POST UTME SUMMIT UNIVERSITY 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 100 units, and the price of labor is ₦50 per unit, and the price of capital is ₦100 per unit, what is the minimum \cost of production?
A. ₦10,000
B. ₦12,000
C. ₦15,000
D. ₦18,000
Question 2
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 firm's marginal \cost of producing 16 units of output.
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 3
A country's GDP is ₦100 billion, its GNP is ₦120 billion, and its net factor income from abroad is ₦10 billion. What is the country's national income?
A. ₦110 billion
B. ₦120 billion
C. ₦130 billion
D. ₦140 billion
Question 4
A firm's \cost function is given by \( C = 2q^2 + 3q + 10 \). What is the marginal \cost when \( q = 4 \)?
A. 17
B. 18
C. 19
D. 20
Question 5
A firm's demand curve is given by Q = 100 - 2P. If the firm's marginal revenue (MR) is 80, find the price at which the firm will produce 50 units.
A. 20
B. 30
C. 40
D. 50
Question 6
A firm's \cost function is given by C(x) = 2x^2 + 5x + 10. If the firm's revenue function is R(x) = 20x - 0.5x^2, what is the profit function?
A. P(x) = 15x^2 + 5x - 10
B. P(x) = 10x^2 - 5x + 20
C. P(x) = 5x^2 + 10x - 15
D. P(x) = 20x^2 - 10x + 5
Question 7
A monopolistically competitive firm faces a downward-sloping demand curve. What is the likely effect of an increase in the firm's fixed \costs?
A. Increase in price
B. Decrease in quantity supplied
C. Increase in quantity supplied
D. No change in price
Question 8
The demand for a commodity 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 -2, what is the percentage change in quantity demanded when the price increases by 10%?
A. 20%
B. 30%
C. 40%
D. 50%
Question 9
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the firm's current input levels are L = 9 and K = 16, what is the firm's current output level?
A. Q = 24
B. Q = 36
C. Q = 48
D. Q = 60
Question 10
A country's GDP is ₦200 billion, its GNP is ₦220 billion, and its net factor income from abroad is ₦20 billion. What is the country's national income?
A. ₦210 billion
B. ₦220 billion
C. ₦230 billion
D. ₦240 billion
Question 11
A firm's production function exhibits decrea\sing returns to scale. If the firm's current output is 100 units and it increases its inputs by 20%, what will be the new output?
A. 80 units
B. 100 units
C. 120 units
D. 140 units
Question 12
A consumer's budget constraint is given by the equation 2x + 3y = 12. If the consumer's current bundle is (x, y) = (3, 2), what is the consumer's optimal bundle?
A. x = 4, y = 0
B. x = 3, y = 2
C. x = 2, y = 4
D. x = 0, y = 6
Question 13
A consumer's utility function is given by U = 2x^0.5y^0.5. If the price of good x is ₦50 per unit and the price of good y is ₦75 per unit, calculate the consumer's indifference curve.
A. U = 2x + 2y
B. U = x^2 + y^2
C. U = 2x^0.5y^0.5
D. U = x + y
Question 14
A country's balance of payments is given by the equation \( BOP = X - M \), where X is the value of exports and M is the value of imports. If the country's exports are ₦1000 and its imports are ₦800, what is the country's balance of payments?
A. ₦200
B. ₦300
C. ₦400
D. ₦500
Question 15
A consumer's budget constraint is given by 50x + 75y = 150. If the consumer's utility function is U = 2x^0.5y^0.5, calculate the consumer's optimal consumption bundle.
A. x = 2, y = 2
B. x = 3, y = 1
C. x = 1, y = 3
D. x = 2, y = 1

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