Practice post utme unilorin economics 2019 Past Questions

Question 1

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 multinational corporation produces goods in a foreign country and exports them to the home country, how would this affect the GDP of the home country?

A. The GDP would increase because the corporation is producing goods within the country's borders.

B. The GDP would decrease because the corporation is producing goods in a foreign country.

Correct C. The GDP would remain unchanged because the corporation is exporting goods to the home country.

D. The GDP would increase because the corporation is creating jobs in the home country.

Correct Answer: C

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

Question 2

A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will happen to its quantity demanded?

A. The quantity demanded will increase because the firm is increa\sing its price.

Correct B. The quantity demanded will decrease because the firm is increa\sing its price.

C. The quantity demanded will remain unchanged because the firm is increa\sing its price.

D. The quantity demanded will increase because the firm is decrea\sing its price.

Correct Answer: B

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

Question 3

A consumer's indifference curve is represented by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is $100 and the prices of the two goods are $5 and $10 respectively, what is the consumer's optimal bundle?

A. (10, 10)

B. (20, 5)

Correct C. (15, 7.5)

D. (12, 8)

Correct Answer: C

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

Question 4

A firm's \cost function is given by ( C(q) = 10 + 2q + 3q^2 ). If the firm produces 5 units of output, what is its total \cost?

A. $35

Correct B. $40

C. $45

D. $50

Correct Answer: B

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

Question 5

A country's national income is calculated as the sum of its wages, rents, profits, and interest. If the country's wages are $100, rents are $50, profits are $20, and interest is $10, what is the country's national income?

A. $180

B. $190

Correct C. $200

D. $210

Correct Answer: C

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

Question 6

Consider a closed economy with a GDP of ₦100 billion and a GNP of ₦120 billion. If the net factor income from abroad is ₦20 billion, what is the value of the net foreign investment?

A. ₦10 billion

Correct B. ₦20 billion

C. ₦30 billion

D. ₦40 billion

Correct Answer: B

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

Question 7

A firm's production function is given by Q = 100L^$ 1/2 $K^$ 1/2 $, where Q is output, L is labor, and K is capital. If the firm's labor and capital are 100 units each, what is the marginal product of labor?

A. 5 units

Correct B. 10 units

C. 15 units

D. 20 units

Correct Answer: B

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

Question 8

A country's balance of payments is given by the following equation: BOP = X - M + $ F - I $, where BOP is the balance of payments, X is exports, M is imports, F is foreign investment, and I is interest payments. If the country's exports are ₦100 billion, imports are ₦80 billion, foreign investment is ₦20 billion, and interest payments are ₦10 billion, what is the balance of payments?

A. ₦30 billion

B. ₦40 billion

Correct C. ₦50 billion

D. ₦60 billion

Correct Answer: C

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

Question 9

A consumer's utility function is given by U = 2x + 3y, where U is utility, x is the quantity of good x, and y is the quantity of good y. If the consumer's income is ₦100 and the prices of good x and good y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?

A. x = 10, y = 5

Correct B. x = 15, y = 3

C. x = 20, y = 2

D. x = 25, y = 1

Correct Answer: B

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

Question 10

A firm's demand function for a good is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's marginal revenue is ₦50, what is the firm's optimal price?

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 11

The concept of returns to scale in production theory suggests that as the scale of production increases, the marginal product of labor will eventually decrease. Which of the following is a correct example of a firm that exhibits decrea\sing returns to scale?

A. A firm that produces 100 units of output with 10 units of labor

B. A firm that produces 1000 units of output with 100 units of labor

Correct C. A firm that produces 1000 units of output with 10 units of labor

D. A firm that produces 100 units of output with 100 units of labor

Correct Answer: C

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

Question 12

A monopolistically competitive firm faces a demand curve that is downward sloping and a supply curve that is upward sloping. Which of the following is a characteristic of the firm's short-run equilibrium?

Correct A. The firm is producing at a level of output where price equals marginal revenue

B. The firm is producing at a level of output where price equals marginal \cost

C. The firm is producing at a level of output where price equals average revenue

D. The firm is producing at a level of output where price equals average \cost

Correct Answer: A

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

Question 13

A country's balance of payments account is in equilibrium when the current account is equal to the capital account. Which of the following is a correct example of a transaction that would increase the current account?

A. A Nigerian citizen purchases a car from a foreign company

Correct B. A foreign company purchases a car from a Nigerian citizen

C. A Nigerian citizen invests in a foreign company

D. A foreign company invests in a Nigerian company

Correct Answer: B

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

Question 14

A firm's \cost function is given by C(q) = 100 + 2q + 0.5q^2. Which of the following is a correct statement about the firm's \cost function?

