POST UTME DELSU 2021 Economics | Objective

Are you preparing for POST UTME DELSU exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2021 Economics (Objective) questions designed to simulate the real exam environment.

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Question 1
Determine the Marshall-Lerner condition for a country experiencing a trade deficit. Assume the country's export price elasticity is 0.5 and import price elasticity is 0.2.
Correct A. The Marshall-Lerner condition is met if the sum of the export and import price elasticities is greater than 1.
B. The Marshall-Lerner condition is met if the sum of the export and import price elasticities is less than 1.
C. The Marshall-Lerner condition is met if the export price elasticity is greater than the import price elasticity.
D. The Marshall-Lerner condition is met if the export price elasticity is less than the import price elasticity.

Correct Answer: A

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Question 2
A firm's demand function is given by Q = 100 - 2P + 3I, where Q is the quantity demanded, P is the price, and I is the income. If the price is $10 and the income is $500, calculate the quantity demanded.
A. 50
B. 75
Correct C. 100
D. 125

Correct Answer: C

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Question 3
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is $100 and the prices of the two goods are $5 and $10 respectively, calculate the consumer's optimal bundle.
A. (10, 20)
B. (20, 10)
Correct C. (15, 15)
D. (25, 5)

Correct Answer: C

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Question 4
A firm's supply function is given by Q = 2P + 50, where Q is the quantity supplied and P is the price. If the price is $20, calculate the quantity supplied.
A. 50
Correct B. 75
C. 100
D. 125

Correct Answer: B

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Question 5
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \), where BOP is the balance of payments, X is the value of exports, M is the value of imports, F is the value of foreign investment, and I is the value of domestic investment. If the value of exports is $100, the value of imports is $80, the value of foreign investment is $20, and the value of domestic investment is $10, calculate the balance of payments.
A. $30
Correct B. $40
C. $50
D. $60

Correct Answer: B

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Question 6
A consumer's indifference curve is represented by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the optimal bundle of x and y?
Correct A. x = 40, y = 30
B. x = 30, y = 40
C. x = 50, y 20
D. x = 20, y = 50

Correct Answer: A

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Question 7
A country's GDP is ₦100 billion, its imports are ₦20 billion, and its exports are ₦30 billion. What is its GDP at market price?
A. ₦120 billion
B. ₦130 billion
Correct C. ₦140 billion
D. ₦150 billion

Correct Answer: C

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Question 8
A monopolist faces a demand curve given by \( Q = 100 - 2P \) and a \cost function given by \( C = 20 + 5Q \). What is the profit-maximizing price and quantity?
A. P = ₦40, Q = 30
Correct B. P = ₦30, Q = 40
C. P = ₦20, Q = 50
D. P = ₦10, Q = 60

Correct Answer: B

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Question 9
A firm's production function is given by \( Q = 2L^2 + 3K \). If the price of labor is ₦10 and the price of capital is ₦20, what is the optimal combination of labor and capital?
Correct A. L = 10, K = 5
B. L = 5, K = 10
C. L = 15, K = 3
D. L = 3, K = 15

Correct Answer: A

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Question 10
A consumer's budget constraint is given by \( 2x + 3y = 100 \). If the consumer's indifference curve is represented by the equation ( u(x,y) = 2x + 3y ), what is the optimal bundle of x and y?
Correct A. x = 20, y = 30
B. x = 30, y = 20
C. x = 40, y = 10
D. x = 10, y = 40

Correct Answer: A

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Question 11
A firm is operating in a perfectly competitive market with a cons\tant marginal \cost (MC) of ₦10 and a downward-sloping demand curve. If the firm's marginal revenue (MR) is ₦20, what is the optimal quantity of output to produce?
A. 10 units
Correct B. 20 units
C. 30 units
D. 40 units

Correct Answer: B

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Question 12
A monopolist faces a market demand curve given by Q = 100 - 2P. If the monopolist's marginal \cost (MC) is ₦20, what is the optimal price to charge?
A. ₦50
B. ₦60
Correct C. ₦70
D. ₦80

