POST UTME NOUN 2023 Economics | Objective

Are you preparing for POST UTME NOUN exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2023 Economics (Objective) questions designed to simulate the real exam environment.

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Question 1
A firm's revenue function is given by R(x) = 2x^2 + 12x + 5, where x is the number of units produced. If the firm's marginal revenue function is MR(x) = 4x + 12, find the value of x that maximizes revenue.
A. 2
Correct B. 3
C. 4
D. 5

Correct Answer: B

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Question 2
A country's balance of payments account is given by the following equation: BOP = \( X - M \) + \( F - I \), where X is exports, M is imports, F is foreign investment, and I is domestic investment. If the country's exports are $100 billion, imports are $80 billion, foreign investment is $20 billion, and domestic investment is $30 billion, what is the balance of payments?
A. ₦10 billion
Correct B. ₦20 billion
C. ₦30 billion
D. ₦40 billion

Correct Answer: B

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Question 3
A consumer's utility function is given by U(x, y) = 2x + 3y, where x is the number of units of good X consumed and y is the number of units of good Y consumed. If the consumer's budget constraint is 2x + 3y = 12, find the optimal consumption bundle.
A. (2, 2)
Correct B. (3, 1)
C. (4, 0)
D. (0, 4)

Correct Answer: B

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Question 4
A firm is considering two different production techno\logies: a traditional techno\logy that produces 100 units of output per hour and a modern techno\logy that produces 200 units of output per hour. If the firm's fixed \costs are ₦10,000 and its variable \costs are ₦5 per unit, which techno\logy should the firm choose?
A. Traditional techno\logy
Correct B. Modern techno\logy
C. Both techno\logies
D. Neither techno\logy

Correct Answer: B

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Question 5
A country's GDP is given by the equation: GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's consumption is ₦500 billion, investment is ₦200 billion, government sp\ending is ₦300 billion, exports are ₦400 billion, and imports are ₦300 billion, what is the country's GDP?
A. ₦1.5 trillion
Correct B. ₦1.6 trillion
C. ₦1.7 trillion
D. ₦1.8 trillion

Correct Answer: B

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Question 6
Determine the value of x in the equation \( \log_{10} \( x^2 \ \) = 4 ).
A. 10
B. 100
C. 1000
Correct D. 10000

Correct Answer: D

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Question 7
A firm's demand function is given by \( Q = 100 - 2P \). If the price elasticity of demand is 0.5, find the price at which the firm will sell 50 units.
A. ₦20
Correct B. ₦30
C. ₦40
D. ₦50

Correct Answer: B

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Question 8
A country's GDP is ₦100 billion. If the government decides to increase the price of a commodity by 20%, what will be the effect on the GDP?
A. Increase by 20%
Correct B. Decrease by 20%
C. No effect
D. Increase by 10%

Correct Answer: B

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Question 9
A firm's production function is given by \( Q = 2L + 3K \). If the firm wants to produce 100 units, and the wage rate is ₦10 per hour, find the optimal level of capital.
A. ₦30
B. ₦40
Correct C. ₦50
D. ₦60

Correct Answer: C

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Question 10
A country's GNP is ₦120 billion. If the government decides to increase the price of a commodity by 15%, what will be the effect on the GNP?
Correct A. Increase by 15%
B. Decrease by 15%
C. No effect
D. Increase by 10%

Correct Answer: A

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Question 11
The production function for a firm is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor and K is the capital. If the firm increases its labor from 4 units to 9 units and capital from 9 units to 16 units, what is the percentage increase in output?
A. 25%
Correct B. 50%
C. 75%
D. 100%

Correct Answer: B

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Question 12
A country's GDP is ₦100 billion, its imports are ₦20 billion, and its exports are ₦25 billion. What is its balance of trade?
Correct A. ₦5 billion
B. ₦10 billion
C. ₦15 billion
D. ₦20 billion

Correct Answer: A

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Question 13
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm increases its labor from 4 units to 9 units and capital from 9 units to 16 units, what is the new output?
A. 12
B. 15
Correct C. 18
D. 20

Correct Answer: C

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Question 14
A country's GNP is ₦120 billion, its GDP is ₦100 billion, and its net factor income from abroad is ₦10 billion. What is its GNP?
A. ₦130 billion
B. ₦140 billion
Correct C. ₦150 billion
D. ₦160 billion

Correct Answer: C

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Question 15
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm increases its labor from 4 units to 9 units and capital from 9 units to 16 units, what is the percentage increase in output?
A. 25%
Correct B. 50%
C. 75%
D. 100%

Correct Answer: B

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Question 16
A firm faces a demand curve given by Q = 100 - 2P. If the firm's marginal \cost is MC = 10 + 2Q, what is the profit-maximizing price?
A. ₦50
Correct B. ₦60
C. ₦70
D. ₦80

Correct Answer: B

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Question 17
A consumer's utility function is given by U = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12, what is the optimal bundle of x and y?
Correct A. x = 2, y = 4
B. x = 3, y = 3
C. x = 4, y = 2
D. x = 5, y = 1

Correct Answer: A

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Question 18
A monopolist faces a demand curve given by Q = 100 - 2P. If the firm's marginal \cost is MC = 10 + 2Q, what is the profit-maximizing price?
A. ₦50
Correct B. ₦60
C. ₦70
D. ₦80

Correct Answer: B

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Question 19
A firm faces a demand curve given by Q = 100 - 2P. If the firm's marginal \cost is MC = 10 + 2Q, what is the profit-maximizing quantity?
A. 50
Correct B. 60
C. 70
D. 80

Correct Answer: B

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Question 20
A consumer's utility function is given by U = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12, what is the optimal bundle of x and y?
Correct A. x = 2, y = 4
B. x = 3, y = 3
C. x = 4, y = 2
D. x = 5, y = 1

Correct Answer: A

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Question 21
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%?
Correct A. 5%
B. 10%
C. 15%
D. 20%

Correct Answer: A

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Question 22
A firm produces two goods, A and B. The production function for good A is Q_A = 2L + 3K, and the production function for good B is Q_B = 4L + 2K, where L is labor and K is capital. If the firm has 10 units of labor and 5 units of capital, what is the total output of the firm?
A. 30
B. 40
Correct C. 50
D. 60

Correct Answer: C

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Question 23
A consumer has a budget of ₦1000 and faces the following prices for two goods: good A \costs ₦200 and good B \costs ₦300. If the consumer's indifference curves are given by the equation U = 2x + 3y, where x is the quantity of good A and y is the quantity of good B, what is the optimal bundle of goods for the consumer?
Correct A. good A: 2 units, good B: 1 unit
B. good A: 3 units, good B: 2 units
C. good A: 4 units, good B: 3 units
D. good A: 5 units, good B: 4 units

Correct Answer: A

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Question 24
A firm faces a demand curve given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal \cost is given by the equation MC = 5 + 2Q, what is the profit-maximizing price?
A. ₦50
B. ₦60
Correct C. ₦70
D. ₦80

Correct Answer: C

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Question 25
A consumer has a utility function given by the equation U = 2x + 3y, where x is the quantity of good A and y is the quantity of good B. If the consumer's budget is ₦1000 and the prices of good A and good B are ₦200 and ₦300 respectively, what is the optimal bundle of goods for the consumer?
Correct A. good A: 2 units, good B: 1 unit
B. good A: 3 units, good B: 2 units
C. good A: 4 units, good B: 3 units
D. good A: 5 units, good B: 4 units

Correct Answer: A

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