Practice post utme uniosun economics 2018 Past Questions

Question 1

A consumer's indifference curve is represented by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the optimal bundle of x and y?

Correct A. (100, 50)

B. (50, 100)

C. (200, 0)

D. (0, 200)

Correct Answer: A

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Question 2

A monopolist faces a demand curve given by \( Q = 100 - 2P \) and a \cost function \( C = 20 + 5Q \). If the firm's profit-maximizing output is 40 units, what is the price at which it will sell?

A. ₦20

Correct B. ₦40

C. ₦60

D. ₦80

Correct Answer: B

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Question 3

A firm operates under a production function \( Q = 2L^2 + 3K \). If the firm's output is 20 units, and the price of labor is ₦10 per unit and the price of capital is ₦20 per unit, what is the optimal combination of labor and capital?

Correct A. (5, 10)

B. (10, 5)

C. (15, 0)

D. (0, 15)

Correct Answer: A

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Question 4

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

A. Q = 100 - 2P

Correct B. Q = 95 - 2P

C. Q = 90 - 2P

D. Q = 85 - 2P

Correct Answer: B

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Question 5

A firm's revenue function is given by \( R = 100P - 2P^2 \). If the firm's output is 20 units, what is the price at which it will sell?

A. ₦10

Correct B. ₦20

C. ₦30

D. ₦40

Correct Answer: B

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Question 6

Consider a production function given by \( Q = 1000K^0.4L^0.6 \), where Q is output, K is capital and L is labor. If the price of capital is ₦1000 per unit and the price of labor is ₦500 per unit, calculate the value of the marginal product of labor (MPL) at a point where K = 10 units and L = 15 units.

A. ₦150

B. ₦200

Correct C. ₦250

D. ₦300

Correct Answer: C

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Question 7

A government budget is given by the equation \( B = 1000 + 0.2Y \), where B is the budget and Y is the national income. If the national income is ₦10,000, what is the value of the budget?

A. ₦2000

B. ₦2200

Correct C. ₦2400

D. ₦2600

Correct Answer: C

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Question 8

A firm's production function is given by \( Q = 2L^0.5K^0.5 \), where Q is output, L is labor and K is capital. If the price of labor is ₦500 per unit and the price of capital is ₦1000 per unit, calculate the value of the marginal product of labor (MPL) at a point where L = 16 units and K = 9 units.

A. ₦120

B. ₦150

C. ₦180

Correct D. ₦200

Correct Answer: D

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Question 9

Consider a production function given by \( Q = 1000K^0.4L^0.6 \), where Q is output, K is capital and L is labor. If the price of capital is ₦1000 per unit and the price of labor is ₦500 per unit, calculate the value of the marginal product of capital (MPC) at a point where K = 10 units and L = 15 units.

A. ₦200

B. ₦250

Correct C. ₦300

D. ₦350

Correct Answer: C

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Question 10

A government budget is given by the equation \( B = 1000 + 0.2Y \), where B is the budget and Y is the national income. If the national income is ₦10,000, what is the value of the budget?

A. ₦2000

B. ₦2200

Correct C. ₦2400

D. ₦2600

Correct Answer: C

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Question 11

The Marshall-Lerner condition states that a country will experience an improvement in its balance of payments if the sum of the percentage changes in its export and import prices is greater than the percentage change in its exchange rate. Which of the following scenarios would lead to an improvement in the balance of payments?

Correct A. An increase in the price of exports and a decrease in the price of imports

B. A decrease in the price of exports and an increase in the price of imports

C. An increase in the price of exports and an increase in the price of imports

D. A decrease in the price of exports and a decrease in the price of imports

Correct Answer: A

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Question 12

A firm's demand curve is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price is increased by 10%, what is the percentage change in the quantity demanded?

A. -20%

Correct B. -10%

C. 0%

D. 10%

Correct Answer: B

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Question 13

A country's GDP can be calculated u\sing the following formula: 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 consumption is 100, investment is 50, government sp\ending is 75, exports are 150, and imports are 100, what is the country's GDP?