Correct Answer: C

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Question 13
A farmer in Nigeria is considering whether to adopt a new techno\logy that will increase crop yields by 20%. If the current price of the crop is ₦100 per unit and the marginal \cost of production is ₦80 per unit, what is the expected profit from adopting the new techno\logy?
A. ₦20,000
B. ₦30,000
Correct C. ₦40,000
D. ₦50,000

Correct Answer: C

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Question 14
A firm is operating in a perfectly competitive market with a cons\tant marginal \cost (MC) of ₦10 and a downward-sloping demand curve. If the firm's marginal revenue (MR) is ₦20, what is the optimal quantity of output to produce?
A. 10 units
Correct B. 20 units
C. 30 units
D. 40 units

Correct Answer: B

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Question 15
A monopolist faces a market demand curve given by Q = 100 - 2P. If the monopolist's marginal \cost (MC) is ₦20, what is the optimal price to charge?
A. ₦50
B. ₦60
Correct C. ₦70
D. ₦80

Correct Answer: C

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Question 16
A firm's total revenue (TR) is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm sells 20 units, what is the total revenue?
Correct A. ₦2000
B. ₦1800
C. ₦1600
D. ₦1400

Correct Answer: A

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Question 17
A country's GDP is ₦100 billion, its imports are ₦20 billion, and its exports are ₦15 billion. What is its GDP at market price?
A. ₦105 billion
Correct B. ₦110 billion
C. ₦115 billion
D. ₦120 billion

Correct Answer: B

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Question 18
A consumer's utility function is given by U(x, y) = 2x + 3y, where x is the number of apples and y is the number of bananas. If the consumer buys 2 apples and 3 bananas, what is the total utility?
A. 10
B. 12
Correct C. 15
D. 18

Correct Answer: C

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Question 19
A firm's production function is given by Q = 2L + 3K, where L is labor and K is capital. If the firm uses 10 units of labor and 5 units of capital, what is the total output?
A. 25
B. 30
Correct C. 35
D. 40

Correct Answer: C

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Question 20
A country's GNP is ₦120 billion, its imports are ₦25 billion, and its exports are ₦20 billion. What is its GNP at market price?
A. ₦125 billion
B. ₦130 billion
Correct C. ₦135 billion
D. ₦140 billion

Correct Answer: C

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Question 21
A firm faces a downward-sloping demand curve for its product. If the firm increases its price, what will happen to its total revenue?
A. Total revenue will increase
Correct B. Total revenue will decrease
C. Total revenue will remain the same
D. Total revenue will increase at first, then decrease

Correct Answer: B

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Question 22
A consumer has a budget of ₦1000 and faces the following prices for two goods: good X \costs ₦200 and good Y \costs ₦300. If the consumer buys 2 units of good X, how many units of good Y can the consumer buy?
A. 2 units
Correct B. 3 units
C. 4 units
D. 5 units

Correct Answer: B

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Question 23
A firm produces two goods, X and Y, u\sing two inputs, labor and capital. The production function for good X is given by Q_X = 2L^0.5K^0.5, where Q_X is the quantity of good X produced, L is the amount of labor used, and K is the amount of capital used. If the firm uses 4 units of labor and 9 units of capital, how many units of good X will the firm produce?
A. 8 units
B. 10 units
Correct C. 12 units
D. 16 units

Correct Answer: C

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Question 24
A country's GDP is ₦100 billion, and its GNP is ₦120 billion. What is the country's net factor income from abroad?
Correct A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion

Correct Answer: A

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Question 25
A firm is a pure monopolist in its market. If the firm's demand curve is given by Q = 100 - P, and the firm's marginal revenue curve is given by MR = 2P, what is the firm's optimal price?
A. ₦50
B. ₦60
Correct C. ₦70
D. ₦80

Correct Answer: C

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