POST UTME MOUNTAIN TOP UNIVERSITY 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A government in Nigeria decides to impose a tax on a particular good. Which of the following is a consequence of this tax?
A. The supply curve shifts to the left
B. The demand curve shifts to the right
C. The equilibrium price increases
D. The equilibrium quantity decreases
Question 2
A consumer has a utility function given by U = 2x + 3y, where x and y are the quantities of two goods consumed. The prices of the goods are ₦10 and ₦20, respectively. What is the consumer's indifference curve?
A. U = 2x + 3y
B. U = 3x + 2y
C. U = x + 2y
D. U = 2x + y
Question 3
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's budget constraint is 2x + 3y = 12, what is the consumer's optimal bundle of goods?
A. x = 2, y = 4
B. x = 4, y = 2
C. x = 3, y = 3
D. x = 1, y = 1
Question 4
A consumer has a utility function given by U = 2x + 3y, where x and y are the quantities of two goods consumed. The prices of the goods are ₦10 and ₦20, respectively. What is the consumer's budget constraint?
A. 10x + 20y = 100
B. 10x + 20y = 200
C. 10x + 20y = 300
D. 10x + 20y = 400
Question 5
The government of Nigeria has implemented a policy to increase the production of rice in the country. The policy includes providing subsidies to farmers and investing in irrigation infrastructure. However, the policy has also led to an increase in the price of rice in the international market. U\sing the concept of opportunity \cost, explain why the government's policy may not be effective in increa\sing rice production in the country.
A. The government's policy has led to an increase in the price of rice in the international market, making it less competitive for Nigerian farmers.
B. The government's policy has led to an increase in the production of rice in the country, but the increased production has not been matched by an increase in demand.
C. The government's policy has led to an increase in the production of rice in the country, but the increased production has not been matched by an increase in the quality of the rice.
D. The government's policy has led to an increase in the production of rice in the country, but the increased production has not been matched by an increase in the price of rice in the country.
Question 6
A firm's demand function is given by Q = 100 - 2P + 3Y, where Q is the quantity demanded, P is the price, and Y is the income. If the price elasticity of demand is -2, what is the price elasticity of demand with respect to income?
A. 6
B. -1
C. 4
D. 3
Question 7
A firm in Nigeria faces a market structure with a \single buyer and multiple sellers. Which of the following is a characteristic of this market structure?
A. The market structure is perfectly competitive
B. The market structure is monopolistically competitive
C. The market structure is oligopolistic
D. The market structure is monopsonistic
Question 8
A farmer is considering whether to adopt a new techno\logy that will increase crop yields by 10%. If the \cost of the techno\logy is ₦5000 and the price of the crop is ₦2000 per unit, what is the break-even point for the farmer?
A. ₦2500
B. ₦5000
C. ₦7500
D. ₦10000
Question 9
A firm's \cost function is given by C = 100 + 2Q + 0.5Q^2, where Q is the quantity produced. If the firm produces 10 units, what is the total \cost?
A. 150
B. 200
C. 250
D. 300
Question 10
A firm produces a product with a demand curve given by Q = 100 - 2P and a \cost function C = 2Q^2 + 10Q. What is the firm's revenue function?
A. R = 50P
B. R = 75P
C. R = 100P
D. R = 125P
Question 11
A monopolist firm produces a product with a demand curve given by Q = 100 - 2P and a \cost function C = 2Q^2 + 10Q. What is the profit-maximizing price of the product?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 12
A consumer is faced with a budget constraint of ₦1000. If the price of good X is ₦200 and the price of good Y is ₦300, what is the opportunity \cost of consuming one more unit of good X?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 13
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to increase its output by 20%, what is the required percentage increase in labor and capital?
A. 10% increase in labor and 10% increase in capital
B. 15% increase in labor and 15% increase in capital
C. 20% increase in labor and 20% increase in capital
D. 25% increase in labor and 25% increase in capital
Question 14
A farmer in Nigeria decides to cultivate a new crop. Which of the following is a factor that affects the supply of the crop?
A. Price of the crop
B. Weather conditions
C. Government policies
D. All of the above
Question 15
A monopolistically competitive firm faces a downward-sloping demand curve. Which of the following is a characteristic of this market structure?
A. Barriers to entry are high
B. Firms produce differentiated products
C. Firms face a perfectly elastic demand curve
D. Firms produce homogeneous products

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