A. 225

B. 250

Correct C. 275

D. 300

Correct Answer: C

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Question 14

A consumer's utility function is given by the equation U = 2x + 3y, where x and y are the quantities of two goods consumed. 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 of goods?

Correct A. x = 10, y = 5

B. x = 5, y = 10

C. x = 15, y = 3

D. x = 3, y = 15

Correct Answer: A

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Question 15

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

A. 25

Correct B. 30

C. 35

D. 40

Correct Answer: B

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Question 16

The government of Nigeria has introduced a new policy to increase agricultural production. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing the use of fertilizers. However, the policy also includes a provision to increase the price of fertilizers by 20%. What is the likely effect of this policy on the agricultural sector?

A. The policy will lead to an increase in agricultural production and a decrease in the price of fertilizers.

Correct B. The policy will lead to a decrease in agricultural production and an increase in the price of fertilizers.

C. The policy will have no effect on agricultural production and the price of fertilizers.

D. The policy will lead to an increase in agricultural production and an increase in the price of fertilizers.

Correct Answer: B

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Question 17

A firm is producing a good with a cons\tant elasticity of demand. The demand function is given by Q = 100 - 2P. If the firm increases the price of the good by 10%, what is the percentage change in the quantity demanded?

A. -5%

Correct B. -10%

C. -15%

D. -20%

Correct Answer: B

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Question 18

The government of Nigeria has introduced a new policy to increase the production of a particular good. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing the use of fertilizers. However, the policy also includes a provision to increase the price of the good by 20%. What is the likely effect of this policy on the production of the good?

A. The policy will lead to an increase in the production of the good and a decrease in the price of the good.

Correct B. The policy will lead to a decrease in the production of the good and an increase in the price of the good.

C. The policy will have no effect on the production of the good and the price of the good.

D. The policy will lead to an increase in the production of the good and an increase in the price of the good.

Correct Answer: B

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Question 19

A firm is producing a good with a cons\tant elasticity of demand. The demand function is given by Q = 100 - 2P. If the firm decreases the price of the good by 10%, what is the percentage change in the quantity demanded?

A. 5%

Correct B. 10%

C. 15%

D. 20%

Correct Answer: B

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Question 20

The government of Nigeria has introduced a new policy to increase the production of a particular good. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing the use of fertilizers. However, the policy also includes a provision to decrease the price of the good by 20%. What is the likely effect of this policy on the production of the good?

A. The policy will lead to an increase in the production of the good and an increase in the price of the good.

B. The policy will lead to a decrease in the production of the good and a decrease in the price of the good.

C. The policy will have no effect on the production of the good and the price of the good.

Correct D. The policy will lead to an increase in the production of the good and a decrease in the price of the good.

Correct Answer: D

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Question 21

Suppose 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 supply of the product is given by the equation Qs = 2P - 100, where Qs is the quantity supplied, find the equilibrium price and quantity.

A. ₦50

B. ₦75

Correct C. ₦100

D. ₦125

Correct Answer: C

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Question 22

A country's balance of payments is given by the equation BOP = X - M, where X is the value of exports and M is the value of imports. If the value of exports is ₦100 billion and the value of imports is ₦120 billion, find the balance of payments.

A. ₦20 billion

Correct B. ₦40 billion

C. ₦60 billion

D. ₦80 billion

Correct Answer: B

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Question 23

A firm's demand for a resource is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the supply of the resource is given by the equation Qs = 2P - 100, where Qs is the quantity supplied, find the elasticity of demand.

A. 1

Correct B. 2

C. 3

D. 4

Correct Answer: B

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Question 24

A consumer's utility function is given by the equation U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are ₦5 and ₦10 respectively, find the consumer's budget constraint.

A. ₦15

Correct B. ₦20

C. ₦25

D. ₦30

Correct Answer: B

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Question 25

A government's budget is given by the equation B = T + I, where B is the budget, T is the tax revenue, and I is the interest payment. If the tax revenue is ₦100 billion and the interest payment is ₦50 billion, find the budget.

A. ₦100 billion

Correct B. ₦150 billion

C. ₦200 billion

D. ₦250 billion

Correct Answer: B

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