POST UTME NILE UNIVERSITY 2019 Economics | Objective

Are you preparing for POST UTME NILE UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 Economics (Objective) questions designed to simulate the real exam environment.

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Question 1
Determine the equilibrium price and quantity of a commodity in a market where the demand function is given by Qd = 100 - 2P and the supply function is given by Qs = 2P - 10. The market price is initially at ₦50.
A. ₦75, 50 units
Correct B. ₦80, 60 units
C. ₦90, 70 units
D. ₦100, 80 units

Correct Answer: B

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Question 2
A firm's total revenue is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm sells 20 units, what is its total revenue?
Correct A. ₦1,600
B. ₦1,800
C. ₦2,000
D. ₦2,200

Correct Answer: A

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Question 3
A consumer's utility function is given by U(x, y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is given by 2x + 3y = ₦100, find the optimal quantities of x and y that maximize the consumer's utility.
Correct A. x = 20, y = 10
B. x = 15, y = 20
C. x = 10, y = 30
D. x = 5, y = 40

Correct Answer: A

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Question 4
A firm's demand function is given by Qd = 100 - 2P, where P is the price of the commodity. If the firm's supply function is given by Qs = 2P - 10, find the price elasticity of demand when the price is ₦50.
Correct A. 0.5
B. 1.0
C. 1.5
D. 2.0

Correct Answer: A

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Question 5
The Nigerian government has implemented a policy to increase agricultural production by providing subsidies to farmers. However, this policy has led to an increase in the price of agricultural products. Analyze the impact of this policy on the agricultural sector and the overall economy.
A. The policy has increased agricultural production and reduced the price of agricultural products.
B. The policy has increased agricultural production but has not affected the price of agricultural products.
Correct C. The policy has decreased agricultural production and increased the price of agricultural products.
D. The policy has decreased agricultural production but has not affected the price of agricultural products.

Correct Answer: C

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Question 6
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, find the percentage change in quantity demanded when the price increases by 10%.
A. 5%
Correct B. 10%
C. 15%
D. 20%

Correct Answer: B

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Question 7
A monopolist faces a demand curve given by Qd = 100 - 2P and a \cost function C(Q) = 2Q^2. If the firm produces 20 units, what is the profit-maximizing price?
A. ₦20
B. ₦30
Correct C. ₦40
D. ₦50

Correct Answer: C

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Question 8
The money market equilibrium is given by the equation MS = MZ, where MS is the money supply and MZ is the money demand. If the money supply is ₦100 billion and the money demand is ₦80 billion, what is the interest rate?
A. 10%
Correct B. 15%
C. 20%
D. 25%

Correct Answer: B

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Question 9
A firm is producing a good with a production function Q = 2L^0.5, where Q is the quantity produced and L is the labor input. If the wage rate is ₦100 per hour, what is the profit-maximizing level of labor input?
A. 10 hours
Correct B. 20 hours
C. 30 hours
D. 40 hours

Correct Answer: B

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Question 10
The supply of a good is given by the equation QS = 2P + 10, where QS is the quantity supplied and P is the price. If the price elasticity of supply is 0.5, find the percentage change in quantity supplied when the price increases by 10%.
A. 5%
Correct B. 10%
C. 15%
D. 20%

Correct Answer: B

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Question 11
A country's GDP is calculated as the sum of all final goods and services produced within its borders. However, this measure does not account for the value of unpaid household work, such as childcare and household chores. Which of the following is a limitation of GDP as a measure of a nation's economic activity?
A. It does not account for the value of imports.
B. It does not account for the value of exports.
Correct C. It does not account for the value of unpaid household work.
D. It does not account for the value of government sp\ending.

Correct Answer: C

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Question 12
A firm's demand curve is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, what is the price at which the firm will sell 80 units?
A. ₦20
Correct B. ₦30
C. ₦40
D. ₦50

Correct Answer: B

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Question 13
A central bank uses the following monetary policy tools to control inflation: open market operations, reserve requirements, and discount rate. Which of the following is NOT a direct effect of an increase in the discount rate?
A. Reduced borrowing \costs for commercial banks.
B. Increased reserve requirements for commercial banks.
C. Increased interest rates for consumers.
Correct D. Increased money supply in the economy.

Correct Answer: D

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Question 14
A country's national income is calculated as the sum of all factor incomes earned within its borders. However, this measure does not account for the value of unpaid household work, such as childcare and household chores. Which of the following is a limitation of national income as a measure of a nation's economic activity?
A. It does not account for the value of imports.
B. It does not account for the value of exports.
Correct C. It does not account for the value of unpaid household work.
D. It does not account for the value of government sp\ending.

Correct Answer: C

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Question 15
A firm's supply curve is given by the equation Qs = 2P + 50, where Qs is the quantity supplied and P is the price. If the price elasticity of supply is 2, what is the price at which the firm will sell 120 units?
A. ₦20
B. ₦30
Correct C. ₦40
D. ₦50

Correct Answer: C

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Question 16
The concept of scarcity in economics is best described as:
A. The ability to produce more goods and services with the same amount of resources.
Correct B. The inability to produce more goods and services with the same amount of resources.
C. The ability to produce more goods and services with fewer resources.
D. The inability to produce more goods and services with fewer resources.

Correct Answer: B

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Question 17
A farmer produces 100 units of wheat and 50 units of maize. If the price of wheat is ₦5 per unit and the price of maize is ₦3 per unit, what is the total value of the farmer's output?
A. ₦500
B. ₦550
Correct C. ₦600
D. ₦650

Correct Answer: C

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Question 18
The elasticity of demand for a product is 0.5. If the price of the product increases by 10%, what is the percentage change in the quantity demanded?
A. -5%
Correct B. -10%
C. -15%
D. -20%

Correct Answer: B

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Question 19
A government imposes a tax of ₦10 per unit on a product. If the price of the product is ₦50 per unit, what is the tax revenue collected by the government?
A. ₦100
Correct B. ₦500
C. ₦1000
D. ₦5000

Correct Answer: B

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Question 20
A firm produces 100 units of a product and sells it at a price of ₦50 per unit. If the firm's fixed \cost is ₦5000 and its variable \cost is ₦30 per unit, what is the firm's profit?
A. ₦5000
B. ₦10000
Correct C. ₦15000
D. ₦20000

Correct Answer: C

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Question 21
A government budget has a total exp\enditure of ₦100 billion and a total revenue of ₦80 billion. What is the budget deficit?
A. ₦10 billion
B. ₦20 billion
Correct C. ₦30 billion
D. ₦40 billion

Correct Answer: C

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Question 22
A firm's production function is given by Q = 2L + 3K, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm uses 10 units of labor and 5 units of capital, what is the quantity produced?
A. 20
Correct B. 30
C. 40
D. 50

Correct Answer: B

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Question 23
A government imposes a tax of 10% on a product. If the price of the product is ₦100 per unit, what is the tax revenue collected by the government?
A. ₦10
Correct B. ₦20
C. ₦30
D. ₦40

Correct Answer: B

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Question 24
A firm's \cost function is given by C = 2L + 3K, where C is the total \cost, L is the labor input, and K is the capital input. If the firm uses 10 units of labor and 5 units of capital, what is the total \cost?
A. 20
Correct B. 30
C. 40
D. 50

Correct Answer: B

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Question 25
A government budget has a total exp\enditure of ₦100 billion and a total revenue of ₦80 billion. What is the budget surplus?
A. ₦10 billion
B. ₦20 billion
C. ₦30 billion
D. ₦40 billion

Correct Answer: VIEW ANSWER

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