Exam Body

Year

Subject

Paper Type

POST UTME LASU 2023 Economics | Objective

Are you preparing for POST UTME LASU exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2023 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1

A firm operating in a perfectly competitive market produces two goods, A and B. The production of good A is characterized by increa\sing returns to scale, while the production of good B exhibits decrea\sing returns to scale. If the firm's \cost function is given by C(q) = 2q^2 + 5q + 10, where q is the total output, what is the firm's optimal output level for good A?

A. 100 units

Correct B. 50 units

C. 200 units

D. 300 units

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 2

A government is considering implementing a new tax on a particular good. The demand for the good is given by Q_d = 100 - 2P, where Q_d is the quantity demanded and P is the price. The supply of the good is given by Q_s = 2P - 10, where Q_s is the quantity supplied. If the government wants to raise revenue of ₦100,000, what is the optimal tax rate?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 3

A monopolist faces a demand curve given by Q_d = 100 - 2P and a \cost function given by C(q) = 2q^2 + 5q + 10. If the firm's marginal revenue is given by MR = 200 - 2q, what is the firm's optimal output level?

A. 50 units

B. 75 units

Correct C. 100 units

D. 125 units

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 4

A firm is considering investing in a new project. The project has a \cost of ₦100,000 and is expected to generate a revenue of ₦150,000. If the firm's \cost of capital is 10%, what is the project's net present value?

A. ₦50,000

Correct B. ₦75,000

C. ₦100,000

D. ₦125,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 5

A government is considering implementing a new policy to reduce poverty. The policy involves providing a subsidy to a particular good. The demand for the good is given by Q_d = 100 - 2P, where Q_d is the quantity demanded and P is the price. The supply of the good is given by Q_s = 2P - 10, where Q_s is the quantity supplied. If the government wants to reduce poverty by increa\sing the quantity demanded of the good, what is the optimal subsidy?

A. ₦10

Correct B. ₦20

C. ₦30

D. ₦40

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 6

The Central Bank of Nigeria (CBN) has implemented a monetary policy aimed at reducing inflation. If the money supply increases by 10% and the velocity of money remains cons\tant, what will be the effect on the price level?

A. Increase by 10%

B. Decrease by 10%

Correct C. Remain unchanged

D. Increase by 20%

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 7

A firm is producing a good with a total revenue of ₦1,500 and a total \cost of ₦1,200. If the price elasticity of demand is 0.5, what is the price elasticity of supply?

A. 0.5

Correct B. 1.5

C. 2.5

D. 3.5

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 8

The government of Nigeria has implemented a tax on imported goods to raise revenue. If the tax rate is 10% and the price of the good is ₦100, what is the tax revenue?

Correct A. ₦10

B. ₦20

C. ₦30

D. ₦40

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 9

A farmer is producing wheat with a total revenue of ₦2,000 and a total \cost of ₦1,800. If the price elasticity of demand is 0.8, what is the price elasticity of supply?

A. 0.8

Correct B. 1.8

C. 2.8

D. 3.8

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 10

The government of Nigeria has implemented a policy to increase agricultural production. If the production function is Q = 2L + 3K, where Q is the quantity produced, L is the labor input, and K is the capital input, what is the marginal product of labor?

Correct A. 2

B. 4

C. 6

D. 8

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 11

A firm operating in a perfectly competitive market produces two goods, A and B. The production of good A is subject to increa\sing returns to scale, while the production of good B is subject to decrea\sing returns to scale. If the firm's production function for good A is given by Q_A = 2L^2 + 3K, and the production function for good B is given by Q_B = 4L - 2K, where L is labor and K is capital, what is the firm's optimal input combination?

Correct A. L = 2, K = 1

B. L = 1, K = 2

C. L = 3, K = 0

D. L = 0, K = 3

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 12

A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is given by 2x + 3y = 12, and the prices of the two goods are given by p_x = 2 and p_y = 3, what is the consumer's optimal consumption bundle?

