POST UTME UNILAG 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
U\sing the Marshall-Lerner condition, determine whether a country will experience an improvement in its balance of payments position if the price elasticity of demand for its exports is 0.5 and the price elasticity of demand for its imports is 2.0.
A. The country will experience an improvement in its balance of payments position.
B. The country will experience a deterioration in its balance of payments position.
C. The country's balance of payments position will remain unchanged.
D. Insufficient information to determine the outcome.
Question 2
A monopolist faces a market demand curve given by Q = 100 - 2P. The monopolist's marginal \cost curve is given by MC = 10 + 2Q. What is the monopolist's profit-maximizing price?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 3
A firm's demand function is given by Qd = 100 - 2P + 3Y, where Qd is the quantity demanded, P is the price, and Y is the income. If the price is 20 and the income is 50, what is the price elasticity of demand?
A. 0.5
B. 1
C. 2
D. 3
Question 4
A country's GDP is given by the equation GDP = C + I + G + \( X - M \). If the country's consumption, investment, government sp\ending, exports, and imports are 100, 50, 20, 80, and 60 respectively, what is the country's GDP?
A. ₦250
B. ₦300
C. ₦350
D. ₦400
Question 5
Determine the price elasticity of demand for a product whose price elasticity of demand is 0.8 and the quantity demanded is 100 units when the price is ₦120.
A. 0.6
B. 0.8
C. 1.2
D. 1.5
Question 6
A firm's demand function is given by Q = 100 - 2P. If the firm's \cost function is given by C = 50 + 5Q, calculate the profit-maximizing price and quantity.
A. P = ₦20, Q = 60
B. P = ₦30, Q = 40
C. P = ₦40, Q = 20
D. P = ₦50, Q = 10
Question 7
A country's GDP is ₦100 billion, its imports are ₦20 billion, and its exports are ₦30 billion. What is the country's net foreign income?
A. ₦10 billion
B. ₦20 billion
C. ₦30 billion
D. ₦40 billion
Question 8
A firm has a total revenue function of TR = 2x^2 + 10x + 5, where x is the number of units sold. If the firm sells 5 units, what is the marginal revenue?
A. 10
B. 15
C. 20
D. 25
Question 9
A government is considering a fiscal policy aimed at reducing the budget deficit. U\sing the concept of crowding out, determine the effect on private investment.
A. Private investment will increase.
B. Private investment will decrease.
C. Private investment will remain unchanged.
D. The effect on private investment is ambiguous.
Question 10
The concept of national income accounting in economics implies that the measurement of the total value of goods and services produced within a country. Which of the following is a correct example of national income accounting in Nigeria?
A. Gross Domestic Product (GDP)
B. Gross National Product (GNP)
C. Net Domestic Product (NDP)
D. Net National Product (NNP)
Question 11
A central bank implements a monetary policy aimed at reducing inflation. U\sing the Phillips curve, determine the effect on the unemployment rate.
A. The unemployment rate will increase.
B. The unemployment rate will decrease.
C. The unemployment rate will remain unchanged.
D. The effect on the unemployment rate is ambiguous.
Question 12
A government imposes a tax on a good, cau\sing the supply curve to shift to the left. What is the effect on the equilibrium price and quantity of the good?
A. The equilibrium price increases and the equilibrium quantity decreases.
B. The equilibrium price decreases and the equilibrium quantity increases.
C. The equilibrium price increases and the equilibrium quantity increases.
D. The equilibrium price decreases and the equilibrium quantity decreases.
Question 13
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, calculate the \cost-minimizing input combination when the firm produces 100 units of output.
A. L = 100, K = 100
B. L = 200, K = 50
C. L = 50, K = 200
D. L = 100, K = 50
Question 14
A firm operating in a perfectly competitive market is faced with a downward-sloping demand curve. If the firm increases its output from 100 units to 120 units, its total revenue increases by ₦120,000. What is the price elasticity of demand for the firm's product?
A. 0.5
B. 1.0
C. 1.5
D. 2.0
Question 15
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, calculate the \cost-minimizing input combination when the firm produces 100 units of output.
A. L = 100, K = 100
B. L = 200, K = 50
C. L = 50, K = 200
D. L = 100, K = 50

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