POST UTME SUMMIT UNIVERSITY 2022 Economics | Objective

Are you preparing for POST UTME SUMMIT UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2022 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^0.5H^0.5. If the firm's current labor and capital inputs are L = 16 and H = 9, what is the marginal product of labor?
Correct A. 0.5
B. 1
C. 2
D. 3

Correct Answer: A

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Question 2
A perfectly competitive market has a demand function given by P = 100 - 2Q and a supply function given by P = 20 + 3Q. What is the equilibrium price and quantity?
Correct A. 80, 20
B. 60, 30
C. 40, 40
D. 20, 60

Correct Answer: A

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Question 3
A monopolist faces a demand curve given by P = 100 - 2Q and a marginal revenue function given by MR = 50 - 2Q. What is the monopolist's profit-maximizing quantity?
A. 20
B. 30
Correct C. 40
D. 50

Correct Answer: C

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Question 4
A country's GDP is given by the equation Y = C + I + G + \( X - M \). If the country's current consumption, investment, government sp\ending, exports, and imports are C = 100, I = 50, G = 20, X = 150, and M = 100, what is the country's GDP?
A. 220
B. 230
Correct C. 240
D. 250

Correct Answer: C

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Question 5
A firm's production function is given by Q = 2L^0.5H^0.5. If the firm's current labor and capital inputs are L = 25 and H = 16, what is the firm's current output?
A. 20
Correct B. 25
C. 30
D. 35

Correct Answer: B

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Question 6
The concept of scarcity in economics implies that the production of one good is limited by the availability of resources, which can be allocated to other goods. This is an example of a _______ opportunity \cost.
Correct A. Opportunity \cost of production
B. Opportunity \cost of consumption
C. Opportunity \cost of distribution
D. Opportunity \cost of exchange

Correct Answer: A

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Question 7
A farmer in Nigeria has 100 hectares of land to cultivate maize and sorghum. If the marginal product of maize is 20 tons per hectare and the marginal product of sorghum is 15 tons per hectare, and the farmer can sell maize at ₦200 per ton and sorghum at ₦150 per ton, what is the optimal allocation of land between maize and sorghum?
A. 50 hectares for maize and 50 hectares for sorghum
Correct B. 60 hectares for maize and 40 hectares for sorghum
C. 70 hectares for maize and 30 hectares for sorghum
D. 80 hectares for maize and 20 hectares for sorghum

Correct Answer: B

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Question 8
The money supply in Nigeria is determined by the central bank's monetary policy, which includes the reserve requirement, open market operations, and discount rate. If the central bank increases the reserve requirement from 10% to 15%, what will be the effect on the money supply?
A. Increase in money supply
Correct B. Decrease in money supply
C. No change in money supply
D. Uncertain effect on money supply

Correct Answer: B

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Question 9
The production function for a firm in Nigeria 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 labor from 100 units to 120 units and capital from 100 units to 120 units, what will be the effect on output?
Correct A. Increase in output
B. Decrease in output
C. No change in output
D. Uncertain effect on output

Correct Answer: A

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Question 10
The National Bureau of Statistics (NBS) releases the Gross Domestic Product (GDP) for Nigeria, which is calculated as the sum of consumption, investment, government sp\ending, and net exports. If the GDP for Nigeria is ₦20 trillion and the government sp\ending is ₦4 trillion, what is the value of net exports?
A. ₦4 trillion
B. ₦6 trillion
C. ₦8 trillion
Correct D. ₦10 trillion

Correct Answer: D

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Question 11
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing price and quantity.
A. P = 50, Q = 25
Correct B. P = 75, Q = 12.5
C. P = 25, Q = 50
D. P = 12.5, Q = 75

Correct Answer: B

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Question 12
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm hires 16 workers and 9 machines, find the total product.
A. 64
B. 128
Correct C. 256
D. 512

