POST UTME AFE BABALOLA UNIVERSITY 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Agricultural mechanization in Nigeria has been hindered by the high \cost of machinery. However, the government has introduced a subsidy program to reduce the \cost. U\sing the concept of opportunity \cost, explain why the subsidy program may not be effective in increa\sing agricultural mechanization.
A. The subsidy program may lead to over-reliance on government support, reducing the incentive for farmers to invest in their own machinery.
B. The subsidy program may not address the underlying issue of high production \costs, which may lead to a decrease in agricultural productivity.
C. The subsidy program may create a market distortion, leading to an increase in the demand for machinery, but not necessarily an increase in agricultural mechanization.
D. The subsidy program may not be effective in increa\sing agricultural mechanization because it does not address the issue of limited access to credit for farmers.
Question 2
A firm's total revenue (TR) is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm sells 20 units, what is the total revenue?
A. ₦2000
B. ₦1800
C. ₦1600
D. ₦1400
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm has 100 units of labor and 200 units of capital, determine the firm's output.
A. 200 units
B. 300 units
C. 400 units
D. 500 units
Question 4
A firm is operating in a perfectly competitive market with a demand curve given by P = 100 - 2x. If the firm's marginal \cost is ₦20, what is the firm's optimal quantity?
A. x = 20
B. x = 30
C. x = 40
D. x = 50
Question 5
The demand for a product is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. The supply of the product is given by the equation Q = 2P - 100. What is the equilibrium price and quantity?
A. Price = ₦50, Quantity = 50 units
B. Price = ₦100, Quantity = 100 units
C. Price = ₦150, Quantity = 150 units
D. Price = ₦200, Quantity = 200 units
Question 6
A consumer's indifference curve is given by the equation U = 2X + 3Y. If the consumer's budget constraint is given by the equation 2X + 3Y = 12, determine the consumer's optimal bundle of goods.
A. X = 2, Y = 2
B. X = 3, Y = 1
C. X = 4, Y = 0
D. X = 0, Y = 4
Question 7
Suppose the demand function for a commodity is given by Qd = 100 - 2P and the supply function is given by Qs = 2P + 10. If the market equilibrium is attained at a price of ₦50, what is the total revenue earned by consumers and producers?
A. ₦2500
B. ₦3000
C. ₦3500
D. ₦4000
Question 8
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 has a budget of ₦100 and the prices of good X and good Y are ₦5 and ₦3 respectively, what is the optimal consumption bundle?
A. (10,10)
B. (20,5)
C. (15,15)
D. (5,20)
Question 9
A farmer in Nigeria has 100 hectares of land to cultivate maize. The marginal product of labor is 10 units of maize per hour of labor, and the wage rate is ₦100 per hour. U\sing the concept of scarcity and choice, explain why the farmer may choose to hire labor to cultivate the land.
A. The farmer may choose to hire labor because the marginal product of labor is greater than the wage rate.
B. The farmer may choose to hire labor because the wage rate is greater than the marginal product of labor.
C. The farmer may choose to hire labor because the land is too large to cultivate alone.
D. The farmer may choose to hire labor because the farmer is too old to cultivate the land alone.
Question 10
A consumer's indifference curve is given by 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 consumer's optimal bundle?
A. x = 10, y = 20
B. x = 20, y = 10
C. x = 15, y = 15
D. x = 5, y = 5
Question 11
A company has a revenue function given by R(x) = 3x^2 - 2x + 1, where R(x) is the revenue and x is the number of units sold. If the company sells 5 units, what is the total revenue?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 12
A firm is operating in a monopoly market with a demand curve given by P = 100 - 2x. If the firm's marginal \cost is ₦20, what is the firm's optimal quantity?
A. x = 20
B. x = 30
C. x = 40
D. x = 50
Question 13
A government wants to reduce the inflation rate from 10% to 5% within a period of 2 years. If the current money supply is ₦100 billion and the velocity of money is 2, what is the required reduction in the money supply?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 14
A monopolist in Nigeria produces a good with a cons\tant marginal \cost of ₦100 and a price of ₦200. U\sing the concept of profit maximization, calculate the quantity of the good that the monopolist will produce.
A. 100 units
B. 200 units
C. 500 units
D. 1000 units
Question 15
Determine the equilibrium price and quantity of a commodity when the demand function is given by Qd = 100 - 2P and the supply function is given by Qs = 2P - 10.
A. ₦50
B. ₦75
C. ₦100
D. ₦125

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: