POST UTME ESUT 2025 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
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, what percentage increase in capital is required?
Question 2
A country's inflation rate is 10% per annum. If the country's price level is ₦100 in the base year, calculate the country's price level in the current year.
Question 3
A firm is considering investing in a new project that requires an initial investment of ₦1,500,000. The project is expected to generate a cash inflow of ₦300,000 in the first year, ₦350,000 in the second year, and ₦400,000 in the third year. If the firm's \cost of capital is 12%, find the net present value of the project.
Question 4
A firm's \cost function is given by C = 2L + 3K, where C is total \cost, L is labor and K is capital. If the firm's current labor and capital inputs are 4 and 9 units respectively, what is the firm's total \cost?
Question 5
A firm's production function is given by \( Q = 2L^2 + 5K \), where Q is output, L is labor, and K is capital. If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, what is the optimal combination of labor and capital to maximize profits?
Question 6
A firm is considering investing in a new project that requires an initial investment of ₦1,000,000. The project is expected to generate a cash inflow of ₦200,000 in the first year, ₦250,000 in the second year, and ₦300,000 in the third year. If the firm's \cost of capital is 10%, find the net present value of the project.
Question 7
Consider a country with a GDP of ₦15 trillion and a GNP of ₦18 trillion. What is the net factor income from abroad?
Question 8
A firm's total revenue is given by the equation \( TR = 100x - 2x^2 \), where ( x ) is the number of units sold. If the firm's marginal revenue is \( MR = 100 - 4x \), find the value of ( x ) at which the firm's revenue is maximized.
Question 9
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, what is the consumer's optimal bundle of goods?
Question 10
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the firm uses 100 units of labor and 100 units of capital, calculate the firm's output.
Question 11
A government is considering a tax on a particular good. The supply curve for the good is given by the equation Q = 2P + 10, where Q is the quantity supplied and P is the price. If the government wants to raise revenue of ₦1000, what tax rate should it impose?
Question 12
A country's GDP is ₦1,500 billion, and its GNP is ₦1,600 billion. Calculate the country's net factor income from abroad.
Question 13
The government of Nigeria has implemented a policy to increase the production of cement in the country. The policy involves providing subsidies to cement manufacturers and increa\sing the import duty on cement. If the demand for cement is given by the equation \( Q_d = 100 - 2P \) and the supply of cement is given by the equation \( Q_s = 2P - 20 \), find the equilibrium price and quantity of cement in the market.
Question 14
A firm's production function is given by \( Q = 3L^{\frac{2}{3}}K^{\frac{1}{3}} \), where Q is output, L is labor, and K is capital. If the marginal product of labor is 10, and the price of labor is ₦75 per unit, what is the optimal level of labor to maximize profits?
Question 15
A firm is considering the introduction of a new product. The demand for the product is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm wants to maximize its revenue, what quantity should it produce?
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