Correct A. x = 2, y = 4

B. x = 4, y = 2

C. x = 6, y = 0

D. x = 0, y = 6

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 13

A monopolist faces a demand curve given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the monopolist's marginal \cost function is given by MC = 10 + 2Q, what is the monopolist's optimal price and quantity?

Correct A. P = 50, Q = 25

B. P = 75, Q = 12.5

C. P = 100, Q = 0

D. P = 0, Q = 50

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 14

A government is considering implementing a tax on a particular good. The demand curve for the good is given by Q = 100 - 2P, and the supply curve is given by Q = 20 + 2P. If the government wants to raise revenue of ₦1000, what is the optimal tax rate?

A. P = 20, Q = 40

Correct B. P = 30, Q = 35

C. P = 40, Q = 30

D. P = 50, Q = 25

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 15

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 country's consumption is given by C = 100 + 0.8Y, the investment is given by I = 20 + 0.2Y, and the government sp\ending is given by G = 50, what is the country's GDP?

A. Y = 200

B. Y = 250

Correct C. Y = 300

D. Y = 350

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 16

The production function for a firm is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm increases labor from 100 to 121 units, and capital from 100 to 121 units, what is the percentage change in output?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 17

A monopolist faces a demand curve given by P = 100 - 2Q. The marginal revenue function is MR = 50 - 2Q. What is the profit-maximizing quantity?

A. 20

B. 30

Correct C. 40

D. 50

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 18

A consumer has the following utility function: U = 2x + 3y. The budget constraint is 2x + 3y = 12. What is the consumer's optimal bundle?

A. x = 2, y = 4

Correct B. x = 3, y = 3

C. x = 4, y = 2

D. x = 5, y = 1

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 19

The money market equilibrium is given by the equation: M = kPY, where M is the money supply, k is a cons\tant, P is the price level, and Y is real GDP. If the money supply increases from 100 to 120, and the price level increases from 2 to 3, what is the new equilibrium real GDP?

A. 50

B. 60

Correct C. 70

D. 80

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 20

A firm is producing a good u\sing the production function Q = 3L^0.5K^0.5. The firm's \cost function is C = 2L + 3K. What is the firm's profit-maximizing input bundle?

A. L = 4, K = 4

Correct B. L = 6, K = 2

C. L = 8, K = 1

D. L = 10, K = 0

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 21

A firm operates in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will be the effect on the firm's output?

Correct A. The firm will increase its output.

B. The firm will decrease its output.

C. The firm's output will remain unchanged.

D. The firm will exit the market.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 22

A consumer's indifference curve is represented by the equation ( U(x,y) = 2x + 3y ). If the consumer's budget constraint is \( 2x + 3y = 12 \), what is the consumer's optimal bundle?

Correct A. x = 2, y = 4

B. x = 4, y = 2

C. x = 3, y = 3

D. x = 1, y = 5

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 23

A monopolist faces a demand curve given by \( Q = 100 - 2P \). If the firm's marginal \cost is \( MC = 10 \), what is the monopolist's optimal price?

A. P = 40

Correct B. P = 50

C. P = 60

D. P = 70

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 24

A country's GDP is given by \( GDP = C + I + G + \( X - M \ \) ). If the country's consumption is \( C = 100 \), investment is \( I = 50 \), government sp\ending is \( G = 20 \), exports are \( X = 30 \), and imports are \( M = 10 \), what is the country's GDP?

A. GDP = 180

B. GDP = 190

Correct C. GDP = 200

D. GDP = 210

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 25

A firm's production function is given by \( Q = 2L^{1/2}K^{1/2} \). If the firm's labor input is \( L = 4 \) and capital input is \( K = 9 \), what is the firm's output?

A. Q = 12

B. Q = 16

Correct C. Q = 20

D. Q = 24

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows

Help others prepare! Share this practice hub:

Chat with Support