POST UTME AL-HIKMAH UNIVERSITY 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer has a budget of ₦10,000 and wants to buy a television that \costs ₦8,000 and a refrigerator that \costs ₦6,000. If the consumer also wants to save ₦2,000, can the consumer afford both items?
A. Yes
B. No
C. Maybe
D. It dep\ends
Question 2
A firm's demand function is given by Q = 100 - 2P. If the market price is P = 20, what is the firm's quantity demanded?
A. 40
B. 60
C. 80
D. 100
Question 3
A firm is producing a good with a production function of Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the price of labor is $10 per unit and the price of capital is $20 per unit, and if the firm is currently producing 100 units of the good, what is the marginal product of labor?
A. 0.5
B. 1
C. 2
D. 4
Question 4
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will happen to its quantity demanded?
A. Increase
B. Decrease
C. No change
D. Indeterminate
Question 5
A firm is considering investing in a new project with a net present value (NPV) of ₦100,000. If the firm's \cost of capital is 10%, what is the present value of the project?
A. ₦100,000
B. ₦90,909
C. ₦100,000 / \( 1 + 0.10 \)
D. ₦100,000 / \( 1 - 0.10 \)
Question 6
A country's balance of payments can be affected by changes in its exchange rate. Which of the following scenarios would lead to an improvement in the balance of payments?
A. A 10% increase in export prices and a 5% decrease in import prices
B. A 5% decrease in export prices and a 10% increase in import prices
C. A 10% increase in export prices and a 10% increase in import prices
D. A 5% decrease in export prices and a 5% decrease in import prices
Question 7
A firm is producing a good with a production function of Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the price of labor is $10 per unit and the price of capital is $20 per unit, and if the firm is currently producing 100 units of the good, what is the opportunity \cost of producing one more unit of the good?
A. $5
B. $10
C. $20
D. $50
Question 8
A consumer has a utility function of U = 2x + 3y, where x and y are the quantities of two goods consumed. The prices of the two goods are $5 and $10, respectively. If the consumer's income is $100, what is the consumer's optimal bundle of goods?
A. x = 10, y = 5
B. x = 15, y = 3
C. x = 20, y = 2
D. x = 25, y = 1
Question 9
A country's balance of payments account shows a trade deficit of ₦500 billion and a capital account surplus of ₦200 billion. What is the country's overall balance of payments position?
A. ₦300 billion deficit
B. ₦300 billion surplus
C. ₦500 billion deficit
D. ₦500 billion surplus
Question 10
A firm's supply function is given by Q = 2P + 10. If the market price is P = 5, what is the firm's quantity supplied?
A. 20
B. 30
C. 40
D. 50
Question 11
A firm is producing a good with a production function of Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the price of labor is $10 per unit and the price of capital is $20 per unit, and if the firm is currently producing 100 units of the good, what is the marginal product of capital?
A. 0.5
B. 1
C. 2
D. 4
Question 12
A country's balance of payments account shows a trade deficit of ₦500 billion and a capital account surplus of ₦200 billion. What is the country's overall balance of payments position?
A. ₦300 billion deficit
B. ₦300 billion surplus
C. ₦500 billion deficit
D. ₦500 billion surplus
Question 13
A consumer has a utility function of U = 2x + 3y, where x and y are the quantities of two goods consumed. The prices of the two goods are $5 and $10, respectively. If the consumer's income is $100, what is the consumer's optimal bundle of goods?
A. x = 10, y = 5
B. x = 15, y = 3
C. x = 20, y = 2
D. x = 25, y = 1
Question 14
A farmer in Nigeria has 100 hectares of land and wants to plant maize. If the yield per hectare is 4 tons, how many tons of maize will the farmer harvest in total?
A. 300 tons
B. 400 tons
C. 500 tons
D. 600 tons
Question 15
The Nigerian government has implemented a policy to increase the production of rice through the use of irrigation. This policy is expected to increase the supply of rice in the market. What will happen to the price of rice as a result of this policy?
A. Increase
B. Decrease
C. Remain the same
D. It dep\ends

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: