POST UTME LAUTECH 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's demand function is Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's current price is ₦20, how many units will it sell?
A. 20 units
B. 40 units
C. 60 units
D. 80 units
Question 2
A country experiences an inflation rate of 10% and a nominal interest rate of 12%. What is the real interest rate?
A. 2%
B. 4%
C. 6%
D. 8%
Question 3
U\sing the Marshall-Lerner condition, determine the effect of a 10% depreciation in the exchange rate on the balance of payments of a country.
A. The balance of payments will improve.
B. The balance of payments will worsen.
C. The balance of payments will remain unchanged.
D. The effect on the balance of payments is uncertain.
Question 4
A firm operates in a perfectly competitive market with a demand curve given by Q = 100 - 2P and a supply curve given by Q = 10 + 3P. What is the equilibrium price and quantity?
A. P = 20, Q = 60
B. P = 30, Q = 40
C. P = 40, Q = 20
D. P = 50, Q = 10
Question 5
A firm's demand function is given by Q = 100 - 2P. If the price (P) increases by 10%, what will be the effect on the quantity demanded?
A. Quantity demanded will increase by 10%
B. Quantity demanded will decrease by 10%
C. Quantity demanded will remain unchanged
D. Quantity demanded will increase by 20%
Question 6
A firm produces two goods, X and Y, u\sing two inputs, Labour (L) and Capital (K). The production function for good X is given by X = 2L^0.5K^0.5, while that for good Y is given by Y = 3L^0.25K^0.75. If the firm has 100 units of Labour and 200 units of Capital, what is the value of the elasticity of substitution between Labour and Capital?
A. 0.5
B. 1.0
C. 1.5
D. 2.0
Question 7
A firm has a total revenue function given by TR = 100Q - 2Q^2. If the firm produces 20 units, what is the marginal revenue?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 8
A consumer has the following utility function: U = 2x^0.5y^0.5. If the prices of x and y are $2 and $3 respectively, and the consumer has an income of $100, what is the optimal bundle of x and y that the consumer will choose?
A. x = 10, y = 20
B. x = 20, y = 10
C. x = 15, y = 15
D. x = 5, y = 25
Question 9
A country's elasticity of demand is given by the equation E = \( ΔQd / ΔP \) × \( P / Qd \), where E is the elasticity of demand, ΔQd is the change in quantity demanded, ΔP is the change in price, P is the price, and Qd is the quantity demanded. If the country's demand curve is given by the equation Qd = 100 - 2P, what is the elasticity of demand when P = ₦30 and Qd = 40?
A. 0.5
B. 1.0
C. 1.5
D. 2.0
Question 10
A monopolist faces a demand curve given by \( Q = 100 - 2P \). If the marginal \cost is \( MC = 10 \), determine the profit-maximizing price and quantity.
A. \( P = 40, Q = 60 \)
B. \( P = 50, Q = 70 \)
C. \( P = 60, Q = 80 \)
D. \( P = 70, Q = 90 \)
Question 11
A firm faces the following demand and supply curves: \( D = 100 - 2P, S = 20 + P \). Determine the equilibrium price and quantity.
A. \( P = 40, Q = 60 \)
B. \( P = 50, Q = 70 \)
C. \( P = 60, Q = 80 \)
D. \( P = 70, Q = 90 \)
Question 12
A country's GNP is ₦15 trillion, its GDP is ₦12 trillion, and its net factor income from abroad is ₦1 trillion. What is its national income?
A. ₦16 trillion
B. ₦17 trillion
C. ₦18 trillion
D. ₦19 trillion
Question 13
A firm is producing a good u\sing a production function given by Q = 2L^0.5K^0.5. If the firm has 100 units of Labour and 200 units of Capital, what is the value of the marginal product of Labour?
A. 0.5
B. 1.0
C. 1.5
D. 2.0
Question 14
A country's balance of payments is given by the equation BOP = X - M, where X is the value of exports and M is the value of imports. If the country's exports are ₦1000 and its imports are ₦800, what is the country's balance of payments?
A. ₦200
B. ₦300
C. ₦400
D. ₦500
Question 15
A consumer has the following utility function: U = 2x^0.5y^0.5. If the prices of x and y are $2 and $3 respectively, and the consumer has an income of $100, what is the optimal bundle of x and y that the consumer will choose?
A. x = 10, y = 20
B. x = 20, y = 10
C. x = 15, y = 15
D. x = 5, y = 25

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