POST UTME NILE UNIVERSITY 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is producing a good with a production function Q = 2L^2 + 3K. If the prices of labor and capital are $10 and $20 respectively, and the firm has a budget of $100, determine the optimal quantities of labor and capital to use.
A. L = 2, K = 5
B. L = 5, K = 2
C. L = 3, K = 4
D. L = 4, K = 3
Question 2
A government's budget constraint is given by B = T + I. If the government's tax revenue (T) is ₦100 billion and the government's investment (I) is ₦50 billion, what is the government's budget (B)?
A. ₦100 billion
B. ₦125 billion
C. ₦150 billion
D. ₦175 billion
Question 3
A monopolist's demand function is given by \( Q = 100 - 2P \). If the firm's marginal \cost is ₦20, find the optimal price and quantity u\sing the first-order condition.
A. P = ₦40, Q = 30
B. P = ₦30, Q = 40
C. P = ₦20, Q = 50
D. P = ₦10, Q = 60
Question 4
A government budget is given by B = T + I. If the government's tax revenue (T) is ₦100 billion and the government's investment (I) is ₦50 billion, what is the government's budget (B)?
A. ₦100 billion
B. ₦125 billion
C. ₦150 billion
D. ₦175 billion
Question 5
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, what is the percentage change in quantity demanded when the price increases by 10%?
A. 5%
B. 10%
C. 15%
D. 20%
Question 6
A country's GDP is given by the equation Y = C + I + G + \( X - M \), where Y is the GDP, C is the consumption, I is the investment, G is the government sp\ending, X is the exports, and M is the imports. If the country's GDP is ₦10 trillion, and the consumption is ₦3 trillion, the investment is ₦1 trillion, the government sp\ending is ₦2 trillion, the exports are ₦2 trillion, and the imports are ₦1 trillion, what is the value of the imports?
A. ₦1 trillion
B. ₦2 trillion
C. ₦3 trillion
D. ₦4 trillion
Question 7
A monopolist faces a demand curve given by Qd = 100 - 2P. If the marginal revenue (MR) is 50, what is the price elasticity of demand?
A. 0.5
B. 1
C. 2
D. 3
Question 8
A firm's \cost function is given by C = 2L + 3K. If the firm's output is 16 units when the number of workers (L) is 4 and the amount of capital (K) is 4, what is the firm's average \cost (AC) when L = 9 and K = 9?
A. ₦2
B. ₦3
C. ₦4
D. ₦5
Question 9
A firm's \cost function is given by \( C = 100K + 200L \). If the firm's revenue function is given by \( R = 300K + 400L \), find the value of the elasticity of demand u\sing the midpoint method.
A. 0.5
B. 1
C. 2
D. 3
Question 10
A firm is producing a good with a production function Q = 2L^2 + 3K. If the prices of labor and capital are $10 and $20 respectively, and the firm has a budget of $100, determine the optimal quantities of labor and capital to use.
A. L = 2, K = 5
B. L = 5, K = 2
C. L = 3, K = 4
D. L = 4, K = 3
Question 11
A firm is considering investing in a new project that has a net present value (NPV) of ₦100,000. If the \cost of capital is 10%, what is the internal rate of return (IRR)?
A. 10%
B. 15%
C. 20%
D. 25%
Question 12
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w_L = 10 and w_K = 20, and the firm's current output price is p = 50, calculate the firm's current profit-maximizing input bundle (L, K) and the corresponding output level Q.
A. (L, K) = (100, 400), Q = 200
B. (L, K) = (400, 100), Q = 200
C. (L, K) = (100, 100), Q = 141.42
D. (L, K) = (400, 400), Q = 400
Question 13
A monopolist faces a demand curve with an elasticity of -4. If the monopolist increases its price by 20%, what is the percentage change in quantity demanded?
A. 40%
B. 30%
C. 20%
D. 10%
Question 14
A consumer has the following utility function: U(x, y) = 2x + 3y. The prices of x and y are p_x = 10 and p_y = 20, respectively. If the consumer's income is I = 100, determine the consumer's optimal consumption bundle (x, y).
A. (x, y) = (10, 5)
B. (x, y) = (5, 10)
C. (x, y) = (20, 0)
D. (x, y) = (0, 20)
Question 15
Consider a firm with a production function Q = L^0.5K^0.5. If the firm's current input prices are w_L = 10 and w_K = 20, and the firm's current output price is p = 50, determine the firm's current profit-maximizing input bundle (L, K) and the corresponding output level Q.
A. (L, K) = (100, 400), Q = 200
B. (L, K) = (400, 100), Q = 200
C. (L, K) = (100, 100), Q = 141.42
D. (L, K) = (400, 400), Q = 400

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: