POST UTME COAL CITY UNIVERSITY 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer in Nigeria has a budget constraint of ₦1000. The price of a commodity is ₦500. What is the opportunity \cost of consuming this commodity?
A. ₦500
B. ₦1000
C. ₦2000
D. ₦5000
Question 2
A firm operating in a perfectly competitive market is characterized by which of the following?
A. Monopolistic competition
B. Perfect competition
C. Monopoly
D. Oligopoly
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5. What is the returns to scale of this production function?
A. Increa\sing returns to scale
B. Decrea\sing returns to scale
C. Cons\tant returns to scale
D. No returns to scale
Question 4
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm increases labor from 16 to 25 workers and capital from 9 to 16 units, what is the percentage change in output?
A. 25%
B. 50%
C. 75%
D. 100%
Question 5
A firm's \cost function is given by C = 100 + 2Q + 3Q^2, where C is the total \cost and Q is the quantity produced. If the firm produces 10 units, what is the total \cost?
A. ₦1300
B. ₦1500
C. ₦1700
D. ₦1900
Question 6
A firm's \cost function is given by CA = 2x + 3y. If the firm produces 10 units of good A and 15 units of good B, what is the total \cost of production?
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 7
A government's budget is balanced when its total revenue equals its total exp\enditure. If the government's total revenue is ₦1,000,000 and its total exp\enditure is ₦1,200,000, what is the government's budget deficit?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 8
The Marshall-Lerner condition states that if the sum of the elasticities of demand for imports and exports is greater than 1, then a devaluation of the currency will lead to an improvement in the balance of payments. What is the implication of this condition on the optimal level of devaluation?
A. Devaluation will lead to a significant improvement in the balance of payments.
B. Devaluation will lead to a small improvement in the balance of payments.
C. Devaluation will lead to a worsening of the balance of payments.
D. The Marshall-Lerner condition is irrelevant to the optimal level of devaluation.
Question 9
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current output is 16 units, and the price per unit is ₦100, what is the firm's total revenue?
A. ₦1600
B. ₦3200
C. ₦6400
D. ₦12800
Question 10
A firm produces two goods, A and B, with the following \cost functions: CA = 2x + 3y and CB = 4x + 5y. If the firm produces 10 units of good A and 15 units of good B, what is the total \cost of production?
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 11
Consider a country with a trade deficit of ₦500 billion and a current account deficit of ₦300 billion. If the country's exchange rate is ₦200 per dollar, what is the value of the trade deficit in dollars?
A. $2.5 billion
B. $3.75 billion
C. $5 billion
D. $7.5 billion
Question 12
A firm in Nigeria is facing a scarcity of raw materials. Which of the following is a likely consequence of this scarcity?
A. Increased production \costs
B. Decreased production \costs
C. Increased demand for raw materials
D. Decreased demand for raw materials
Question 13
A country's economic development is measured by its HDI. Which of the following statements is true about HDI?
A. HDI is a measure of a country's economic growth
B. HDI is a measure of a country's economic development
C. HDI is a measure of a country's economic stability
D. HDI is a measure of a country's economic inequality
Question 14
A country's inflation rate is given by the following equation: inflation rate = \( P2 - P1 \) / P1, where P1 is the previous year's price level and P2 is the current year's price level. If the price level increases from ₦100 to ₦120, what is the inflation rate?
A. 10%
B. 20%
C. 30%
D. 40%
Question 15
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% per annum, what is the present value of the project?
A. ₦90,909
B. ₦100,000
C. ₦110,110
D. ₦120,000

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