POST UTME DELSU 2025 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 2025 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
The elasticity of demand for a product is -2. If the price of the product increases by 10%, what is the percentage change in the quantity demanded?
Correct A. -20%
B. -10%
C. 0%
D. 20%

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A monopolist faces a demand curve given by Q = 100 - 2P. If the marginal \cost is cons\tant at 10, what is the profit-maximizing price and quantity?
A. P = 40, Q = 30
Correct B. P = 50, Q = 25
C. P = 60, Q = 20
D. P = 70, Q = 15

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A country's GDP is ₦100 billion, and its GNP is ₦120 billion. What is the net factor income from abroad?
A. ₦10 billion
B. ₦20 billion
Correct C. ₦30 billion
D. ₦40 billion

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, what is the \cost-minimizing combination of labor and capital?
A. L = 10, K = 20
Correct B. L = 20, K = 10
C. L = 30, K = 5
D. L = 5, K = 30

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A monopolist faces a demand curve given by Q = 100 - 2P. If the marginal \cost is cons\tant at 10, what is the profit-maximizing price and quantity?
A. P = 40, Q = 30
Correct B. P = 50, Q = 25
C. P = 60, Q = 20
D. P = 70, Q = 15

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
In a perfectly competitive market, the supply curve is upward-sloping because firms are willing to supply more of a good as its price increases. However, this is not the case in a monopoly market. Explain why the supply curve in a monopoly market is downward-sloping.
A. Because the monopoly firm is a price-taker and cannot influence the market price.
B. Because the monopoly firm has a downward-sloping demand curve for its product.
Correct C. Because the monopoly firm is a price-maker and can influence the market price.
D. Because the monopoly firm has a fixed \cost that increases as output increases.

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A farmer in Nigeria has 100 hectares of land to plant maize. The price of maize is ₦200 per ki\logram, and the \cost of planting and harvesting is ₦100,000. If the yield per hectare is 10,000 ki\lograms, what is the maximum amount the farmer can afford to pay for the land?
A. ₦1,000,000
Correct B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
The demand for a good is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the supply curve is given by the equation Qs = 2P - 50, where Qs is the quantity supplied, what is the equilibrium price and quantity?
A. P = 25, Q = 75
Correct B. P = 50, Q = 100
C. P = 75, Q = 125
D. P = 100, Q = 150

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A monopolist has a \cost function given by C = 100 + 2Q^2, where C is the total \cost and Q is the quantity produced. If the price is ₦100 per unit, what is the profit-maximizing quantity?
A. Q = 10
B. Q = 20
Correct C. Q = 30
D. Q = 40

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A firm is considering investing in a new project that has a net present value (NPV) of ₦1,000,000. If the \cost of capital is 10% per annum, what is the internal rate of return (IRR) of the project?
A. 10%
Correct B. 12%
C. 15%
D. 18%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
A perfectly competitive market is characterized by a large number of firms producing a homogeneous product, and each firm has complete knowledge of market conditions. Which of the following is a consequence of this market structure?
A. Each firm produces at the minimum point of its average total \cost curve.
Correct B. Each firm produces at the point where its marginal revenue equals its marginal \cost.
C. Each firm produces at the point where its average revenue equals its average \cost.
D. Each firm produces at the point where its marginal revenue equals its average \cost.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A consumer's indifference curve is a graphical representation of the various combinations of two goods that the consumer is indifferent between. What is the slope of the indifference curve at any point?
A. The slope of the indifference curve is positive.
Correct B. The slope of the indifference curve is negative.
C. The slope of the indifference curve is zero.
D. The slope of the indifference curve is undefined.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input levels are L = 4 and K = 9, what is the firm's current output level?
A. Q = 12
B. Q = 18
Correct C. Q = 24
D. Q = 36

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A country's GDP is given by the equation GDP = C + I + G + \( X - M \). If the country's current GDP is ₦100 billion, and the current levels of consumption, investment, government sp\ending, exports, and imports are ₦30 billion, ₦20 billion, ₦15 billion, ₦25 billion, and ₦20 billion respectively, what is the country's current trade balance?
Correct A. ₦5 billion
B. ₦10 billion
C. ₦15 billion
D. ₦20 billion

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A central bank uses open market operations to increase the money supply in the economy. What is the effect of this action on the interest rate?
A. The interest rate increases.
Correct B. The interest rate decreases.
C. The interest rate remains unchanged.
D. The interest rate becomes zero.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
The demand for a product 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, what is the percentage change in quantity demanded when the price increases by 10%?
Correct A. 5%
B. 10%
C. 15%
D. 20%

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A firm is producing a good with a cons\tant marginal \cost of ₦10 per unit. The market price is ₦20 per unit, and the firm is selling 100 units. What is the total revenue?
A. ₦1500
Correct B. ₦2000
C. ₦2500
D. ₦3000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
The following diagram shows the supply and demand curves for a product. If the price is ₦15, what is the quantity supplied?
A. 100
B. 200
Correct C. 300
D. 400

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A country's balance of payments is given by the equation BOP = X - M, where X is the value of exports and M is the value of imports. If the value of exports is ₦100 billion and the value of imports is ₦120 billion, what is the balance of payments?
A. ₦10 billion
Correct B. ₦20 billion
C. ₦30 billion
D. ₦40 billion

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A firm is producing a good with a cons\tant marginal \cost of ₦10 per unit. The market price is ₦20 per unit, and the firm is selling 100 units. What is the profit?
A. ₦500
Correct B. ₦1000
C. ₦1500
D. ₦2000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the supply of the product is given by the equation Qs = 2P - 50, where Qs is the quantity supplied, find the equilibrium price and quantity.
A. ₦50
Correct B. ₦75
C. ₦100
D. ₦125

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A government is considering a policy to reduce the budget deficit. The current budget deficit is ₦100 billion, and the government wants to reduce it by 20% in the next fiscal year. If the current tax revenue is ₦200 billion, what is the new tax rate needed to achieve the desired reduction in the budget deficit?
A. 20%
B. 25%
Correct C. 30%
D. 35%

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A monopolist faces a demand curve given by Qd = 100 - 2P and a \cost function given by C(Q) = 2Q^2 + 100. If the monopolist produces 50 units of the product, what is the profit-maximizing price?
A. ₦50
B. ₦75
Correct C. ₦100
D. ₦125

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A firm is considering an investment project that requires an initial outlay of ₦100 million. The project is expected to generate a cash flow of ₦20 million in the first year, ₦30 million in the second year, and ₦40 million in the third year. If the firm's \cost of capital is 10%, what is the net present value of the project?
A. ₦50 million
B. ₦75 million
Correct C. ₦100 million
D. ₦125 million

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A consumer has a budget of ₦1000 and faces a price of ₦200 for a product. If the consumer's indifference curves are given by U = 2x + 3y, where x and y are the quantities of the two products, find the consumer's optimal bundle.
Correct A. x = 2, y = 3
B. x = 3, y = 2
C. x = 4, y = 1
D. x = 1, y = 4

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support