POST UTME AAUA 2025 Economics | Objective
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Question 1
The concept of scarcity in economics implies that the production of one good is limited by the availability of resources that could be used to produce other goods. This is an example of a fundamental principle of economics, which is often referred to as the law of _______
Question 2
A firm is operating under a perfectly competitive market structure. If the firm's marginal revenue (MR) is 100 and the marginal \cost (MC) is 80, what is the firm's profit-maximizing quantity of output?
Question 3
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 budget constraint is given by 2x + 3y = ₦100, what is the consumer's optimal bundle of goods?
Question 4
Suppose the demand function for a product is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the supply function is given by Q = 2P - 10, what is the equilibrium price?
Question 5
A firm is producing a good u\sing a production function of the form Q = 2L^0.5K^0.5, where L is labor and K is capital. If the firm's MPL is 0.5 units of output per additional worker, and the wage rate is ₦100 per hour, what is the firm's optimal level of labor?
Question 6
A government is considering a policy to reduce income inequality. One option is to increase the tax rate on high-income earners. What is the effect of this policy on the Laffer Curve?
Question 7
The national income accounting system is used to measure the total output of a country's economy. The Gross Domestic Product (GDP) is a key indicator of a country's economic performance. Which of the following is NOT a component of GDP?
Question 8
Suppose a firm's \cost function is given by C(x) = 2x^2 + 5x + 10, where x is the number of units produced. If the firm sells each unit for ₦50, what is the revenue function?
Question 9
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's revenue function is given by R(P) = 50P, what is the elasticity of demand?
Question 10
A government is considering implementing a new policy to reduce poverty. The policy involves providing a subsidy of ₦500 to each poor household. If the government expects 100,000 households to benefit from the policy, calculate the total \cost of the policy.
Question 11
A country's GDP is ₦100 billion. If the country's inflation rate is 10% and the price level is 1.1, what is the country's real GDP?
Question 12
A firm's production function is given by Q = 2K^\( 1/2 \) L^\( 1/2 \). If the firm's capital is ₦100,000 and labor is 10 workers, what is the output?
Question 13
A consumer's utility function is given by U = 2x + 3y. If the budget constraint is 2x + 3y = ₦100, what is the optimal bundle?
Question 14
A government is considering a tax on a particular good. The supply curve for the good is given by Q = 50 + 2P, where Q is the quantity supplied and P is the price. If the government imposes a tax of ₦10 per unit, what is the new supply curve?
Question 15
A firm is producing a good u\sing a Cobb-Douglas production function Q = 2L^0.4K^0.6. If the firm's current input prices are w = ₦150 and r = ₦250, and the current output price is p = ₦600, calculate the firm's optimal input bundle (L, K) u\sing the Shephard's Lemma. Assume that the firm's objective is to maximize its profit.
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