POST UTME KSU 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's GDP is ( ₦ 100,000 ) billion, and its GNP is ( ₦ 120,000 ) billion. What is the country's net factor income from abroad?
A. ( ₦ 20,000 ) billion
B. ( ₦ 30,000 ) billion
C. ( ₦ 40,000 ) billion
D. ( ₦ 50,000 ) billion
Question 2
A consumer has a budget of ₦1000 and faces the following prices for two goods: Good A = ₦200 and Good B = ₦300. U\sing the budget constraint, what is the consumer's optimal bundle?
A. Good A = 4, Good B = 2
B. Good A = 3, Good B = 3
C. Good A = 2, Good B = 4
D. Good A = 5, Good B = 1
Question 3
Consider a closed economy with a GDP of ₦100 billion and a net factor income from abroad of ₦10 billion. Calculate the country's GNP.
A. ₦110 billion
B. ₦105 billion
C. ₦100 billion
D. ₦95 billion
Question 4
Consider a firm operating in a perfectly competitive market with a production function given by Q = 2L^0.5K^0.5. If the firm's current inputs are L = 16 and K = 9, calculate the marginal product of labor (MPL) and marginal product of capital (MPK).
A. MPL = 0.5K^0.5 / L^0.5, MPK = 0.5L^0.5 / K^0.5
B. MPL = 0.25K^0.5 / L^0.5, MPK = 0.25L^0.5 / K^0.5
C. MPL = 0.5L^0.5 / K^0.5, MPK = 0.5K^0.5 / L^0.5
D. MPL = 0.25L^0.5 / K^0.5, MPK = 0.25K^0.5 / L^0.5
Question 5
The Nigerian government has implemented a policy to increase the production of rice in the country. If the government sp\ends ₦10 billion on subsidies for rice farmers and the price of rice increases by 20% due to the subsidies, what is the change in the Consumer Price Index (CPI) for rice?
A. 10%
B. 20%
C. 30%
D. 40%
Question 6
The concept of scarcity in economics implies that the production of one good is impossible without the simul\taneous production of another good. Which of the following is a correct statement regarding the opportunity \cost of producing one good?
A. The opportunity \cost is the value of the next best alternative good that could have been produced.
B. The opportunity \cost is the value of the good that is given up when producing another good.
C. The opportunity \cost is the value of the good that is produced in excess of the demand.
D. The opportunity \cost is the value of the good that is not produced at all.
Question 7
Consider a firm that produces a good with a price elasticity of demand of 2. If the firm increases the price of the good by 10%, calculate the percentage change in quantity demanded.
A. -20%
B. -10%
C. 0%
D. 10%
Question 8
A country's balance of payments (BOP) accounts show a trade deficit of ₦50 billion. If the country's foreign exchange reserves are ₦100 billion, what is the percentage change in the country's foreign exchange reserves?
A. -50%
B. -25%
C. 0%
D. 25%
Question 9
A bank has a reserve requirement of 10% and a cash reserve of ₦50 million. If the bank's deposits are ₦500 million, calculate the bank's maximum l\ending capacity.
A. ₦450 million
B. ₦500 million
C. ₦550 million
D. ₦600 million
Question 10
A firm's demand curve is given by Q = 100 - 2P and its supply curve is given by Q = 2P - 10. What is the firm's profit-maximizing price and quantity?
A. P = 20, Q = 30
B. P = 15, Q = 25
C. P = 10, Q = 20
D. P = 25, Q = 35
Question 11
A firm's production function is Q = 3L^0.5K^0.5. If the price of the good is P = 10, and the firm's \cost function is C = 2L + 3K, what is the optimal level of output Q that maximizes profit?
A. 20
B. 30
C. 40
D. 50
Question 12
A country's balance of payments is given by \( BOP = 100 + 20 - 30 \). What is the country's balance of payments?
A. ( 90 )
B. ( 100 )
C. ( 110 )
D. ( 120 )
Question 13
A firm's demand function is Q = 100 - 2P, and its supply function is Q = 2P - 50. What is the equilibrium price and quantity?
A. P = 25, Q = 75
B. P = 50, Q = 100
C. P = 75, Q = 125
D. P = 100, Q = 150
Question 14
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the price of the good is P = 10, and the firm's \cost function is C = 2L + 3K, what is the optimal level of output Q that maximizes profit?
A. 20
B. 30
C. 40
D. 50
Question 15
A firm's production function is Q = 3L^0.5K^0.5. If the price of the good is P = 10, and the firm's \cost function is C = 2L + 3K, what is the optimal level of output Q that maximizes profit?
A. 20
B. 30
C. 40
D. 50

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