POST UTME CHRISTOPHER UNIVERSITY 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer has the following utility function: U(x,y) = x^2 + 2y. If the prices of x and y are P_x = 5 and P_y = 3, respectively, and the consumer's income is I = 150, calculate the optimal quantities of x and y u\sing the budget constraint.
A. \( x^* = 15, y^* = 10 \)
B. \( x^* = 10, y^* = 15 \)
C. \( x^* = 20, y^* = 5 \)
D. \( x^* = 25, y^* = 2 \)
Question 2
A firm is producing a commodity at a level where the marginal revenue equals the marginal \cost. If the price of the commodity increases, what will be the effect on the quantity supplied?
A. Quantity supplied will increase
B. Quantity supplied will decrease
C. Quantity supplied will remain the same
D. Quantity supplied will increase at a decrea\sing rate
Question 3
A country's national income is measured by its gross domestic product (GDP). What is the primary difference between GDP and gross national product (GNP)?
A. GDP includes income earned by foreign residents, while GNP excludes income earned by domestic residents.
B. GDP excludes income earned by foreign residents, while GNP includes income earned by domestic residents.
C. GDP includes income earned by domestic residents, while GNP excludes income earned by foreign residents.
D. GDP excludes income earned by domestic residents, while GNP includes income earned by foreign residents.
Question 4
A consumer has the following utility function: U(x,y) = 2x + 3y. If the prices of x and y are P_x = 4 and P_y = 6, respectively, and the consumer's income is I = 100, calculate the optimal quantities of x and y u\sing the budget constraint.
A. \( x^* = 10, y^* = 5 \)
B. \( x^* = 5, y^* = 10 \)
C. \( x^* = 15, y^* = 3 \)
D. \( x^* = 20, y^* = 2 \)
Question 5
A country's balance of payments (BOP) is in equilibrium when the current account and capital account are balanced. What is the primary factor that determines the equilibrium exchange rate in the BOP?
A. The interest rate differential between countries.
B. The difference in inflation rates between countries.
C. The difference in income levels between countries.
D. The difference in trade balances between countries.
Question 6
Consider a firm with a production function Q = 2L^0.5K^0.5. If the price of the good is P = 20, and the wage rate is W = 15, calculate the optimal level of labor \( L* \) u\sing the first-order condition for profit maximization.
A. \( L^* = 16 \)
B. \( L^* = 64 \)
C. \( L^* = 256 \)
D. \( L^* = 1024 \)
Question 7
The demand for a commodity is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, find the price at which the quantity demanded is 60 units.
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 8
The agricultural sector in Nigeria contributes significantly to the country's GDP. However, the sector is plagued by low productivity, inadequate infrastructure, and lack of access to credit. Which of the following policies would be most effective in addres\sing these challenges?
A. Implementing a cash transfer program to support smallholder farmers
B. Providing subsidies to large-scale commercial farmers
C. Investing in irrigation infrastructure to increase crop yields
D. Establishing a national agricultural bank to provide credit to farmers
Question 9
The National Bureau of Statistics (NBS) has reported that the country's GDP grew by 3.5% in the last quarter. However, the growth was largely driven by the non-oil sector. What is the likely implication of this tr\end for the country's economic development?
A. The country's economic growth is sustainable
B. The country's economic growth is not sustainable
C. The country's economic growth is driven by a diversified economy
D. The country's economic growth is driven by a non-diversified economy
Question 10
A country's GNP is ₦1,500,000,000. If the country's population is 20 million, what is the per capita income?
A. ₦75
B. ₦150
C. ₦300
D. ₦750
Question 11
Consider a small open economy with a trade balance of -$100 million. If the exchange rate is 1 USD = 120 NGN, and the price of a barrel of crude oil is $50, what is the value of the trade balance in NGN?
A. -12,000,000 NGN
B. -10,000,000 NGN
C. -15,000,000 NGN
D. -8,000,000 NGN
Question 12
A firm's opportunity \cost is the value of the next best alternative that is given up when a choice is made. What is the primary implication of a firm's opportunity \cost on its production decisions?
A. The firm will produce at the point where the opportunity \cost is minimized.
B. The firm will produce at the point where the opportunity \cost is maximized.
C. The firm will produce at the point where the opportunity \cost is equal to the marginal revenue.
D. The firm will produce at the point where the opportunity \cost is equal to the marginal \cost.
Question 13
A monopolistically competitive firm faces a demand curve given by Q = 100 - 2P. If the firm's marginal revenue (MR) is given by MR = 200 - 2Q, what is the firm's optimal price?
A. $50
B. $55
C. $60
D. $65
Question 14
A country's GDP is given by the equation Y = C + I + G + \( X - M \). If the country's consumption is ₦100 billion, investment is ₦20 billion, government sp\ending is ₦30 billion, exports are ₦50 billion, and imports are ₦20 billion, find the country's GDP.
A. ₦150 billion
B. ₦200 billion
C. ₦250 billion
D. ₦300 billion
Question 15
A firm's production function is given by F(K, L) = 10K^0.5L^0.5. If the firm has 100 units of capital and 50 units of labor, find the returns to scale.
A. Increa\sing returns to scale
B. Decrea\sing returns to scale
C. Cons\tant returns to scale
D. No returns to scale

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