POST UTME UI 2024 Economics | Objective

Are you preparing for POST UTME UI exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2024 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the product is given by the equation Qs = 2P - 100, where Qs is the quantity supplied. Find the equilibrium price and quantity.
A. ₦50, 200 units
B. ₦75, 150 units
Correct C. ₦100, 100 units
D. ₦125, 50 units

Correct Answer: C

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Question 2
A country's GDP is ₦10 trillion, its imports are ₦2 trillion, and its exports are ₦3 trillion. What is its GNP?
A. ₦11 trillion
Correct B. ₦12 trillion
C. ₦13 trillion
D. ₦14 trillion

Correct Answer: B

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Question 3
The government of Nigeria has implemented a policy to increase agricultural production. The policy includes providing subsidies to farmers and investing in irrigation systems. What is the likely effect of this policy on the agricultural sector?
Correct A. Increase in agricultural production
B. Decrease in agricultural production
C. No change in agricultural production
D. Increase in agricultural prices

Correct Answer: A

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Question 4
A firm's production function 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 its labor from 100 units to 120 units and its capital from 100 units to 120 units, what is the percentage change in output?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 5
A consumer's demand function for a product is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price of the product increases by 10%, what is the percentage change in quantity demanded?
A. 5%
Correct B. 10%
C. 15%
D. 20%

Correct Answer: B

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Question 6
Consider a firm operating in a perfectly competitive market. If the firm's marginal revenue (MR) curve intersects its marginal \cost (MC) curve at point E, and the firm is currently producing at point D, which of the following statements is true?
A. The firm is maximizing its profits.
B. The firm is minimizing its \costs.
Correct C. The firm is producing at its optimal level.
D. The firm is experiencing a loss.

Correct Answer: C

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Question 7
A country's GDP is calculated as the sum of all final goods and services produced within its borders. However, if a foreign company produces goods within the country, but the company is owned by a foreign entity, how would this affect the country's GDP?
A. The country's GDP would increase.
B. The country's GDP would decrease.
Correct C. The country's GDP would remain unchanged.
D. The country's GDP would be affected only if the foreign company is producing goods for export.

Correct Answer: C

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Question 8
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm produces 5 units of output, what is the total \cost of production?
A. ₦45
Correct B. ₦55
C. ₦65
D. ₦75

Correct Answer: B

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Question 9
Consider a simple linear programming problem with two variables, x and y. The objective function is to maximize 2x + 3y, subject to the constraints x + y ≤ 4 and x ≥ 0. What is the optimal solution?
A. (0, 4)
Correct B. (2, 2)
C. (4, 0)
D. (0, 0)

Correct Answer: B

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Question 10
A country's inflation rate is 5% per annum. If the country's GDP is ₦100 billion, what is the value of the country's GDP after one year, assuming no change in the price level?
A. ₦105 billion
Correct B. ₦110 billion
C. ₦115 billion
D. ₦120 billion

Correct Answer: B

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Question 11
In a perfectly competitive market, the demand curve for a firm's product is perfectly elastic. If the market price of the product is $10, and the firm's marginal revenue (MR) is $8, what is the firm's marginal \cost (MC)?
Correct A. $6
B. $8
C. $10
D. $12

Correct Answer: A

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Question 12
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost (MC) is $10. What is the monopolist's optimal price?
A. $40
B. $50
Correct C. $60
D. $70

Correct Answer: C

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Question 13
A country's GDP is $100 billion, and its GNP is $120 billion. What is the country's net factor income from abroad?
A. $10 billion
Correct B. $20 billion
C. $30 billion
D. $40 billion

Correct Answer: B

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Question 14
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor (L) increases by 10% and its capital (K) remains cons\tant, what is the percentage change in output (Q)?
A. 5%
Correct B. 10%
C. 15%
D. 20%

Correct Answer: B

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Question 15
A country's balance of payments (BOP) is given by the following equation: BOP = X - M + \( F - I \). If the country's exports (X) are $100 billion, its imports (M) are $80 billion, its foreign investment (F) is $20 billion, and its domestic investment (I) is $30 billion, what is the country's BOP?
A. $10 billion
B. $20 billion
Correct C. $30 billion
D. $40 billion

Correct Answer: C

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Question 16
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm wants to increase output by 20% while keeping labor cons\tant at 100 units, 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
A country's GDP is given by the equation Y = C + I + G, where Y is GDP, C is consumption, I is investment, and G is government sp\ending. If the country's GDP is $100 billion, consumption is $60 billion, investment is $20 billion, and government sp\ending is $10 billion, what is the marginal propensity to consume?
A. 0.4
Correct B. 0.6
C. 0.8
D. 1.0

Correct Answer: B

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Question 18
A firm's \cost function is given by C = 2Q + 100, where C is \cost and Q is output. If the firm produces 100 units of output, what is the total \cost?
A. 200
Correct B. 300
C. 400
D. 500

Correct Answer: B

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Question 19
A country's national income is given by the equation Y = C + I + G, where Y is national income, C is consumption, I is investment, and G is government sp\ending. If the country's national income is $100 billion, consumption is $60 billion, investment is $20 billion, and government sp\ending is $10 billion, what is the multiplier effect?
A. 0.5
Correct B. 1.0
C. 1.5
D. 2.0

Correct Answer: B

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Question 20
A firm's revenue function is given by R = 2Q - 10, where R is revenue and Q is output. If the firm produces 50 units of output, what is the total revenue?
A. 80
Correct B. 90
C. 100
D. 110

Correct Answer: B

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Question 21
The government of a country imposes a tax on imported goods to raise revenue. If the tax is 10% of the value of the imported goods, and the value of the imported goods is ₦100,000, what is the amount of tax paid?
Correct A. ₦10,000
B. ₦5,000
C. ₦20,000
D. ₦15,000

Correct Answer: A

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Question 22
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the price is ₦50, what is the quantity demanded?
A. 50
Correct B. 75
C. 100
D. 125

Correct Answer: B

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Question 23
A country's GDP is ₦1,000,000,000,000. If the country's population is 200,000,000, what is the per capita income?
Correct A. ₦5,000
B. ₦10,000
C. ₦20,000
D. ₦50,000

Correct Answer: A

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Question 24
A firm's production function is given by Q = 2L + 3K, where Q is the quantity produced, L is the labor and K is the capital. If the labor is 10 units and the capital is 5 units, what is the quantity produced?
A. 20
B. 25
Correct C. 30
D. 35

Correct Answer: C

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Question 25
A country's GNP is ₦1,500,000,000,000. If the country's GDP is ₦1,000,000,000,000, what is the net factor income from abroad?
Correct A. ₦500,000,000,000
B. ₦750,000,000,000
C. ₦1,000,000,000,000
D. ₦1,250,000,000,000

Correct Answer: A

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