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POST UTME UNIBEN 2025 Economics | Objective

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Question 1

A monopolistically competitive firm faces a demand curve with a cons\tant elasticity of -2. If the firm's marginal revenue (MR) curve is given by MR = 100 - 2Q, where Q is the quantity sold, what is the firm's optimal quantity?

A. 20 units

B. 30 units

Correct C. 40 units

D. 50 units

Correct Answer: C

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Question 2

A country's balance of payments (BOP) is in equilibrium when its current account (CA) is equal to its capital account (KA). If the CA is -100 million and the KA is 50 million, what is the net capital outflow?

Correct A. 50 million

B. 100 million

C. 150 million

D. 200 million

Correct Answer: A

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Question 3

A firm's production function is given by Q = 10L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's current input levels are L = 100 and K = 100, what is the marginal product of labor (MPL) at these levels?

A. 0.5

Correct B. 1

C. 1.5

D. 2

Correct Answer: B

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Question 4

A country's import demand function is given by M = 100 - 2Y + 3P, where M is imports, Y is income, and P is the price of imports. If the price of imports is 50 and income is 1000, what is the quantity of imports demanded?

A. 200

B. 300

Correct C. 400

D. 500

Correct Answer: C

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Question 5

A firm's production function is given by Q = 10L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's current input levels are L = 100 and K = 100, what is the total product of labor (TPL) at these levels?

A. 1000

B. 1500

Correct C. 2000

D. 2500

Correct Answer: C

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Question 6

A monopolistically competitive firm faces a demand curve with the following equation: $ Q = 100 - 2P $. If the firm's marginal revenue (MR) is given by $ MR = 50 - P $, find the firm's profit-maximizing price and quantity.

Correct A. P = 40, Q = 60

B. P = 30, Q = 70

C. P = 50, Q = 50

D. P = 20, Q = 80

Correct Answer: A

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Question 7

A country's balance of payments (BOP) is given by the following equation: $ BOP = X - M $, where X is the value of exports and M is the value of imports. If the country's exports are valued at ₦100 billion and imports are valued at ₦120 billion, what is the country's balance of payments?

A. ₦20 billion surplus

Correct B. ₦20 billion deficit

C. ₦10 billion surplus

D. ₦10 billion deficit

Correct Answer: B

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Question 8

A firm's production function is given by the equation: $ Q = 2L^0.5K^0.5 $, where L is labor and K is capital. If the firm's labor and capital are valued at ₦50,000 and ₦100,000 respectively, what is the firm's total product?

Correct A. ₦1,000,000

B. ₦500,000

C. ₦750,000

D. ₦1,500,000

Correct Answer: A

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Question 9

A country's national income (NI) is given by the equation: $ NI = C + I + G + \( X - M \ $ ), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's consumption is ₦500 billion, investment is ₦200 billion, government sp\ending is ₦300 billion, exports are ₦100 billion, and imports are ₦120 billion, what is the country's national income?

Correct A. ₦1,200 billion

B. ₦1,300 billion

C. ₦1,500 billion

D. ₦1,600 billion

Correct Answer: A

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Question 10

A monopolist faces a demand curve with the following equation: $ Q = 100 - 2P $. If the monopolist's marginal revenue (MR) is given by $ MR = 50 - P $, find the monopolist's profit-maximizing price and quantity.

Correct A. P = 40, Q = 60

B. P = 30, Q = 70

C. P = 50, Q = 50

D. P = 20, Q = 80

Correct Answer: A

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Question 11

The government of Nigeria has introduced a new policy to promote agricultural development in the country. The policy aims to increase crop yields and reduce post-harvest losses. However, some farmers have expressed concerns that the policy may lead to increased \costs of production. Which of the following is a potential consequence of the policy?

A. Increased crop yields

B. Reduced post-harvest losses

Correct C. Increased \costs of production

D. Decreased agricultural productivity

Correct Answer: C

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Question 12

A firm is producing a good with a demand function Q = 100 - 2P and a \cost function C = 2Q^2 + 100Q. If the market price is P = 50, what is the firm's profit-maximizing quantity?

A. 200

Correct B. 250

C. 300

D. 350

Correct Answer: B

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Question 13

The government of Nigeria has introduced a new tax policy to increase revenue. The policy includes a 10% tax on all goods and services. If a firm produces a good with a price of ₦100, what is the tax revenue generated by the firm?

Correct A. ₦10

B. ₦20

C. ₦30

D. ₦40

Correct Answer: A

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Question 14

A country has a trade deficit of $100 million and a balance of payments deficit of $200 million. What is the country's net foreign exchange position?

A. $100 million surplus

Correct B. $100 million deficit

C. $200 million surplus

D. $200 million deficit

Correct Answer: B

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Question 15

A firm is producing a good with a demand function Q = 100 - 2P and a \cost function C = 2Q^2 + 100Q. If the market price is P = 50, what is the firm's profit?

A. ₦10,000

Correct B. ₦20,000

C. ₦30,000

D. ₦40,000

Correct Answer: B

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Question 16

Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is D(p) = 100 - 2p and the marginal \cost (MC) of each firm is 10, what is the equilibrium price and quantity?

Correct A. $ p = 20, q = 40 $

B. $ p = 30, q = 30 $

C. $ p = 40, q = 20 $

D. $ p = 50, q = 10 $

Correct Answer: A

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Question 17

A monopolist faces a demand curve D(p) = 100 - 2p and has a marginal \cost (MC) of 10. If the firm's marginal revenue (MR) is given by MR(p) = 200 - 4p, what is the firm's profit-maximizing price and quantity?

Correct A. $ p = 30, q = 30 $

B. $ p = 40, q = 20 $

C. $ p = 50, q = 10 $

D. $ p = 60, q = 5 $

Correct Answer: A

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Question 18

A firm is producing a good with a production function F(x) = 2x^2 + 3x. If the firm's input price is 5, what is the firm's \cost-minimizing input level?

A. $ x = 1 $

Correct B. $ x = 2 $

C. $ x = 3 $

D. $ x = 4 $

Correct Answer: B

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Question 19

A country's balance of payments (BOP) 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 100 and imports are 80, what is the country's balance of payments?

Correct A. ( 20 )

B. ( 30 )

C. ( 40 )

D. ( 50 )

Correct Answer: A

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Question 20

A central bank is considering a monetary policy to reduce inflation. If the current inflation rate is 5% and the central bank wants to reduce it to 3%, what is the required reduction in the money supply?

A. ( 10% )

Correct B. ( 15% )

C. ( 20% )

D. ( 25% )

Correct Answer: B

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Question 21

Consider a firm operating in a perfectly competitive market with a given production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦200, and it currently employs 4 units of labor and 9 units of capital, calculate the firm's current total \cost.

Correct A. ₦2,400

B. ₦2,600

C. ₦2,800

D. ₦3,000

Correct Answer: A

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Question 22

A country's GDP is ₦10 trillion. If the country's population is 200 million, and the average GDP per capita is ₦50,000, what is the country's GDP growth rate if the GDP per capita increases by 10%?

A. 5%

Correct B. 10%

C. 15%

D. 20%

Correct Answer: B

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Question 23

A firm's production function is given by Q = 3L^0.5K^0.5. If the firm's current input prices are w = ₦150 and r = ₦300, and it currently employs 6 units of labor and 12 units of capital, calculate the firm's current total \cost.

A. ₦4,500

B. ₦5,000

Correct C. ₦5,500

D. ₦6,000

Correct Answer: C

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Question 24

A country's GDP is ₦15 trillion. If the country's population is 250 million, and the average GDP per capita is ₦60,000, what is the country's GDP growth rate if the GDP per capita increases by 15%?

A. 7.5%

B. 10%

Correct C. 12.5%

D. 15%

Correct Answer: C

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Question 25

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦200, and it currently employs 3 units of labor and 6 units of capital, calculate the firm's current total \cost.

A. ₦1,200

B. ₦1,400

Correct C. ₦1,600

D. ₦1,800

Correct Answer: C

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