Practice Post UTME AL-HIKMAH UNIVERSITY economics 2025 Past Questions

Question 1

The government of Nigeria has implemented a policy to increase the production of rice through the use of irrigation. This policy is an example of which type of economic planning?

A. Microeconomic planning

Correct B. Macroeconomic planning

C. Fiscal policy

D. Monetary policy

Correct Answer: B

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Question 2

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

Correct B. 400 tons

C. 500 tons

D. 600 tons

Correct Answer: B

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Question 3

The Central Bank of Nigeria has increased the reserve requirement for commercial banks from 10% to 15%. This is an example of which type of monetary policy?

A. Expansionary monetary policy

B. Contractionary monetary policy

Correct C. Monetary tightening

D. Monetary ea\sing

Correct Answer: C

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Question 4

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

Correct B. No

C. Maybe

D. It dep\ends

Correct Answer: B

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Question 5

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

Correct B. Decrease

C. Remain the same

D. It dep\ends

Correct Answer: B

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Question 6

The government of a country has decided to implement a new tax policy aimed at reducing income inequality. The policy involves a progressive tax system where the tax rate increases as the income level increases. However, the policy also includes a tax exemption for low-income earners. Which of the following is a potential consequence of this policy?

A. Increased tax revenue for the government

B. Reduced income inequality among citizens

Correct C. Increased tax burden on low-income earners

D. Decreased economic growth due to higher tax rates

Correct Answer: C

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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

Correct B. $10

C. $20

D. $50

Correct Answer: B

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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

Correct B. x = 15, y = 3

C. x = 20, y = 2

D. x = 25, y = 1

Correct Answer: B

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Question 9

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

Correct B. 1

C. 2

D. 4

Correct Answer: B

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Question 10

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

Correct B. x = 15, y = 3

C. x = 20, y = 2

D. x = 25, y = 1

Correct Answer: B

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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

Correct B. 1

C. 2

D. 4

Correct Answer: B

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Question 12

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

Correct B. x = 15, y = 3

C. x = 20, y = 2

D. x = 25, y = 1

Correct Answer: B

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Question 13

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 total product of labor?

A. 100

Correct B. 200

C. 400

D. 800

Correct Answer: B

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Question 14

A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. U\sing calculus, find the profit-maximizing quantity and price.

A. (20, 40)

Correct B. (30, 50)

C. (40, 60)

D. (50, 70)

Correct Answer: B

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Question 15

A firm has a production function F(L, K) = 10L^0.4K^0.6. U\sing the Cobb-Douglas production function, find the marginal product of labor and the marginal product of capital.

Correct A. MP_L = 4L^0.2K^0.6, MP_K = 6L^0.4K^0.2

B. MP_L = 2L^0.2K^0.6, MP_K = 3L^0.4K^0.2

C. MP_L = 8L^0.2K^0.6, MP_K = 9L^0.4K^0.2

D. MP_L = 6L^0.2K^0.6, MP_K = 4L^0.4K^0.2

Correct Answer: A

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Question 16

A consumer has a utility function U(x, y) = 2x^0.5y^0.5. U\sing the indifference curve approach, find the consumer's budget constraint and the optimal bundle of x and y.

Correct A. Budget constraint: 2x + 3y = 12, Optimal bundle: (4, 4)

B. Budget constraint: 2x + 3y = 12, Optimal bundle: (6, 2)

C. Budget constraint: 2x + 3y = 12, Optimal bundle: (8, 1)

D. Budget constraint: 2x + 3y = 12, Optimal bundle: (10, 0)

Correct Answer: A

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Question 17

A country has a trade balance of -100 and a current account balance of -50. U\sing the balance of payments identity, find the capital account balance.

Correct A. Capital account balance: 50

B. Capital account balance: 100

C. Capital account balance: 150

D. Capital account balance: 200

Correct Answer: A

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Question 18

A central bank has a money supply of 1000 and a reserve requirement of 20%. U\sing the money multiplier formula, find the total deposits in the banking system.

Correct A. Total deposits: 5000

B. Total deposits: 6000

C. Total deposits: 7000

D. Total deposits: 8000

Correct Answer: A

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Question 19

A firm operating in a perfectly competitive market has a \cost function given by C(q) = 2q^2 + 10q. If the market price is P = 20, and the firm's revenue function is R(q) = Pq, calculate the firm's profit-maximizing output level.

A. 10

B. 20

Correct C. 30

D. 40

Correct Answer: C

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Question 20

A country's GDP is ₦1,500 billion, and its GNP is ₦1,600 billion. Calculate the country's net factor income from abroad.

A. ₦100 billion

Correct B. ₦200 billion

C. ₦300 billion

D. ₦400 billion

Correct Answer: B

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Question 21

A firm is considering two different production processes. Process A has a fixed \cost of ₦500,000 and a variable \cost of ₦200 per unit. Process B has a fixed \cost of ₦300,000 and a variable \cost of ₦150 per unit. If the market price is ₦250 per unit, which process should the firm choose?

Correct A. Process A

B. Process B

C. Both processes are equally profitable

D. Neither process is profitable

Correct Answer: A

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Question 22

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?

Correct A. ₦300 billion deficit

B. ₦300 billion surplus

C. ₦500 billion deficit

D. ₦500 billion surplus

Correct Answer: A

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Question 23

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

Correct B. 60

C. 80

D. 100

Correct Answer: B

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Question 24

A country's GDP is ₦1,500 billion, and its GNP is ₦1,600 billion. Calculate the country's net factor income from abroad.

A. ₦100 billion

Correct B. ₦200 billion

C. ₦300 billion

D. ₦400 billion

Correct Answer: B

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Question 25

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?

Correct A. 20

B. 30

C. 40

D. 50

Correct Answer: A

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