POST UTME IGBINEDION UNIVERSITY 2025 Economics | Objective

Are you preparing for POST UTME IGBINEDION UNIVERSITY 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.

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Question 1
Determine the value of the elasticity of demand for a firm that experiences a 10% increase in price, resulting in a 5% decrease in quantity demanded.
Correct A. 0.5
B. 1.0
C. 1.5
D. 2.0

Correct Answer: A

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Question 2
A country's GDP is ₦1,500,000,000,000. If the population is 200,000,000, what is the per capita income?
A. ₦7,500
B. ₦7,500,000
Correct C. ₦7,500,000,000
D. ₦7,500,000,000,000

Correct Answer: C

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Question 3
A firm's production function is given by Q = 100K^\( 1/2 \)L^\( 1/2 \). If the firm increases the capital from 100 to 400, and the labor from 100 to 400, what is the percentage change in output?
A. 25%
Correct B. 50%
C. 75%
D. 100%

Correct Answer: B

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Question 4
A consumer's utility function is given by U = 2x + 3y. If the consumer's income is ₦100, and the prices of x and y are ₦5 and ₦10 respectively, what is the optimal bundle of x and y?
Correct A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 3, y = 15

Correct Answer: A

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Question 5
A firm's production function is given by Q = 100K^\( 1/2 \)L^\( 1/2 \). If the firm increases the capital from 100 to 400, and the labor from 100 to 400, what is the percentage change in output?
A. 25%
Correct B. 50%
C. 75%
D. 100%

Correct Answer: B

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Question 6
The demand for a commodity 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

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Question 7
A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production functions are given by X = 2L + 3K and Y = 3L + 2K. If the firm has 10 units of labor and 8 units of capital, what is the total output of the firm?
A. 40
B. 50
Correct C. 60
D. 70

Correct Answer: C

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Question 8
A consumer has an income of ₦1000 and faces the following prices for two goods: X = ₦200 and Y = ₦300. If the consumer's budget constraint is given by the equation 200X + 300Y = 1000, what is the consumer's optimal bundle of goods?
Correct A. X = 2, Y = 1
B. X = 3, Y = 2
C. X = 4, Y = 3
D. X = 5, Y = 4

Correct Answer: A

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Question 9
A firm has a production function given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm has 4 units of labor and 9 units of capital, what is the marginal product of labor?
A. 0.5
B. 1
Correct C. 1.5
D. 2

Correct Answer: C

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Question 10
A consumer has an indifference curve given by the equation U = 2X + 3Y, where U is the utility, X is the quantity of good X, and Y is the quantity of good Y. If the consumer's budget constraint is given by the equation 200X + 300Y = 1000, what is the consumer's optimal bundle of goods?
Correct A. X = 2, Y = 1
B. X = 3, Y = 2
C. X = 4, Y = 3
D. X = 5, Y = 4

Correct Answer: A

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Question 11
A consumer's indifference curve is given by the equation ( U(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, find the consumer's optimal bundle of x and y.
Correct A. x = 60, y = 40
B. x = 40, y = 60
C. x = 50, y = 50
D. x = 70, y = 30

Correct Answer: A

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Question 12
A firm's production function is given by \( Q = 2L^2 + 3K^2 \). If the firm's \cost function is \( C = 10L + 20K \), find the firm's optimal values of L and K.
Correct A. L = 2, K = 3
B. L = 3, K = 2
C. L = 4, K = 4
D. L = 5, K = 5

Correct Answer: A

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Question 13
The demand function for a product is given by \( Q = 100 - 2P \). If the supply function is \( Q = 2P - 10 \), find the equilibrium price and quantity.
Correct A. P = 20, Q = 60
B. P = 30, Q = 70
C. P = 40, Q = 80
D. P = 50, Q = 90

Correct Answer: A

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Question 14
A country's GDP is given by \( GDP = C + I + G + \( X - M \ \) ). If the country's consumption is ₦500 billion, investment is ₦200 billion, government exp\enditure is ₦300 billion, exports are ₦400 billion, and imports are ₦200 billion, find the country's GDP.
Correct A. ₦1.5 trillion
B. ₦1.6 trillion
C. ₦1.7 trillion
D. ₦1.8 trillion

Correct Answer: A

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Question 15
A firm's demand function is given by \( Q = 100 - 2P \). If the firm's supply function is \( Q = 2P - 10 \), find the firm's profit-maximizing price and quantity.
Correct A. P = 20, Q = 60
B. P = 30, Q = 70
C. P = 40, Q = 80
D. P = 50, Q = 90

Correct Answer: A

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Question 16
A country's inflation rate is given by \( pi = \frac{P - P_0}{P_0} \times 100 \). If the current price index is 120 and the base price index is 100, find the country's inflation rate.
Correct A. 20%
B. 30%
C. 40%
D. 50%

Correct Answer: A

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Question 17
A firm's production function is given by \( Q = 2L^2 + 3K^2 \). If the firm's \cost function is \( C = 10L + 20K \), find the firm's optimal values of L and K.
Correct A. L = 2, K = 3
B. L = 3, K = 2
C. L = 4, K = 4
D. L = 5, K = 5

Correct Answer: A

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Question 18
The demand function for a product is given by \( Q = 100 - 2P \). If the supply function is \( Q = 2P - 10 \), find the equilibrium price and quantity.
Correct A. P = 20, Q = 60
B. P = 30, Q = 70
C. P = 40, Q = 80
D. P = 50, Q = 90

Correct Answer: A

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Question 19
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

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Question 20
A firm has a production function Q = 2L^0.5K^0.5, where Q is the output, L is the labor and K is the capital. If the firm wants to increase its output by 20% and the labor increases by 10%, what is the percentage change in capital required?
A. 5%
Correct B. 10%
C. 15%
D. 20%

Correct Answer: B

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Question 21
A country has a trade deficit of $100 million and a GDP of $500 billion. If the country's exchange rate is 1 USD = 100 Naira, what is the percentage change in the value of the Naira?
A. -0.02%
B. -0.05%
Correct C. -0.1%
D. -0.2%

Correct Answer: C

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Question 22
A firm has a \cost function C = 100 + 2L + 3K, where C is the \cost, L is the labor and K is the capital. If the firm wants to minimize its \cost, what is the optimal combination of labor and capital?
Correct A. L = 50, K = 100
B. L = 100, K = 50
C. L = 150, K = 50
D. L = 50, K = 150

Correct Answer: A

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Question 23
A country has a budget deficit of 5% of its GDP and a GDP growth rate of 5%. If the country's inflation rate is 2%, what is the percentage change in the value of the government's debt?
Correct A. -0.1%
B. -0.05%
C. 0%
D. 0.05%

Correct Answer: A

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Question 24
A firm has a revenue function R = 100L + 200K, where R is the revenue, L is the labor and K is the capital. If the firm wants to maximize its revenue, what is the optimal combination of labor and capital?
A. L = 100, K = 50
Correct B. L = 50, K = 100
C. L = 150, K = 50
D. L = 50, K = 150

Correct Answer: B

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Question 25
A country has a trade surplus of $50 million and a GDP of $500 billion. If the country's exchange rate is 1 USD = 100 Naira, what is the percentage change in the value of the Naira?
A. 0.01%
Correct B. 0.05%
C. 0.1%
D. 0.2%

Correct Answer: B

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