POST UTME UNIBEN 2024 Economics | Objective

Are you preparing for POST UTME UNIBEN 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 elasticity of demand for a commodity is measured by the percentage change in the quantity demanded in response to a 1% change in the price. If the demand for a commodity is elastic, what can be inferred about the price elasticity of supply?
A. The price elasticity of supply is inelastic.
Correct B. The price elasticity of supply is elastic.
C. The price elasticity of supply is unitary.
D. The price elasticity of supply is not affected by the price elasticity of demand.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
Agricultural development in Nigeria has been hindered by the lack of access to credit facilities by farmers. What is the most likely consequence of this lack of access to credit?
A. Increased production \costs for farmers.
Correct B. Reduced agricultural productivity.
C. Increased food prices for consumers.
D. Decreased agricultural investment.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
The Nigerian government has implemented a policy to increase the production of rice in the country. What is the likely effect of this policy on the price of rice?
A. The price of rice will increase.
Correct B. The price of rice will decrease.
C. The price of rice will remain the same.
D. The price of rice will fluctuate.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
The Central Bank of Nigeria has increased the reserve requirement for commercial banks. What is the likely effect of this policy on the money supply?
A. The money supply will increase.
Correct B. The money supply will decrease.
C. The money supply will remain the same.
D. The money supply will fluctuate.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
The Nigerian government has implemented a policy to increase the production of textiles in the country. What is the likely effect of this policy on the unemployment rate?
A. The unemployment rate will increase.
Correct B. The unemployment rate will decrease.
C. The unemployment rate will remain the same.
D. The unemployment rate will fluctuate.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
The central bank of a country uses a monetary policy tool to increase the money supply. Which of the following is a likely effect of this action?
A. A decrease in the interest rate
B. An increase in the inflation rate
C. A decrease in the exchange rate
Correct D. An increase in the money supply

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A firm is facing a perfectly elastic demand curve. If the firm increases the price of its product by 10%, what will happen to its revenue?
A. The revenue will increase by 10%
Correct B. The revenue will decrease by 10%
C. The revenue will remain the same
D. The revenue will increase by 20%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A government is considering implementing a new tax on a particular good. Which of the following is a likely effect of this action?
A. An increase in the supply of the good
B. A decrease in the demand for the good
Correct C. An increase in the price of the good
D. A decrease in the government's revenue

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A firm is operating in a perfectly competitive market. If the firm increases its production, what will happen to its price?
A. The price will increase
Correct B. The price will decrease
C. The price will remain the same
D. The price will be unaffected

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A government is considering implementing a new policy to reduce inflation. Which of the following is a likely effect of this action?
A. An increase in the money supply
B. A decrease in the interest rate
Correct C. A decrease in the inflation rate
D. An increase in the unemployment rate

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
A country's economic growth is influenced by its human capital, natural resources, and techno\logical advancements. However, the relationship between these factors is complex and often non-linear. U\sing the concept of returns to scale, explain how an increase in human capital can lead to a decrease in the marginal product of labor.
A. The production function exhibits increa\sing returns to scale.
Correct B. The marginal product of labor decreases as human capital increases.
C. The production function exhibits cons\tant returns to scale.
D. The marginal product of labor increases as human capital increases.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's current labor and capital inputs are 100 units and 400 units, respectively, calculate the marginal product of labor and the marginal product of capital.
Correct A. MPL = 5, MPK = 10
B. MPL = 10, MPK = 5
C. MPL = 5, MPK = 5
D. MPL = 10, MPK = 10

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \), where BOP is the balance of payments, X is exports, M is imports, F is foreign investment, and I is domestic investment. If the country's current exports and imports are $100 billion and $150 billion, respectively, and its foreign investment and domestic investment are $50 billion and $75 billion, respectively, calculate the balance of payments.
Correct A. $25 billion
B. $50 billion
C. $75 billion
D. $100 billion

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A firm's demand for labor is given by the following equation: L = 100 - 2P, where L is labor and P is the wage rate. If the current wage rate is $20 per hour, calculate the firm's demand for labor.
A. 50 units
Correct B. 75 units
C. 100 units
D. 125 units

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A country's inflation rate is given by the following equation: \pi = \( M/P \) \cdot \( 1 + r \), where \pi is the inflation rate, M is the money supply, P is the price level, and r is the interest rate. If the current money supply is $100 billion, the price level is $500, and the interest rate is 5%, calculate the inflation rate.
A. 2%
B. 5%
Correct C. 10%
D. 15%

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
Consider a firm operating in a perfectly competitive market. If the firm's average \cost curve intersects the demand curve at a point where the firm is producing at its optimal level of output, what can be concluded about the firm's returns to scale?
A. The firm is experiencing decrea\sing returns to scale.
B. The firm is experiencing increa\sing returns to scale.
Correct C. The firm is experiencing cons\tant returns to scale.
D. The firm is experiencing negative returns to scale.

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A country's GDP is ₦1,500 billion, its imports are ₦300 billion, and its exports are ₦400 billion. What is the country's balance of trade?
A. ₦100 billion surplus
Correct B. ₦100 billion deficit
C. ₦200 billion surplus
D. ₦200 billion deficit

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A firm's total revenue is given by the equation TR = 100q - 2q^2, where q is the quantity produced. What is the firm's marginal revenue?
Correct A. \( 100 - 4q \)
B. \( 100 + 4q \)
C. \( 100q - 2q^2 \)
D. \( 100q + 2q^2 \)

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A country's GNP is ₦2,000 billion, its GDP is ₦1,800 billion, and its net factor income from abroad is ₦200 billion. What is the country's net foreign investment?
A. ₦200 billion
Correct B. ₦400 billion
C. ₦600 billion
D. ₦800 billion

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A consumer has a budget constraint of ₦1,000 and a preference for two goods, A and B. The prices of the goods are ₦500 and ₦200, respectively. If the consumer chooses to buy 2 units of good A, how many units of good B can the consumer buy?
A. 2 units
Correct B. 4 units
C. 6 units
D. 8 units

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input levels are L = 16 and K = 9, what is the marginal product of labor (MPL) at these input levels?
A. 0.5
B. 1
Correct C. 2
D. 4

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A consumer's utility function is given by U = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12, and the price of good x is $2, what is the optimal quantity of good y that the consumer should purchase?
A. 2
B. 4
Correct C. 6
D. 8

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A firm's \cost function is given by C = 2L + 3K. If the firm's current input levels are L = 4 and K = 6, what is the total \cost of production?
A. 20
B. 30
Correct C. 40
D. 50

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A consumer's demand function for good x is given by Qx = 100 - 2Px. If the price of good x is $20, what is the quantity of good x that the consumer will purchase?
A. 40
B. 60
C. 80
Correct D. 100

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A firm's revenue function is given by R = 2Q - 3Q^2. If the firm's current output level is Q = 4, what is the marginal revenue (MR) at this output level?
A. -16
B. -14
C. -12
Correct D. -10

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support