POST UTME PAN-ATLANTIC UNIVERSITY 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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?
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 20, y = 2
Question 2
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?
A. (x,y) = (10,20)
B. (x,y) = (20,10)
C. (x,y) = (15,15)
D. (x,y) = (5,5)
Question 3
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
B. ₦20
C. ₦30
D. ₦40
Question 4
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
B. ₦20
C. ₦30
D. ₦40
Question 5
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?
A. ₦80
B. ₦90
C. ₦100
D. ₦110
Question 6
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
B. ₦30
C. ₦40
D. ₦50
Question 7
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
B. L = 50 units, K = 100 units
C. L = 200 units, K = 100 units
D. L = 100 units, K = 200 units
Question 8
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?
A. ₦200
B. ₦300
C. ₦400
D. ₦500
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
B. 20
C. 30
D. 40
Question 10
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
B. New techno\logy
C. Both techno\logies are equally efficient
D. Neither techno\logy is efficient
Question 11
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%
B. 30%
C. 40%
D. 50%
Question 12
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
D. ₦5,000
Question 13
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%
B. 30%
C. 40%
D. 50%
Question 14
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?
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 20, y = 2
Question 15
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
C. ₦120 billion
D. ₦130 billion

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