If the value of exports is ₦500 billion, the value of imports is ₦600 billion, the value of foreign investment is ₦200 billion, and the value of domestic investment is ₦300 billion, determine the balance of payments.

A. ₦-100 billion

B. ₦100 billion

C. ₦200 billion

D. ₦300 billion

Question 5

A farmer in Nigeria produces maize and soybeans. The production function for maize is Q = 1000 + 20L - 0.5L^2, where Q is the quantity of maize produced and L is the labor used. If the farmer uses 100 units of labor, how many units of maize will be produced?

A. 900

B. 1000

C. 1100

D. 1200

Question 6

A firm is operating in a perfectly competitive market with a production function given by Q = 2L^0.5K^0.5. If the price of the good is $10 and the wage rate is $5 per unit of labor, what is the optimal level of labor to hire?

A. 4 units

B. 6 units

C. 8 units

D. 10 units

Question 7

Determine the price elasticity of demand for a product whose demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the price increases by 10% and the quantity demanded decreases by 15%, calculate the price elasticity of demand.

A. -0.15

B. 0.15

C. 1.5

D. -1.5

Question 8

A firm is considering whether to produce a good or to import it from another country. The firm's production \costs are $100 per unit, and the import price is $120 per unit. However, the firm also has to pay a 10% tariff on the imported good. What is the effective price of the imported good to the firm?

A. $132

B. $140

C. $120

D. $108

Question 9

A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, determine the optimal quantities of the two goods to consume.

A. x = 100, y = 50

B. x = 50, y = 100

C. x = 75, y = 75

D. x = 25, y = 25

Question 10

The government of Nigeria has introduced a policy to increase the production of rice in the country. The policy includes providing subsidies to farmers and increa\sing the supply of fertilizers. What is the likely effect of this policy on the price of rice?

A. The price of rice will increase

B. The price of rice will decrease

C. The price of rice will remain the same

D. The price of rice will fluctuate

Question 11

A firm is considering investing in a new project with a \cost of $100,000 and a potential return of $120,000. If the firm's \cost of capital is 10%, what is the net present value (NPV) of the project?

A. $10,000

B. $20,000

C. $30,000

D. $40,000

Question 12

The Marshall-Lerner condition states that if the sum of the elasticities of demand for exports and imports is greater than 1, then a devaluation of the currency will lead to an improvement in the balance of payments. What is the implication of this condition for a country with an elasticity of demand for exports of 0.8 and an elasticity of demand for imports of 1.2?

A. The country will experience a deterioration in its balance of payments

B. The country will experience no change in its balance of payments

C. The country will experience an improvement in its balance of payments

D. The country will experience a worsening of its trade deficit

Question 13

A country's balance of payments is given by the following equation: BOP = X - M - I. If the country's exports (X) are $100 billion, imports (M) are $80 billion, and investment (I) is $20 billion, what is the balance of payments?

A. $20 billion

B. $30 billion

C. $40 billion

D. $50 billion

Question 14

A firm produces two goods, A and B. The production function for good A is Q_A = 100 + 20L - 0.5L^2, where Q_A is the quantity of good A produced and L is the labor used. The production function for good B is Q_B = 50 + 10L - 0.2L^2, where Q_B is the quantity of good B produced and L is the labor used. If the firm uses 50 units of labor, how many units of good A and good B will be produced?

A. Q_A = 900, Q_B = 400

B. Q_A = 1000, Q_B = 500

C. Q_A = 1100, Q_B = 600

D. Q_A = 1200, Q_B = 700

Question 15

A country's GDP is increa\sing at a rate of 5% per annum. Which of the following is a possible explanation for the increase in GDP?

A. The country has experienced an increase in population.

B. The country has experienced an increase in the capital stock.

C. The country has experienced an increase in the labor force.

D. The country has experienced an increase in the price level.

POST UTME UNILAG 2023 Economics | Objective

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