A. The firm's \cost function is a linear function

Correct B. The firm's \cost function is a quadratic function

C. The firm's \cost function is a cubic function

D. The firm's \cost function is a \logarithmic function

Correct Answer: B

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

Question 15

A country's agricultural sector is characterized by a high degree of seasonality, with most crops being harvested during a specific period of the year. Which of the following is a correct example of a policy that would help to mitigate the effects of seasonality on agricultural production?

A. Providing subsidies to farmers during the off-season

B. Providing training to farmers on new farming techniques

C. Providing credit to farmers during the off-season

Correct D. Providing storage facilities to farmers during the off-season

Correct Answer: D

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

Question 16

The government of Nigeria has introduced a new policy to increase agricultural production by providing subsidies to farmers. However, the policy has been criticized for being too expensive and not effectively targeting the most vulnerable farmers. U\sing the concept of opportunity \cost, explain why the government's policy may not be the most efficient way to increase agricultural production.

Correct A. The government's policy is too expensive and not effectively targeting the most vulnerable farmers.

B. The policy is not providing enough subsidies to farmers, leading to a decrease in agricultural production.

C. The policy is not addres\sing the root causes of low agricultural production, such as lack of access to credit and markets.

D. The policy is not providing enough support to farmers in terms of techno\logy and training.

Correct Answer: A

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

Question 17

A consumer is faced with the following utility function: U(x,y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, find the consumer's optimal bundle of x and y.

Correct A. x = 40, y = 20

B. x = 20, y = 40

C. x = 30, y = 30

D. x = 50, y = 10

Correct Answer: A

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

Question 18

The Central Bank of Nigeria has increased the reserve requirement for commercial banks from 10% to 15%. U\sing the concept of money supply, explain how this change will affect the money supply in the economy.

A. The money supply will decrease by 5%.

Correct B. The money supply will increase by 5%.

C. The money supply will remain the same.

D. The money supply will decrease by 10%.

Correct Answer: B

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

Question 19

The government of Nigeria has introduced a new tax policy to increase revenue. The policy includes a 10% tax on all goods and services. U\sing the concept of tax incidence, explain how this tax will affect the consumers and producers of goods and services.

A. The consumers will bear the entire burden of the tax.

B. The producers will bear the entire burden of the tax.

Correct C. The consumers and producers will share the burden of the tax equally.

D. The tax will have no effect on the consumers and producers.

Correct Answer: C

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

Question 20

A firm is producing a good u\sing the production function Q = 2L + 3K. If the prices of labor and capital are ₦10 and ₦20 respectively, and the firm's budget is ₦1000, find the firm's optimal input mix of labor and capital.

Correct A. L = 20, K = 30

B. L = 30, K = 20

C. L = 40, K = 10

D. L = 10, K = 40

Correct Answer: A

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

Question 21

The government of Nigeria has introduced a new policy to increase agricultural production by providing subsidies to farmers. However, the policy has been criticized for being too expensive and not effectively targeting the most vulnerable farmers. U\sing the concept of opportunity \cost, explain why the government's policy may not be the most efficient way to increase agricultural production.

Correct A. The government's policy is too expensive and not effectively targeting the most vulnerable farmers.

B. The policy is not providing enough subsidies to farmers, leading to a decrease in agricultural production.

C. The policy is not addres\sing the root causes of low agricultural production, such as lack of access to credit and markets.

D. The policy is not providing enough support to farmers in terms of techno\logy and training.

Correct Answer: A

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

Question 22

A consumer is faced with the following utility function: U(x,y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, find the consumer's optimal bundle of x and y.

Correct A. x = 40, y = 20

B. x = 20, y = 40

C. x = 30, y = 30

D. x = 50, y = 10

Correct Answer: A

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

Question 23

The Central Bank of Nigeria has increased the reserve requirement for commercial banks from 10% to 15%. U\sing the concept of money supply, explain how this change will affect the money supply in the economy.

A. The money supply will decrease by 5%.

Correct B. The money supply will increase by 5%.

C. The money supply will remain the same.

D. The money supply will decrease by 10%.

Correct Answer: B

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

Question 24

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

B. ₦75

Correct C. ₦100

D. ₦125

Correct Answer: C

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

Question 25

A firm is producing a good with a production function Q = 2L^2 + 3K, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm is currently producing 100 units of output with 10 units of labor and 5 units of capital, find the marginal product of labor.

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

POST UTME UNILORIN 2019 Economics | Objective

Master the Exam!

Help others prepare! Share this practice hub: