POST UTME GREENFIELD UNIVERSITY 2024 Economics | Objective

Are you preparing for POST UTME GREENFIELD UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2024 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is downward-sloping and the firms are price-takers, what is the equilibrium price and quantity?
Correct A. \( P = 10, Q = 100 \)
B. \( P = 20, Q = 50 \)
C. \( P = 30, Q = 200 \)
D. \( P = 40, Q = 150 \)

Correct Answer: A

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Question 2
A firm's \cost function is given by (C(q) = 10q + 20). If the firm's revenue function is (R(q) = 20q), what is the firm's profit-maximizing quantity?
A. \( q = 2 \)
Correct B. \( q = 5 \)
C. \( q = 10 \)
D. \( q = 15 \)

Correct Answer: B

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Question 3
A consumer's utility function is given by (U(x, y) = 2x + 3y). If the consumer's budget constraint is \( 2x + 3y = 30 \), what is the consumer's optimal bundle of x and y?
A. \( x = 5, y = 5 \)
Correct B. \( x = 10, y = 10 \)
C. \( x = 15, y = 15 \)
D. \( x = 20, y = 20 \)

Correct Answer: B

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Question 4
A government imposes a tax of ₦10 on a firm's output. If the firm's supply curve is given by \( Q = 2P - 10 \), what is the firm's new supply curve?
A. \( Q = 2P - 20 \)
Correct B. \( Q = 2P - 15 \)
C. \( Q = 2P - 10 \)
D. \( Q = 2P + 5 \)

Correct Answer: B

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Question 5
A monopolist faces a demand curve given by \( P = 100 - Q \). If the monopolist's marginal \cost curve is given by \( MC = 20 \), what is the monopolist's profit-maximizing quantity?
A. \( Q = 10 \)
B. \( Q = 20 \)
Correct C. \( Q = 30 \)
D. \( Q = 40 \)

Correct Answer: C

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Question 6
A perfectly competitive market has multiple firms producing a homogeneous product. If the market price is $10 and the marginal \cost of production is $8, what is the profit-maximizing quantity of output for each firm?
Correct A. \( Q = \frac{P - MC}{MR} \)
B. \( Q = \frac{MC}{P} \)
C. \( Q = \frac{P}{MC} \)
D. \( Q = \frac{MR}{P} \)

Correct Answer: A

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Question 7
A government budget is a statement of the government's planned revenues and exp\enditures over a specific period. If the government's planned revenue is ₦1,500,000 and its planned exp\enditure is ₦1,800,000, what is the budget deficit?
Correct A. ₦300,000
B. ₦200,000
C. ₦500,000
D. ₦1,000,000

Correct Answer: A

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Question 8
A monopolist faces a demand curve given by the equation \( Q = 100 - 2P \). If the marginal \cost of production is $8, what is the profit-maximizing price and quantity of output?
Correct A. \( P = 40, Q = 60 \)
B. \( P = 30, Q = 70 \)
C. \( P = 50, Q = 50 \)
D. \( P = 60, Q = 40 \)

Correct Answer: A

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Question 9
A firm's total revenue is given by the equation \( TR = 100P - P^2 \). If the price is $20, what is the total revenue?
A. ₦400
Correct B. ₦600
C. ₦800
D. ₦1,000

Correct Answer: B

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Question 10
A firm's demand curve is given by the equation \( Q = 100 - 2P \). If the price is $20, what is the quantity demanded?
Correct A. 60
B. 70
C. 80
D. 90

Correct Answer: A

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Question 11
A firm operating in a perfectly competitive market is considering a price increase. If the demand curve is inelastic, what will be the effect on the firm's revenue?
A. Revenue will increase
B. Revenue will decrease
Correct C. Revenue will remain unchanged
D. The effect on revenue is uncertain

Correct Answer: C

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Question 12
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 10Q + 100. What is the profit-maximizing price?
A. ₦50
Correct B. ₦75
C. ₦100
D. ₦125

Correct Answer: B

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Question 13
A government is considering a tax on a good with a demand curve given by Q = 100 - 2P and a supply curve given by Q = 2P. What is the deadweight loss of the tax?
A. ₦100
B. ₦200
Correct C. ₦300
D. ₦400

Correct Answer: C

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Question 14
A firm is considering an investment project with a net present value (NPV) of ₦100,000. If the \cost of capital is 10%, what is the internal rate of return (IRR)?
Correct A. 10%
B. 15%
C. 20%
D. 25%

