POST UTME ESUT 2023 Economics | Objective

Are you preparing for POST UTME ESUT exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2023 Economics (Objective) questions designed to simulate the real exam environment.

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Question 1
Suppose 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 - 20, where Qs is the quantity supplied, find the equilibrium price and quantity.
A. ₦50
B. ₦75
Correct C. ₦100
D. ₦125

Correct Answer: C

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Question 2
A monopolist faces a demand curve given by Qd = 100 - 2P and a \cost function given by C(Q) = 2Q^2 + 10Q. Find the profit-maximizing quantity and price.
A. Q = 20, P = ₦60
B. Q = 30, P = ₦80
Correct C. Q = 40, P = ₦100
D. Q = 50, P = ₦120

Correct Answer: C

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Question 3
A country's GDP is given by the equation Y = C + I + G + \( X - M \), where Y is the GDP, C is the consumption, I is the investment, G is the government sp\ending, X is the exports, and M is the imports. If the country's GDP is ₦1 trillion, consumption is ₦300 billion, investment is ₦200 billion, government sp\ending is ₦100 billion, exports are ₦500 billion, and imports are ₦200 billion, find the country's GDP.
Correct A. ₦1.1 trillion
B. ₦1.2 trillion
C. ₦1.3 trillion
D. ₦1.4 trillion

Correct Answer: A

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Question 4
A firm's demand curve is given by Qd = 100 - 2P and its supply curve is given by Qs = 2P - 20. If the firm is a monopolist, find the profit-maximizing quantity and price.
A. Q = 20, P = ₦60
B. Q = 30, P = ₦80
Correct C. Q = 40, P = ₦100
D. Q = 50, P = ₦120

Correct Answer: C

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Question 5
A country's balance of payments is given by the equation BOP = X - M, where BOP is the balance of payments, X is the exports, and M is the imports. If the country's exports are ₦500 billion and imports are ₦200 billion, find the country's balance of payments.
A. ₦300 billion
B. ₦400 billion
Correct C. ₦500 billion
D. ₦600 billion

Correct Answer: C

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Question 6
A perfectly competitive market has many firms producing a homogeneous product. Which of the following is a characteristic of a perfectly competitive market?
A. Firms have complete control over the market price.
B. Firms produce a homogeneous product.
Correct C. Firms have access to the same information.
D. Firms produce a differentiated product.

Correct Answer: C

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Question 7
A country's GDP is calculated as the sum of all final goods and services produced within its borders. Which of the following is NOT included in the calculation of GDP?
Correct A. Imports
B. Exports
C. Intermediate goods
D. Final goods and services

Correct Answer: A

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Question 8
A monopolist faces a downward-sloping demand curve. Which of the following is a characteristic of a monopolist?
A. Firms produce at the minimum point of the average \cost curve.
Correct B. Firms produce at the point where MR = MC.
C. Firms produce at the point where P = MC.
D. Firms produce at the point where MR = P.

Correct Answer: B

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Question 9
A country's balance of payments (BOP) accounts record all transactions between residents and non-residents. Which of the following is a component of the current account?
Correct A. Exports
B. Imports
C. Services
D. Capital account

Correct Answer: A

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Question 10
A firm's production function is given by Q = 2L^0.5K^0.5. What is the marginal product of labor (MPL) when L = 4 and K = 9?
A. 2
B. 4
Correct C. 6
D. 8

Correct Answer: C

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Question 11
Consider a country with a GDP of ₦10 trillion and a population of 200 million. If the average annual income is ₦50,000, what is the GDP per capita?
A. ₦25,000
Correct B. ₦50,000
C. ₦100,000
D. ₦200,000

Correct Answer: B

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Question 12
A firm is operating in a perfectly competitive market with a demand curve given by Q = 100 - 2P. If the firm's marginal \cost is MC = 10, what is the optimal 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

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Question 13
A country's balance of payments account shows a trade deficit of ₦500 billion and a current account deficit of ₦200 billion. What is the capital account surplus?
A. ₦300 billion
B. ₦400 billion
Correct C. ₦500 billion
D. ₦600 billion

Correct Answer: C

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Question 14
A firm is facing a downward-sloping demand curve given by Q = 100 - 2P. If the firm's marginal revenue is MR = 20, what is the optimal 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

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Question 15
A country's GDP is ₦10 trillion, and its GNP is ₦12 trillion. What is the net factor income from abroad?
A. ₦2 trillion
B. ₦4 trillion
Correct C. ₦6 trillion
D. ₦8 trillion

Correct Answer: C

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Question 16
A firm's demand curve is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The firm's supply curve is given by the equation Qs = 2P - 50, where Qs is the quantity supplied. Find the equilibrium price and quantity.
A. ₦50
B. ₦75
Correct C. ₦100
D. ₦125

Correct Answer: C

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Question 17
A consumer has a utility function given by U(x, y) = 2x + 3y. The prices of x and y are ₦5 and ₦10 respectively. Find the consumer's budget constraint.
A. ₦20
Correct B. ₦30
C. ₦40
D. ₦50

Correct Answer: B

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Question 18
A country's balance of payments account is given by the equation BOP = X - M, where BOP is the balance of payments, X is the value of exports, and M is the value of imports. If the value of exports is ₦100 and the value of imports is ₦80, find the balance of payments.
Correct A. ₦20
B. ₦30
C. ₦40
D. ₦50

Correct Answer: A

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Question 19
A firm's \cost function is given by the equation C(Q) = 2Q^2 + 10Q + 5, where C(Q) is the total \cost and Q is the quantity produced. Find the marginal \cost function.
Correct A. 4Q + 10
B. 2Q + 5
C. Q + 2
D. Q - 2

Correct Answer: A

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Question 20
A consumer has a budget of ₦100 and a utility function given by U(x, y) = 2x + 3y. The prices of x and y are ₦5 and ₦10 respectively. Find the consumer's optimal bundle.
A. x = 10, y = 5
Correct B. x = 15, y = 3
C. x = 20, y = 2
D. x = 25, y = 1

Correct Answer: B

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Question 21
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm wants to increase output by 20% while keeping labor cons\tant, by how much should it increase capital?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 22
A country's GDP is 100 billion naira, and its population is 20 million. If the average price level increases by 10%, what is the new GDP?
A. 110 billion naira
Correct B. 120 billion naira
C. 130 billion naira
D. 140 billion naira

Correct Answer: B

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Question 23
A firm's \cost function is given by C = 2L + 3H, where C is \cost, L is labor, and H is capital. If the firm wants to minimize \cost while producing 100 units of output, what is the optimal combination of labor and capital?
Correct A. L = 20, H = 30
B. L = 30, H = 20
C. L = 40, H = 10
D. L = 50, H = 5

Correct Answer: A

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Question 24
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 exports, M is imports, F is foreign investment, and I is domestic investment. If exports increase by 10%, imports decrease by 5%, foreign investment increases by 20%, and domestic investment decreases by 15%, what is the new balance of payments?
Correct A. 10% increase
B. 5% decrease
C. 15% increase
D. 20% decrease

Correct Answer: A

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Question 25
A firm's revenue function is given by R = 2Q - 3Q^2, where R is revenue and Q is output. If the firm produces 100 units of output, what is the revenue?
A. 1000
Correct B. 2000
C. 3000
D. 4000

Correct Answer: B

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