Correct Answer: C

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Question 13
A government imposes a tax of ₦10 per unit on a firm that produces a good with a demand curve given by Q = 100 - 2P. If the firm's \cost function is C(Q) = 2Q^2 + 10Q, find the new equilibrium price and quantity.
Correct A. P = 45, Q = 22.5
B. P = 55, Q = 17.5
C. P = 35, Q = 27.5
D. P = 25, Q = 37.5

Correct Answer: A

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Question 14
A firm's revenue function is given by R(P) = 2P^2 - 10P + 20. Find the price that maximizes revenue.
A. ₦5
Correct B. ₦10
C. ₦15
D. ₦20

Correct Answer: B

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Question 15
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm hires 25 workers and 16 machines, find the marginal product of labor.
A. 0.5
Correct B. 1
C. 2
D. 4

Correct Answer: B

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Question 16
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% while keeping labor cons\tant, what percentage increase in capital is required?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 17
The government of Nigeria wants to reduce the poverty rate by 10% within the next 5 years. If the current poverty rate is 40%, what is the required annual reduction rate?
A. 2%
Correct B. 4%
C. 6%
D. 8%

Correct Answer: B

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Question 18
A farmer in Nigeria produces wheat u\sing the following production function: Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the price of wheat is ₦100 per unit and the price of labor is ₦50 per unit, what is the optimal level of labor and capital?
Correct A. L = 100, K = 100
B. L = 200, K = 50
C. L = 50, K = 200
D. L = 100, K = 50

Correct Answer: A

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Question 19
The government of Nigeria wants to increase its revenue by 20% within the next 2 years. If the current revenue is ₦100 billion, what is the required annual increase rate?
A. 10%
B. 15%
Correct C. 20%
D. 25%

Correct Answer: C

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Question 20
A firm in Nigeria produces a product u\sing the following production function: Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the price of the product is ₦100 per unit and the price of labor is ₦50 per unit, what is the optimal level of labor and capital?
Correct A. L = 100, K = 100
B. L = 200, K = 50
C. L = 50, K = 200
D. L = 100, K = 50

Correct Answer: A

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Question 21
The government of Nigeria has introduced a new tax policy aimed at increa\sing revenue from the agricultural sector. The policy involves a 10% tax on all agricultural produce sold in the market. If the total revenue from the sale of agricultural produce is ₦1.2 billion, what is the total tax collected by the government?
A. ₦120 million
Correct B. ₦150 million
C. ₦180 million
D. ₦200 million

Correct Answer: B

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Question 22
A firm produces two goods, X and Y, u\sing two inputs, labor and capital. The production function for good X is given by Q_X = 2L^0.5K^0.5, where Q_X is the quantity of good X produced, L is the amount of labor used, and K is the amount of capital used. The production function for good Y is given by Q_Y = 3L^0.7K^0.3. If the firm uses 100 units of labor and 50 units of capital, what is the total output of the firm?
A. 150 units
B. 200 units
Correct C. 250 units
D. 300 units

Correct Answer: C

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Question 23
The demand for a product is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price of the product. The supply of the product is given by the equation Q = 2P - 50. If the price of the product is ₦50, what is the equilibrium quantity?
A. 50 units
Correct B. 100 units
C. 150 units
D. 200 units

Correct Answer: B

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Question 24
A firm has a production function given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the amount of labor used, and K is the amount of capital used. If the firm uses 100 units of labor and 50 units of capital, what is the marginal product of labor?
A. 0.5 units
Correct B. 1 unit
C. 1.5 units
D. 2 units

Correct Answer: B

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Question 25
The government of Nigeria has introduced a new policy aimed at increa\sing agricultural production. The policy involves the provision of subsidies to farmers who use certain inputs. If the subsidy is ₦100 per unit of input, and the farmer uses 100 units of input, what is the total subsidy received by the farmer?
A. ₦10,000
B. ₦20,000
Correct C. ₦30,000
D. ₦40,000

Correct Answer: C

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