Practice post utme uniport economics 2018 Past Questions

Question 1

The concept of scarcity is closely related to the concept of opportunity \cost. Explain how the opportunity \cost of a choice is determined.

Correct A. The opportunity \cost of a choice is determined by the next best alternative that is given up.

B. The opportunity \cost of a choice is determined by the \cost of the next best alternative.

C. The opportunity \cost of a choice is determined by the benefit of the next best alternative.

D. The opportunity \cost of a choice is determined by the probability of the next best alternative.

Correct Answer: A

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Question 2

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 elasticity of demand is 0.5, find the price at which the quantity demanded is 60.

A. ₦20

Correct B. ₦30

C. ₦40

D. ₦50

Correct Answer: B

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Question 3

The government of Nigeria has set a target of increa\sing the country's GDP by 10% per annum for the next 5 years. If the current GDP is ₦10 trillion, what is the expected GDP in 5 years?

A. ₦18 trillion

B. ₦20 trillion

C. ₦22 trillion

Correct D. ₦24 trillion

Correct Answer: D

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Question 4

A farmer has 100 hectares of land and wants to plant two crops, maize and soybeans. The yield per hectare for maize is 2 tons and for soybeans is 1.5 tons. If the farmer wants to produce a total of 200 tons of maize and soybeans, how many hectares of land should be allocated to each crop?

A. Maize: 60 hectares, Soybeans: 40 hectares

Correct B. Maize: 40 hectares, Soybeans: 60 hectares

C. Maize: 50 hectares, Soybeans: 50 hectares

D. Maize: 30 hectares, Soybeans: 70 hectares

Correct Answer: B

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Question 5

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.

A. ₦20

Correct B. ₦30

C. ₦40

D. ₦50

Correct Answer: B

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Question 6

A firm faces a downward-sloping demand curve and a fixed \cost of ₦100,000. If the price elasticity of demand is -2 and the firm sells 1,000 units at a price of ₦150, the total revenue is ₦150,000. What is the total \cost of producing 1,000 units?

A. ₦200,000

B. ₦250,000

Correct C. ₦300,000

D. ₦350,000

Correct Answer: C

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Question 7

A consumer's utility function is given by U(x, y) = 2x + 3y, where x is the number of units of good X and y is the number of units of good Y. If the consumer's income is ₦1,000 and the prices of good X and good Y are ₦50 and ₦75, respectively, what is the optimal bundle of goods?

A. x = 10, y = 5

Correct B. x = 15, y = 3

C. x = 20, y = 2

D. x = 25, y = 1

Correct Answer: B

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Question 8

A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the number of labor units, and K is the number of capital units. If the firm has 100 labor units and 200 capital units, what is the maximum quantity that can be produced?

A. 50

B. 100

Correct C. 150

D. 200

Correct Answer: C

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Question 9

A government imposes a tax of ₦50 per unit on a good that is sold at a price of ₦100 per unit. If the demand for the good is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price, what is the new equilibrium price and quantity?

Correct A. P = ₦75, Q = 50

B. P = ₦80, Q = 40

C. P = ₦85, Q = 30

D. P = ₦90, Q = 20

Correct Answer: A

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Question 10

A firm's \cost function is given by C(Q) = 2Q^2 + 100, where C(Q) is the total \cost and Q is the quantity produced. If the firm produces 10 units, what is the total \cost?

A. ₦300

B. ₦400

Correct C. ₦500

D. ₦600

Correct Answer: C

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Question 11

Consider a closed economy with a \single good and service. If the government imposes a 20% tax on the production of this good, and the supply curve shifts to the left by 10 units, what will be the new equilibrium price and quantity?

A. ₦100, 50 units

Correct B. ₦120, 40 units

C. ₦80, 60 units

D. ₦90, 55 units

Correct Answer: B

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Question 12

A firm's production function is given by Q = 100L^0.5K^0.5. If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, and the firm wants to maximize its profit, what will be the optimal values of L and K?

A. L = 100, K = 100

B. L = 200, K = 50

C. L = 50, K = 200

Correct D. L = 150, K = 150

Correct Answer: D

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Question 13

Consider a country with a GDP of ₦10 trillion and a GNP of ₦12 trillion. If the country's population is 200 million, what is the per capita GDP?

A. ₦50,000

Correct B. ₦60,000

C. ₦70,000

D. ₦80,000

Correct Answer: B

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Question 14

A firm's demand function is given by Q = 100 - 2P. If the firm's revenue is ₦1,000,000, what is the price elasticity of demand?

Correct A. -2

B. -1

C. 1

D. 2

Correct Answer: A

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Question 15

Consider a country with a money supply of ₦5 trillion and a velocity of circulation of 2. If the country's GDP is ₦10 trillion, what is the price level?

A. ₦2

B. ₦3

Correct C. ₦4

D. ₦5

Correct Answer: C

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Question 16

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 -2, what is the percentage change in quantity demanded when the price increases by 10%?

A. 20%

Correct B. 30%

C. 40%

D. 50%

Correct Answer: B

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Question 17

A firm has a production function Q = 2L^2 + 3K, where Q is the output, L is the labor and K is the capital. If the firm has 10 units of labor and 5 units of capital, what is the marginal product of labor?

A. 20

B. 30

Correct C. 40

D. 50

Correct Answer: C

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Question 18

A country has a trade deficit of $100 million and a current account deficit of $50 million. What is the capital account surplus?

A. $50 million

B. $100 million

Correct C. $150 million

D. $200 million

Correct Answer: C

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Question 19

A firm has a \cost function C = 2L + 3K, where C is the \cost, L is the labor and K is the capital. If the firm has 10 units of labor and 5 units of capital, what is the marginal \cost of labor?

A. 1

Correct B. 2

C. 3

D. 4

Correct Answer: B

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Question 20

A country has a GDP of $100 billion and a population of 10 million. What is the GDP per capita?

A. $10,000

B. $20,000

Correct C. $30,000

D. $40,000

Correct Answer: C

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Question 21

A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor and H is capital. If the firm wants to increase its output by 20% while keeping labor cons\tant, what percentage increase in capital is required?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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Question 22

A country's GDP at market price is ₦100 billion, while its GDP at factor \cost is ₦90 billion. What is the indirect tax rate?

Correct A. 10%

B. 20%

C. 30%

D. 40%

Correct Answer: A

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Question 23

A firm's total revenue is given by TR = 100Q - 2Q^2, where Q is the quantity sold. If the firm sells 10 units, what is its total revenue?

Correct A. ₦800

B. ₦900

C. ₦1000

D. ₦1100

Correct Answer: A

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Question 24

A country's national income is given by N = C + I + G, where C is consumption, I is investment, and G is government sp\ending. If the country's consumption is ₦500 billion, investment is ₦200 billion, and government sp\ending is ₦300 billion, what is its national income?

Correct A. ₦1000

B. ₦1500

C. ₦2000

D. ₦2500

Correct Answer: A

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Question 25

A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor and H is capital. If the firm wants to increase its output by 20% while keeping labor cons\tant, what percentage increase in capital is required?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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