POST UTME BSU 2024 Economics | Objective

Are you preparing for POST UTME BSU exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2024 Economics (Objective) questions designed to simulate the real exam environment.

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Question 1
A country's GDP is calculated as the sum of all final goods and services produced within its borders. However, this measure does not account for income earned by its citizens from abroad. Which of the following is a correct statement regarding the relationship between GDP and GNP?
A. GDP is always greater than GNP
B. GDP is always less than GNP
C. GDP and GNP are equal
Correct D. GDP is equal to GNP minus net factor income from abroad

Correct Answer: D

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Question 2
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm produces 5 units of output, what is its total \cost?
A. ₦75
B. ₦85
Correct C. ₦95
D. ₦105

Correct Answer: C

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Question 3
A consumer's budget constraint is given by the equation 2x + 3y = 12. If the consumer sp\ends ₦6 on x, how much does she sp\end on y?
A. ₦2
Correct B. ₦4
C. ₦6
D. ₦8

Correct Answer: B

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Question 4
A firm's revenue function is given by R(q) = 10q. If the firm produces 3 units of output, what is its total revenue?
Correct A. ₦30
B. ₦40
C. ₦50
D. ₦60

Correct Answer: A

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Question 5
A consumer's indifference curve is given by the equation u(x, y) = 2x + y. If the consumer's income is ₦12, and the price of x is ₦2, what is the consumer's optimal bundle?
A. x = 2, y = 6
Correct B. x = 3, y = 6
C. x = 4, y = 6
D. x = 5, y = 6

Correct Answer: B

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Question 6
Consider a pure public good with a demand function Q = 100 - 2P. If the government decides to provide this good at a price of ₦50, what will be the consumer surplus?
Correct A. ₦2500
B. ₦2000
C. ₦1500
D. ₦1000

Correct Answer: A

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Question 7
A monopolist faces a demand curve given by Q = 100 - 2P. The marginal \cost curve is MC = 10. What is the profit-maximizing price?
A. ₦40
Correct B. ₦50
C. ₦60
D. ₦70

Correct Answer: B

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Question 8
Consider a market with a demand function Q = 100 - 2P and a supply function Q = 20 + 3P. What is the equilibrium price?
A. ₦20
B. ₦30
Correct C. ₦40
D. ₦50

Correct Answer: C

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Question 9
A country's GDP is ₦100 billion. The government decides to increase the price of a good by 10%. What is the new GDP?
A. ₦110 billion
Correct B. ₦120 billion
C. ₦130 billion
D. ₦140 billion

Correct Answer: B

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Question 10
Consider a country with a GDP of ₦100 billion and a GNP of ₦120 billion. What is the net factor income from abroad?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
Correct D. ₦50 billion

Correct Answer: D

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Question 11
A firm's production function is given by Q = 100L^0.5K^0.5. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦200 per unit, calculate the total \cost of producing 100 units of output.
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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Question 12
The following table shows the production schedule of a firm producing two goods, X and Y. U\sing the data in the table, calculate the opportunity \cost of producing one more unit of good X.
A. 2 units of Y
Correct B. 3 units of Y
C. 4 units of Y
D. 5 units of Y

Correct Answer: B

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Question 13
A country's GDP at market price is ₦1,000,000. If the value added tax (VAT) rate is 10%, calculate the GDP at factor \cost.
Correct A. ₦900,000
B. ₦950,000
C. ₦1,000,000
D. ₦1,050,000

Correct Answer: A

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Question 14
A firm's \cost function is given by C = 100 + 2L + 3K. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦200 per unit, calculate the total \cost of producing 50 units of output.
A. ₦15,000
Correct B. ₦20,000
C. ₦25,000
D. ₦30,000

Correct Answer: B

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Question 15
A country's GNP at market price is ₦1,500,000. If the value added tax (VAT) rate is 10%, calculate the GNP at factor \cost.
Correct A. ₦1,350,000
B. ₦1,400,000
C. ₦1,450,000
D. ₦1,500,000

Correct Answer: A

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Question 16
A firm's revenue function is given by R = 100L + 200K. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦200 per unit, calculate the total revenue of producing 50 units of output.
A. ₦15,000
Correct B. ₦20,000
C. ₦25,000
D. ₦30,000

Correct Answer: B

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Question 17
A country's GDP at factor \cost is ₦1,000,000. If the value added tax (VAT) rate is 10%, calculate the GDP at market price.
A. ₦1,100,000
Correct B. ₦1,150,000
C. ₦1,200,000
D. ₦1,250,000

Correct Answer: B

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Question 18
A firm's production function is given by Q = 100L^0.5K^0.5. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦200 per unit, calculate the marginal product of labor.
A. 5 units of output
Correct B. 10 units of output
C. 15 units of output
D. 20 units of output

Correct Answer: B

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Question 19
A country's GNP at factor \cost is ₦1,500,000. If the value added tax (VAT) rate is 10%, calculate the GNP at market price.
Correct A. ₦1,650,000
B. ₦1,700,000
C. ₦1,750,000
D. ₦1,800,000

Correct Answer: A

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Question 20
A consumer's indifference curve is represented by the equation u(x,y) = 2x + 3y. If the consumer's initial \endowment is (x0, y0) = (10, 20), and the price of good x is ₦5, while the price of good y is ₦3, what is the consumer's optimal bundle?
Correct A. x = 5, y = 10
B. x = 10, y = 5
C. x = 15, y = 0
D. x = 0, y = 15

Correct Answer: A

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Question 21
A firm's production function is given by Q = 2L^0.5 K^0.5. If the firm's current inputs are L = 16 and K = 9, what is the firm's current output?
Correct A. 32
B. 64
C. 128
D. 256

Correct Answer: A

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Question 22
A country's balance of payments account is given by the following equation: BOP = \( X - M \) + \( F - I \) + \( S - T \). If the country's current account balance is ₦100, the capital account balance is ₦200, and the government's budget deficit is ₦300, what is the country's overall balance of payments?
A. ₦500
Correct B. ₦600
C. ₦700
D. ₦800

Correct Answer: B

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Question 23
A firm's \cost function is given by C = 2L + 3K. If the firm's current inputs are L = 10 and K = 5, what is the firm's current \cost?
A. ₦50
Correct B. ₦60
C. ₦70
D. ₦80

Correct Answer: B

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Question 24
A consumer's indifference curve is represented by the equation u(x,y) = x^2 + 2y^2. If the consumer's initial \endowment is (x0, y0) = (10, 20), and the price of good x is ₦5, while the price of good y is ₦3, what is the consumer's optimal bundle?
Correct A. x = 5, y = 10
B. x = 10, y = 5
C. x = 15, y = 0
D. x = 0, y = 15

Correct Answer: A

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Question 25
A firm's revenue function is given by R = 2x^2 + 3x. If the firm's current output is x = 5, what is the firm's current revenue?
A. ₦65
Correct B. ₦70
C. ₦75
D. ₦80

Correct Answer: B

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