POST UTME MADONNA UNIVERSITY 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's \cost function is given by C = 2L + 3K. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in the firm's total \cost?
A. 5%
B. 10%
C. 15%
D. 20%
Question 2
Consider a country with a GDP of ₦10 trillion and a GNP of ₦12 trillion. If the country's net factor income from abroad is ₦2 trillion, what is the value of its net foreign investment?
A. ₦8 trillion
B. ₦10 trillion
C. ₦12 trillion
D. ₦14 trillion
Question 3
A firm's demand curve is given by Qd = 100 - 2P, and its supply curve is given by Qs = 50 + 3P. Find the equilibrium price and quantity.
A. \( P = 20, Q = 80 \)
B. \( P = 30, Q = 70 \)
C. \( P = 40, Q = 60 \)
D. \( P = 50, Q = 50 \)
Question 4
A country's GDP at market price is ₦1,500,000,000,000, and its GDP at factor \cost is ₦1,400,000,000,000. Calculate the indirect tax.
A. ₦100,000,000,000
B. ₦200,000,000,000
C. ₦300,000,000,000
D. ₦400,000,000,000
Question 5
A firm is producing a good with the following production function: Q = 2L^0.5K^0.5. If the firm increases its labor input from 100 units to 120 units, and the capital input remains cons\tant at 100 units, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 6
Consider a country with a balance of payments deficit of ₦500 billion. If the country's foreign exchange reserves are ₦2 trillion, what is the percentage change in the value of the country's currency?
A. -10%
B. -5%
C. 0%
D. +5%
Question 7
A country's GDP at market price is ₦1,200 billion, while its GNP at market price is ₦1,250 billion. What is the net factor income from abroad?
A. ₦50 billion
B. ₦100 billion
C. ₦150 billion
D. ₦200 billion
Question 8
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its output from 100 units to 120 units, and the price elasticity of demand is 2, what is the percentage change in total revenue?
A. 10%
B. 20%
C. 30%
D. 40%
Question 9
A firm is producing a good with the following production function: Q = 2L^0.5K^0.5. If the firm increases its capital input from 100 units to 120 units, and the labor input remains cons\tant at 100 units, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 10
A country's GDP is calculated as the sum of the value of all final goods and services produced within its borders. If a country's GDP is ₦1,000,000 and its GNP is ₦1,200,000, what is the value of the country's net factor income from abroad?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 11
A country's GDP is ₦1,000,000,000,000, and its GNP is ₦1,100,000,000,000. Calculate the net factor income from abroad.
A. ₦100,000,000,000
B. ₦200,000,000,000
C. ₦300,000,000,000
D. ₦400,000,000,000
Question 12
A firm's demand function is given by Q = 100 - 2P. If the price elasticity of demand is -2, what is the price at which the firm sells 80 units?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 13
A firm's \cost function is given by the equation C = 100 + 2x + 3x^2, where x is the number of units produced. If the firm produces 20 units, what is the total \cost?
A. ₦2,200
B. ₦2,400
C. ₦2,600
D. ₦2,800
Question 14
A firm operating in a monopoly market has a demand curve given by Qd = 100 - 2P and a marginal revenue function of MR = 20 - 2Q. Find 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 15
Determine the equilibrium price and quantity of a perfectly competitive market, given the following supply and demand equations:\n\nSupply: Qs = 100 + 2P\nDemand: Qd = 200 - 3P
A. \( P = 10, Q = 150 \)
B. \( P = 20, Q = 100 \)
C. \( P = 30, Q = 50 \)
D. \( P = 40, Q = 0 \)

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