Correct Answer: A

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Question 15
A central bank is considering a monetary policy action to reduce inflation. If the current inflation rate is 5% and the target inflation rate is 2%, what is the required reduction in the money supply?
A. 10%
B. 15%
Correct C. 20%
D. 25%

Correct Answer: C

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Question 16
The government of Nigeria has introduced a new policy to increase agricultural production. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing access to credit. However, the policy also includes a provision to increase the price of fertilizers by 20%. What is the likely effect of this policy on the agricultural sector?
A. The policy will lead to an increase in agricultural production and a decrease in the price of food.
Correct B. The policy will lead to a decrease in agricultural production and an increase in the price of food.
C. The policy will have no effect on agricultural production and the price of food.
D. The policy will lead to an increase in agricultural production, but the price of food will remain the same.

Correct Answer: B

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Question 17
A firm is producing a good with a total revenue of ₦100,000 and a total \cost of ₦80,000. The firm's marginal revenue is ₦5,000 and its marginal \cost is ₦3,000. What is the firm's profit-maximizing output?
A. 10 units
B. 20 units
Correct C. 30 units
D. 40 units

Correct Answer: C

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Question 18
The government of Nigeria has introduced a new policy to increase industrial production. The policy includes providing subsidies to industries, improving infrastructure, and increa\sing access to credit. However, the policy also includes a provision to increase the price of raw materials by 15%. What is the likely effect of this policy on the industrial sector?
A. The policy will lead to an increase in industrial production and a decrease in the price of goods.
Correct B. The policy will lead to a decrease in industrial production and an increase in the price of goods.
C. The policy will have no effect on industrial production and the price of goods.
D. The policy will lead to an increase in industrial production, but the price of goods will remain the same.

Correct Answer: B

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Question 19
A country is experiencing a trade deficit of ₦100,000. The country's imports are valued at ₦150,000 and its exports are valued at ₦50,000. What is the country's balance of payments position?
Correct A. The country has a trade deficit and a current account deficit.
B. The country has a trade surplus and a current account surplus.
C. The country has a trade deficit and a current account surplus.
D. The country has a trade surplus and a current account deficit.

Correct Answer: A

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Question 20
A firm is producing a good with a total revenue of ₦200,000 and a total \cost of ₦150,000. The firm's marginal revenue is ₦10,000 and its marginal \cost is ₦5,000. What is the firm's profit-maximizing output?
A. 20 units
Correct B. 30 units
C. 40 units
D. 50 units

Correct Answer: B

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Question 21
The government of Nigeria has introduced a new policy to increase agricultural production. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing access to credit. However, the policy also includes a provision to increase the price of fertilizers by 25%. What is the likely effect of this policy on the agricultural sector?
A. The policy will lead to an increase in agricultural production and a decrease in the price of food.
Correct B. The policy will lead to a decrease in agricultural production and an increase in the price of food.
C. The policy will have no effect on agricultural production and the price of food.
D. The policy will lead to an increase in agricultural production, but the price of food will remain the same.

Correct Answer: B

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Question 22
A country is experiencing a trade surplus of ₦50,000. The country's imports are valued at ₦100,000 and its exports are valued at ₦150,000. What is the country's balance of payments position?
Correct A. The country has a trade surplus and a current account surplus.
B. The country has a trade deficit and a current account deficit.
C. The country has a trade surplus and a current account deficit.
D. The country has a trade deficit and a current account surplus.

Correct Answer: A

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Question 23
A firm is producing a good with a total revenue of ₦300,000 and a total \cost of ₦200,000. The firm's marginal revenue is ₦15,000 and its marginal \cost is ₦10,000. What is the firm's profit-maximizing output?
A. 30 units
B. 40 units
Correct C. 50 units
D. 60 units

Correct Answer: C

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Question 24
The supply curve for a commodity is given by the equation Q = 100 + 2P, where Q is the quantity supplied and P is the price. If the demand curve is given by the equation Q = 200 - 5P, what is the equilibrium price?
A. ₦50
Correct B. ₦75
C. ₦100
D. ₦125

Correct Answer: B

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Question 25
A country's GDP is ₦10 trillion, its GNP is ₦12 trillion, and its net factor income from abroad is ₦2 trillion. What is the country's net national product?
A. ₦10 trillion
B. ₦12 trillion
Correct C. ₦14 trillion
D. ₦16 trillion

Correct Answer: C

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