POST UTME UI 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The Agricultural sector is a major contributor to Nigeria's GDP. Which of the following is a major challenge facing the agricultural sector in Nigeria?
A. Lack of access to credit
B. Lack of access to markets
C. Lack of access to techno\logy
D. All of the above
Question 2
The government of Nigeria has introduced a new policy aimed at reducing inflation. The policy includes a reduction in the money supply and an increase in interest rates. U\sing the concept of the Phillips curve, explain why the government's policy may be effective in reducing inflation.
A. The government's policy will lead to a decrease in the inflation rate, as the Phillips curve shifts to the left.
B. The government's policy will lead to an increase in the inflation rate, as the Phillips curve shifts to the right.
C. The government's policy will have no impact on the inflation rate.
D. The government's policy will lead to a decrease in the unemployment rate, as the Phillips curve shifts to the left.
Question 3
The concept of scarcity is closely related to the concept of opportunity \cost. Which of the following is a correct statement about scarcity?
A. Scarcity is the \cost of producing a good or service
B. Scarcity is the benefit of producing a good or service
C. Scarcity is the \cost of not producing a good or service
D. Scarcity is the benefit of not producing a good or service
Question 4
The government of Nigeria has introduced a new agricultural policy aimed at increa\sing food production and reducing imports. The policy includes subsidies for fertilizers and pesticides, as well as support for irrigation projects. U\sing the concept of opportunity \cost, explain why the government's policy may be justified.
A. The government's policy will lead to a decrease in the opportunity \cost of food production, making it more attractive for farmers to produce food.
B. The government's policy will increase the opportunity \cost of food production, making it less attractive for farmers to produce food.
C. The government's policy will have no impact on the opportunity \cost of food production.
D. The government's policy will lead to a decrease in the opportunity \cost of imports, making it more attractive for the government to import food.
Question 5
A country's balance of payments account shows a trade deficit of $100 million. If the country's exchange rate is fixed at $1 = ₦200, what is the likely effect on the domestic price level?
A. The domestic price level will increase.
B. The domestic price level will decrease.
C. The domestic price level will remain unchanged.
D. The effect on the domestic price level is uncertain.
Question 6
A country's GNP is ₦120 billion. If the country's GDP is ₦100 billion, what is the net factor income from abroad?
A. ₦10 billion
B. ₦20 billion
C. ₦30 billion
D. ₦40 billion
Question 7
The concept of opportunity \cost is closely related to the concept of scarcity. Which of the following is a correct statement about opportunity \cost?
A. Opportunity \cost is the \cost of producing a good or service
B. Opportunity \cost is the benefit of producing a good or service
C. Opportunity \cost is the \cost of not producing a good or service
D. Opportunity \cost is the benefit of not producing a good or service
Question 8
A firm's production function is given by Q = 2L^2 + 3K^2. If the firm's current inputs are L = 5 and K = 3, what is the firm's current output?
A. 50
B. 75
C. 100
D. 125
Question 9
A firm's production function is given by Q = 2L^2 + 3K^2. If the firm's current inputs are L = 5 and K = 3, what is the firm's current output?
A. 50
B. 75
C. 100
D. 125
Question 10
The demand for a commodity is said to be elastic if a small change in price leads to a large change in quantity demanded. Which of the following is a characteristic of an elastic demand?
A. A small change in price leads to a small change in quantity demanded
B. A large change in price leads to a small change in quantity demanded
C. A small change in price leads to a large change in quantity demanded
D. A large change in price leads to a large change in quantity demanded
Question 11
A country's balance of payments account shows a trade deficit of $100 million. If the country's exchange rate is fixed at 1 USD = 100 Naira, what will be the effect on the value of the Naira?
A. The value of the Naira will appreciate by 10%
B. The value of the Naira will depreciate by 10%
C. The value of the Naira will remain unchanged
D. The value of the Naira will appreciate by 20%
Question 12
In a perfectly competitive market, the demand curve for a firm's product is perfectly elastic. If the firm increases its price by 10%, what will be the effect on the quantity demanded of its product?
A. The quantity demanded will increase by 10%
B. The quantity demanded will decrease by 10%
C. The quantity demanded will remain unchanged
D. The quantity demanded will increase by 20%
Question 13
The concept of opportunity \cost is closely related to the concept of scarcity. Which of the following is a correct statement about opportunity \cost?
A. Opportunity \cost is the \cost of producing a good or service
B. Opportunity \cost is the benefit of producing a good or service
C. Opportunity \cost is the \cost of not producing a good or service
D. Opportunity \cost is the benefit of not producing a good or service
Question 14
A farmer in Nigeria has two plots of land, one with a high-yielding crop and the other with a low-yielding crop. The farmer can only cultivate one plot per season. U\sing the concept of elasticity of demand, explain why the farmer may choose to cultivate the high-yielding crop.
A. The high-yielding crop has a higher price elasticity of demand, making it more profitable for the farmer to cultivate.
B. The high-yielding crop has a lower price elasticity of demand, making it less profitable for the farmer to cultivate.
C. The high-yielding crop has a higher income elasticity of demand, making it more profitable for the farmer to cultivate.
D. The high-yielding crop has a lower income elasticity of demand, making it less profitable for the farmer to cultivate.
Question 15
The Central Bank of Nigeria (CBN) uses monetary policy tools to control inflation. Which of the following tools is NOT a monetary policy tool?
A. Open Market Operations (OMO)
B. Reserve Requirements
C. Fiscal Policy
D. Monetary Policy Committee (MPC)

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