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UI Post-UTME Economics 2022 (Model questions) past questions and answers

2 questions. Try each one, then open the answer to check yourself and read the explanation.

Question 1

Theory of Consumer Behaviour

Given the price of commodity y is N2 and that of x is N1while the individual has income of N12. Determine the combination of the two commodities the individual should consume to maximize his utility

  1. A.3y and 3x
  2. B.6y and 4x
  3. C.3y and 6x
  4. D.5y and 5x
Show the answer and explanation

Answer: C (3y and 6x)

Explanation

Only 3y and 6x spends exactly the N12 income: 3 × 2 + 6 × 1 = 12. Options A leave money unspent; B and D cost more than N12.

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Question 9

Theory of Supply

When an increase in the price of steel causes an increase in the production of cars, then supply is

  1. A.complementary
  2. B.composite
  3. C.competitive
  4. D.derived
Show the answer and explanation

Answer: A (complementary)

Explanation

When producing more of one good goes together with producing more of another, supply is joint or complementary.

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