POST UTME OSUSTECH 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolist's inverse demand function is given by P = 100 - 2Q. If the firm's marginal \cost is 20, what is the profit-maximizing quantity?
A. 20
B. 30
C. 40
D. 50
Question 2
The government of Nigeria has implemented a policy to increase agricultural production. Which of the following is a likely consequence of this policy?
A. An increase in the price of agricultural products.
B. An increase in the production of agricultural products.
C. A decrease in the price of agricultural products.
D. A decrease in the production of agricultural products.
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are 16 and 9 units respectively, what is the marginal product of labor?
A. 0.5
B. 1
C. 2
D. 3
Question 4
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm wants to increase its output by 20%, how much should it increase its labor and capital?
A. L increases by 10%, K increases by 10%
B. L increases by 20%, K increases by 20%
C. L increases by 10%, K increases by 20%
D. L increases by 20%, K increases by 10%
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm hires 10 units of labor and 20 units of capital, what is the marginal product of labor?
A. 1
B. 2
C. 3
D. 4
Question 6
A consumer has a budget constraint of $100 and a preference for two goods, A and B. The prices of A and B are $20 and $30, respectively. If the consumer allocates 60% of their budget to good A, how much of good B can they afford?
A. $60
B. $50
C. $40
D. $30
Question 7
A monopolist's inverse demand function is given by P = 100 - 2Q. If the firm's marginal \cost is 20, what is the profit-maximizing quantity?
A. 20
B. 30
C. 40
D. 50
Question 8
A country's import demand function is given by M = 100 - 2P + 3Y. If the price of imports is 50 and the country's income is 200, what is the quantity of imports demanded?
A. 150
B. 200
C. 250
D. 300
Question 9
A consumer's indifference curve is given by the equation ( U(x,y) = 2x + 3y ). If the consumer's initial \endowment is \( x_0, y_0 \ \) = (10, 20) ) and the price of good x is \( P_x = 2 \) and the price of good y is \( P_y = 3 \), what is the consumer's optimal bundle?
A. x = 5, y = 10
B. x = 10, y = 5
C. x = 15, y = 0
D. x = 0, y = 15
Question 10
A country's GDP is calculated as the sum of the value of all final goods and services produced within its borders. If the country's GDP is ₦10,000,000,000 and the government sp\ends ₦2,000,000,000 on infrastructure, what is the country's national income?
A. ₦8,000,000,000
B. ₦10,000,000,000
C. ₦12,000,000,000
D. ₦14,000,000,000
Question 11
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are 16 and 9 units respectively, what is the average product of labor?
A. 2
B. 4
C. 8
D. 16
Question 12
In a perfectly competitive market, the supply curve is upward-sloping because firms are willing to produce more only if they can sell their output at a higher price. However, this is not the case in a market with a \single seller, where the supply curve is horizontal. What is the name of this market structure?
A. Perfect Competition
B. Monopoly
C. Oligopoly
D. Monopolistic Competition
Question 13
A consumer's indifference curve is represented by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦2 and ₦3 respectively, find the consumer's optimal bundle of x and y.
A. (200, 150)
B. (250, 100)
C. (150, 200)
D. (100, 250)
Question 14
A monopolistically competitive firm faces a demand curve with an elasticity of -2. If the firm increases its price by 10%, what is the percentage change in quantity demanded?
A. -20%
B. -15%
C. -10%
D. -5%
Question 15
The concept of scarcity in economics implies that the production of one good is limited by the availability of resources that could be used to produce another good. Which of the following is a correct statement regarding the opportunity \cost of producing a good?
A. The opportunity \cost is the value of the next best alternative that is given up when a choice is made.
B. The opportunity \cost is the value of the good that is produced.
C. The opportunity \cost is the value of the resource that is used to produce the good.
D. The opportunity \cost is the value of the good that is not produced.

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