POST UTME GREENFIELD UNIVERSITY 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 100L^0.5K^0.5. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦200 per unit, calculate the marginal product of labor (MPL) when L = 10 units.
A. 5
B. 10
C. 15
D. 20
Question 2
Agricultural development in Nigeria has been hindered by several factors, including inadequate infrastructure, lack of access to credit, and limited market information. Which of the following policies would be most effective in addres\sing these challenges?
A. Increa\sing government subsidies for agricultural inputs.
B. Establishing a national agricultural extension service.
C. Implementing a cash transfer program for smallholder farmers.
D. Providing training on modern farming techniques.
Question 3
The concept of scarcity in economics implies that the production of one good or service is limited by the availability of resources, which can be used to produce other goods or services. This is an example of a trade-off between two competing goals. Which of the following is a correct statement about trade-offs?
A. Trade-offs are always voluntary.
B. Trade-offs involve a sacrifice of one good or service for another.
C. Trade-offs are always involuntary.
D. Trade-offs are only relevant in the short run.
Question 4
A country's GDP is given by the equation GDP = C + I + G + \( X - M \). What is the term for the difference between a country's exports and imports?
A. Trade deficit
B. Trade surplus
C. Current account deficit
D. Current account surplus
Question 5
A monopolist faces a demand curve given by P = 100 - 2Q. The marginal revenue (MR) function is given by MR = 100 - 4Q. Find the profit-maximizing quantity of output.
A. 20
B. 30
C. 40
D. 50
Question 6
A firm's production function is given by Q = 100L^0.5K^0.5. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦200 per unit, calculate the opportunity \cost of one additional unit of labor in terms of capital.
A. ₦100
B. ₦200
C. ₦50
D. ₦150
Question 7
A consumer's indifference curve is a graphical representation of the various combinations of two goods that yield the same level of satisfaction. What is the term for the slope of the indifference curve?
A. Marginal rate of substitution
B. Marginal rate of transformation
C. Marginal utility
D. Opportunity \cost
Question 8
A firm's production function is given by Q = 2L^0.5K^0.5. What is the marginal product of labor?
A. \frac{L^{0.5}K^{0.5}}{2L}
B. \frac{L^{0.5}K^{0.5}}{2K}
C. \frac{L^{0.5}K^{0.5}}{2}
D. \frac{L^{0.5}K^{0.5}}{2L^2}
Question 9
The Gross Domestic Product (GDP) of a country is a widely used indicator of economic activity. Which of the following is a correct statement about GDP?
A. GDP measures the total value of all goods and services produced within a country's borders.
B. GDP measures the total value of all goods and services produced by a country's citizens, regardless of where they are produced.
C. GDP measures the total value of all goods and services consumed within a country.
D. GDP measures the total value of all goods and services imported into a country.
Question 10
The Balance of Payments (BOP) is a statistical statement that summarizes a country's international transactions over a specific period of time. Which of the following is a correct statement about the BOP?
A. The BOP measures the total value of a country's exports and imports.
B. The BOP measures the total value of a country's foreign exchange reserves.
C. The BOP measures the total value of a country's international transactions, including trade, investment, and services.
D. The BOP measures the total value of a country's domestic production.
Question 11
A monopolist faces a demand curve given by P = 100 - 2Q. The marginal revenue (MR) function is given by MR = 100 - 4Q. Find the profit-maximizing price.
A. 50
B. 60
C. 70
D. 80
Question 12
The elasticity of demand for a commodity is given by the formula \( eta = \frac{p}{x} \frac{dx}{dp} \). If the price of the commodity increases by 10% and the quantity demanded decreases by 5%, what is the elasticity of demand?
A. 0.5
B. 1.0
C. 1.5
D. 2.0
Question 13
A firm's total revenue (TR) function is given by TR = 100Q - 2Q^2. If the firm sells Q = 20 units, calculate the elasticity of demand.
A. 0.5
B. 1
C. 2
D. 3
Question 14
The concept of opportunity \cost is closely related to the concept of scarcity. Which of the following statements accurately describes the relationship between these two concepts?
A. Opportunity \cost is the \cost of producing one good or service instead of another.
B. Opportunity \cost is the benefit of producing one good or service instead of another.
C. Opportunity \cost is the \cost of not producing one good or service.
D. Opportunity \cost is the benefit of not producing one good or service.
Question 15
A consumer's utility function is given by \( U = 2x + 3y \), where x and y are the quantities of two goods consumed. If the prices of the two goods are ₦10 and ₦20 respectively, and the consumer's income is ₦100, what is the optimal combination of x and y that maximizes utility?
A. x = 5, y = 10
B. x = 10, y = 20
C. x = 15, y = 30
D. x = 20, y = 40

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