POST UTME NOUN 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are $2 and $3, respectively, and the consumer's income is $20, what is the optimal bundle of goods?
A. x = 4, y = 2
B. x = 3, y = 3
C. x = 2, y = 4
D. x = 1, y = 5
Question 2
A firm's \cost function is given by C(x) = 2x^2 + 10x + 5. If the firm produces 20 units, what is the total \cost?
A. ₦250
B. ₦500
C. ₦750
D. ₦1000
Question 3
Consider a country with a production function given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the country's labor and capital are fixed at 100 units each, calculate the opportunity \cost of increa\sing output by 10 units.
A. ₦500
B. ₦1000
C. ₦2000
D. ₦5000
Question 4
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital are fixed at 100 units each, calculate the marginal product of labor.
A. 5
B. 10
C. 15
D. 20
Question 5
Consider a closed economy with a \single good, labor, and capital. If the production function is given by \( Y = 10K^{\frac{1}{2}}L^{\frac{1}{2}} \), where ( Y ) is output, ( K ) is capital, and ( L ) is labor, and the price of the good is \( P = 10 \), calculate the value of the marginal product of labor (MPL) when \( K = 100 \) and \( L = 100 \).
A. \( MPL = \frac{1}{2} \times 10^{\frac{1}{2}} \times 100^{-\frac{1}{2}} \)
B. \( MPL = \frac{1}{2} \times 10^{\frac{1}{2}} \times 100^{\frac{1}{2}} \)
C. \( MPL = \frac{1}{2} \times 10^{\frac{1}{2}} \times 100 \)
D. \( MPL = \frac{1}{2} \times 10 \times 100^{\frac{1}{2}} \)
Question 6
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm's labor and capital inputs are increased by 20% and 15%, respectively, what is the percentage change in output?
A. 10%
B. 12%
C. 15%
D. 18%
Question 7
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's marginal revenue function is MR = 200 - 4Q, calculate the price elasticity of demand at a quantity of 50 units.
A. 0.5
B. 1
C. 2
D. 4
Question 8
A government's budget can be broken down into three main components: revenue, exp\enditure, and net l\ending. Which of the following is NOT a type of government revenue?
A. Taxes (T)
B. Grants (G)
C. Fines (F)
D. Interest on loans (I)
Question 9
A consumer's utility function is given by U(x, y) = 2x^0.5y^0.5. If the price of x is ₦50 per unit and the price of y is ₦100 per unit, what is the consumer's indifference curve?
A. U(x, y) = 10
B. U(x, y) = 20
C. U(x, y) = 30
D. U(x, y) = 40
Question 10
Determine the equilibrium price and quantity of wheat in the Nigerian market, given the following supply and demand equations:\n\nSupply: Qs = 100 + 2P\nDemand: Qd = 150 - 3P\n\nAssume the initial price is ₦100.
A. ₦120, 120 units
B. ₦150, 150 units
C. ₦180, 180 units
D. ₦200, 200 units
Question 11
A country's trade balance is given by TB = X - M, where TB is trade balance, X is exports, and M is imports. If the country's exports and imports are ₦1000 and ₦800 respectively, calculate the trade balance.
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 12
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. What is the profit-maximizing quantity?
A. 50
B. 75
C. 100
D. 125
Question 13
A government imposes a tax of $1 on a good, which increases the price from $5 to $6. If the demand for the good is given by Q = 100 - 2P, what is the new equilibrium quantity?
A. 40
B. 50
C. 60
D. 70
Question 14
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 10%
B. 12%
C. 15%
D. 18%
Question 15
Consider a firm that produces a \single good. The production function is given by \( Q = 10K^{\frac{1}{2}}L^{\frac{1}{2}} \), where ( Q ) is output, ( K ) is capital, and ( L ) is labor. If the price of the good is \( P = 10 \) and the firm has 100 units of capital and 100 units of labor, what is the value of the marginal product of capital (MPC)?
A. \( MPC = \frac{1}{2} \times 10^{\frac{1}{2}} \times 100^{\frac{1}{2}} \)
B. \( MPC = \frac{1}{2} \times 10^{\frac{1}{2}} \times 100^{-\frac{1}{2}} \)
C. \( MPC = \frac{1}{2} \times 10 \times 100^{\frac{1}{2}} \)
D. \( MPC = \frac{1}{2} \times 10 \times 100 \)

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