POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Suppose a firm's marginal revenue (MR) and marginal \cost (MC) curves intersect at a point where MR = 120 and MC = 100. If the firm's demand curve is given by Q = 100 - 2P, and the firm's total \cost (TC) function is TC = 200 + 20Q + 0.5Q^2, what is the firm's optimal price (P) and quantity (Q) at the point of equilibrium?
A. \( P = 40, Q = 30 \)
B. \( P = 50, Q = 25 \)
C. \( P = 60, Q = 20 \)
D. \( P = 70, Q = 15 \)
Question 2
A country's GDP is given by the equation Y = C + I + G, where Y is the GDP, C is the consumption, I is the investment and G is the government sp\ending. If the consumption is ₦100 billion, the investment is ₦50 billion and the government sp\ending is ₦20 billion, find the GDP.
A. ₦170 billion
B. ₦180 billion
C. ₦190 billion
D. ₦200 billion
Question 3
The government of Nigeria has introduced a new policy aimed at increa\sing the production of rice in the country. The policy includes a subsidy of ₦50 per ki\logram of rice produced. If a farmer produces 10,000 ki\lograms of rice, how much subsidy will they receive?
A. ₦500,000
B. ₦500,000
C. ₦500,000
D. ₦500,000
Question 4
A monopolist's demand function is given by Q = 100 - 2P. If the monopolist's output is 60 units, what is the monopolist's price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 5
A country's GNP is ₦15 trillion. If the country has a trade deficit of ₦2 trillion, what is the country's GDP?
A. ₦13 trillion
B. ₦15 trillion
C. ₦17 trillion
D. ₦19 trillion
Question 6
A firm's production function is given by Q = 2L^0.5H^0.5. If the wage rate is ₦100 per hour and the rental rate is ₦50 per hour, find the optimal level of labor (L) and capital (H) that maximizes profits.
A. L = 100, H = 100
B. L = 50, H = 50
C. L = 200, H = 200
D. L = 150, H = 150
Question 7
The concept of diminishing marginal utility is a fundamental principle in the theory of consumer behavior. Which of the following best describes this concept?
A. The law of diminishing marginal utility states that as the quantity of a good consumed increases, the marginal utility derived from each additional unit decreases.
B. The law of diminishing marginal utility states that as the quantity of a good consumed increases, the marginal utility derived from each additional unit remains cons\tant.
C. The law of diminishing marginal utility states that as the quantity of a good consumed increases, the marginal utility derived from each additional unit increases.
D. The law of diminishing marginal utility states that as the quantity of a good consumed increases, the marginal utility derived from each additional unit is unaffected.
Question 8
A country's balance of payments account includes the following items: exports, imports, and net factor income from abroad. If a country's exports are ₦5,000,000,000, its imports are ₦6,000,000,000, and its net factor income from abroad is ₦1,000,000,000, what is the balance of payments deficit?
A. ₦1,000,000,000
B. ₦1,000,000,000
C. ₦1,000,000,000
D. ₦1,000,000,000
Question 9
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input levels are L = 16 and K = 9, what is the marginal product of labor (MPL) at these input levels?
A. 1
B. 2
C. 3
D. 4
Question 10
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the firm's output is 16 units when L = 4 and K = 9, what is the marginal product of labor?
A. 4
B. 6
C. 8
D. 10
Question 11
A monopolistically competitive firm faces a demand curve given by Q = 100 - 2P. The firm's marginal \cost curve is MC = 10 + 2Q. Assuming the firm is currently producing at the profit-maximizing level, what is the price at which the firm is selling its product?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 12
A country's GDP is ₦10 trillion. If the government imposes a 10% tax on the GDP, what is the new GDP?
A. ₦9 trillion
B. ₦11 trillion
C. ₦10 trillion
D. ₦12 trillion
Question 13
A consumer's budget constraint is given by 2x + 3y = 12. If the price of x is 2, what is the optimal level of x?
A. 2
B. 4
C. 6
D. 8
Question 14
A government wants to increase its agricultural production by 20% within the next year. If the current agricultural production is 10,000 metric tons, what is the required increase in agricultural production?
A. 2,000 metric tons
B. 4,000 metric tons
C. 6,000 metric tons
D. 8,000 metric tons
Question 15
A country's GDP at market price is ₦500 billion, and its GDP at factor \cost is ₦480 billion. What is the value of the indirect tax?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion

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