POST UTME PAN-ATLANTIC UNIVERSITY 2025 Economics | Objective

Are you preparing for POST UTME PAN-ATLANTIC UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2025 Economics (Objective) questions designed to simulate the real exam environment.

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Question 1
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 2
A firm's production function is given by Q = 2L^0.5K^0.5. 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%
Correct C. 15%
D. 18%

Correct Answer: C

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Question 3
A country's GDP is ₦100 billion. If the country's population is 20 million and the average GDP per capita is ₦5,000, what is the country's GDP per capita?
A. ₦2,500
B. ₦3,000
C. ₦4,000
Correct D. ₦5,000

Correct Answer: D

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Question 4
A firm's revenue function is given by R = 100Q - 2Q^2. If the firm's output is increased by 20%, what is the percentage change in revenue?
A. 10%
Correct B. 12%
C. 15%
D. 18%

Correct Answer: B

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Question 5
A country's GNP is ₦120 billion. If the country's GDP is ₦100 billion and the net factor income from abroad is ₦20 billion, what is the country's GNP?
A. ₦100 billion
B. ₦110 billion
Correct C. ₦120 billion
D. ₦130 billion

Correct Answer: C

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Question 6
Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) curve intersects the marginal \cost (MC) curve at point E, and the firm's average revenue (AR) curve intersects the average \cost (AC) curve at point F, which of the following statements is true?
Correct A. The firm is maximizing profits at point E.
B. The firm is minimizing \costs at point F.
C. The firm is operating at a loss at point E.
D. The firm is operating at a profit at point F.

Correct Answer: A

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Question 7
A consumer's indifference curve is given by the equation u(x,y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle?
Correct A. (x,y) = (10,20)
B. (x,y) = (20,10)
C. (x,y) = (15,15)
D. (x,y) = (5,5)

Correct Answer: A

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Question 8
A country's balance of payments is given by the equation BOP = \( X - M \) + \( F - I \). If the country's exports (X) are ₦1000, imports (M) are ₦800, foreign investment (F) is ₦500, and domestic investment (I) is ₦300, what is the country's balance of payments?
Correct A. ₦200
B. ₦300
C. ₦400
D. ₦500

Correct Answer: A

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Question 9
A firm's supply curve is given by the equation Q = 2P + 10. If the price of the good is ₦20, what is the quantity supplied?
A. 10
Correct B. 20
C. 30
D. 40

Correct Answer: B

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Question 10
A government's budget is given by the equation B = T + I. If the government's tax revenue (T) is ₦500 and its exp\enditure (I) is ₦300, what is the government's budget surplus?
Correct A. ₦200
B. ₦300
C. ₦400
D. ₦500

Correct Answer: A

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Question 11
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦200 per unit, calculate the \cost-minimizing input combination for a level of output Q = 100 units.
A. L = 100 units, K = 50 units
Correct B. L = 50 units, K = 100 units
C. L = 200 units, K = 100 units
D. L = 100 units, K = 200 units

Correct Answer: B

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Question 12
A monopolist faces a demand curve given by P = 100 - 2Q. The firm's marginal \cost (MC) is given by MC = 20 + 0.5Q. If the firm produces 50 units of output, what is the profit-maximizing price?
Correct A. ₦80
B. ₦90
C. ₦100
D. ₦110

Correct Answer: A

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Question 13
A firm's revenue function is given by R(Q) = 100Q - 0.1Q^2. If the firm produces 100 units of output, what is the total revenue?
Correct A. ₦9,900
B. ₦9,500
C. ₦9,100
D. ₦8,900

Correct Answer: A

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Question 14
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦200 per unit, calculate the \cost-minimizing input combination for a level of output Q = 100 units.
A. L = 100 units, K = 50 units
Correct B. L = 50 units, K = 100 units
C. L = 200 units, K = 100 units
D. L = 100 units, K = 200 units

Correct Answer: B

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Question 15
A monopolist faces a demand curve given by P = 100 - 2Q. The firm's marginal \cost (MC) is given by MC = 20 + 0.5Q. If the firm produces 50 units of output, what is the profit-maximizing price?
Correct A. ₦80
B. ₦90
C. ₦100
D. ₦110

Correct Answer: A

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Question 16
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 it is currently producing 100 units of output, what is the firm's current total \cost?
A. ₦2000
B. ₦2500
Correct C. ₦3000
D. ₦3500

Correct Answer: C

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Question 17
A consumer has the following utility function: U(x, y) = 2x^0.5y^0.5. If the consumer's income is ₦1000 and the prices of x and y are ₦10 and ₦20 respectively, what is the consumer's optimal bundle of x and y?
Correct A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 20, y = 2

Correct Answer: A

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Question 18
Consider a market with the following supply and demand functions: Q^s = 2p - 100 and Q^d = 200 - 2p. What is the equilibrium price and quantity in this market?
A. p = 100, Q = 200
Correct B. p = 150, Q = 250
C. p = 200, Q = 300
D. p = 250, Q = 350

Correct Answer: B

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Question 19
A firm is considering two different production techno\logies: a traditional techno\logy with a production function Q = 2L^0.5K^0.5, and a new techno\logy with a production function Q = 3L^0.7K^0.3. If the firm's current input prices are w_L = 10 and w_K = 20, and it is currently producing 100 units of output, which techno\logy should the firm adopt?
A. Traditional techno\logy
Correct B. New techno\logy
C. Both techno\logies are equally efficient
D. Neither techno\logy is efficient

Correct Answer: B

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Question 20
A consumer has the following utility function: U(x, y) = 2x^0.5y^0.5. If the consumer's income is ₦1000 and the prices of x and y are ₦10 and ₦20 respectively, what is the consumer's optimal bundle of x and y?
Correct A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 20, y = 2

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 price at which the quantity demanded is 50?
A. ₦20
Correct B. ₦30
C. ₦40
D. ₦50

Correct Answer: B

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Question 22
A firm is producing a product with a total revenue of ₦100,000 and a total \cost of ₦80,000. If the price elasticity of demand is 0.5, what is the price at which the firm should produce the product?
A. ₦10
Correct B. ₦20
C. ₦30
D. ₦40

Correct Answer: B

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Question 23
A country is experiencing a trade deficit of ₦100 billion. If the country's GDP is ₦500 billion, what is the trade deficit as a percentage of GDP?
A. 20%
Correct B. 30%
C. 40%
D. 50%

Correct Answer: B

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Question 24
A firm is producing a product with a marginal revenue of ₦100 and a marginal \cost of ₦80. If the price elasticity of demand is 0.5, what is the price at which the firm should produce the product?
A. ₦10
Correct B. ₦20
C. ₦30
D. ₦40

Correct Answer: B

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Question 25
A country is experiencing a balance of payments surplus of ₦100 billion. If the country's GDP is ₦500 billion, what is the balance of payments surplus as a percentage of GDP?
A. 20%
Correct B. 30%
C. 40%
D. 50%

Correct Answer: B

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