POST UTME UNIOSUN 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's supply function is given by Q = 2P - 100, what is the equilibrium price and quantity?
A. P = ₦50, Q = 50
B. P = ₦75, Q = 75
C. P = ₦100, Q = 100
D. P = ₦125, Q = 125
Question 2
A firm's average total \cost curve intersects its average variable \cost curve at a point where the firm's marginal \cost is equal to its average total \cost. What is the implication of this point for the firm's production decision?
A. The firm is producing at its optimal level of output.
B. The firm is producing at a level of output where its marginal \cost is greater than its average total \cost.
C. The firm is producing at a level of output where its marginal \cost is less than its average total \cost.
D. The firm is producing at a level of output where its marginal \cost is equal to its average variable \cost.
Question 3
A monopolistically competitive firm faces a demand curve with the following equation: Q = 100 - 2P. The firm's marginal revenue (MR) is given by MR = 200 - 2Q. What is the firm's equilibrium price?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 4
A government imposes a tax of ₦5 per unit on a product. If the demand function for the product is given by q = 100 - 2p and the supply function is given by q = 2p - 50, find the equilibrium price and quantity.
A. p = 20, q = 60
B. p = 25, q = 50
C. p = 30, q = 40
D. p = 35, q = 30
Question 5
A government increases the tax rate on a firm's output. The firm's supply curve shifts to the left. What is the effect on the firm's revenue?
A. The firm's revenue increases.
B. The firm's revenue decreases.
C. The firm's revenue remains the same.
D. The firm's revenue becomes negative.
Question 6
A firm's revenue function is given by R(x) = 2x^2 + 10x. If the firm's marginal revenue function is MR(x) = 4x + 10, find the value of x that maximizes revenue.
A. 0
B. 2.5
C. 5
D. 10
Question 7
A firm's production function is given by Q = 100K^0.5L^0.5, where Q is output, K is capital, and L is labor. If the price of capital is ₦100 per unit and the price of labor is ₦50 per unit, and the firm's budget constraint is ₦10,000, what is the optimal level of capital and labor to maximize output?
A. K = 50, L = 100
B. K = 100, L = 50
C. K = 200, L = 25
D. K = 25, L = 200
Question 8
A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production functions are given by X = 2L + 3K and Y = 4L + 2K. If the firm has 10 units of labor and 5 units of capital, find the maximum value of the objective function Z = 2X + 3Y.
A. 30
B. 40
C. 50
D. 60
Question 9
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, where MR = MC, and the firm is producing 100 units of output, what is the opportunity \cost of producing one more unit of output?
A. The opportunity \cost is the price of the 101st unit.
B. The opportunity \cost is the price of the 100th unit.
C. The opportunity \cost is the price of the 99th unit.
D. The opportunity \cost is the price of the 98th unit.
Question 10
A firm's production function is given by Q = 2L + 3K. If the firm's marginal product of labor (MPL) is given by MPL = 2, what is the firm's marginal product of capital (MPK)?
A. MPK = 3.
B. MPK = 4.
C. MPK = 5.
D. MPK = 6.
Question 11
A firm's production function is given by Q = 2L + 3K, where L is labor and K is capital. If the firm's marginal product of labor (MPL) is 2 and the wage rate is ₦50 per hour, what is the optimal level of labor?
A. 10 hours
B. 20 hours
C. 30 hours
D. 40 hours
Question 12
A firm's revenue function is given by R(x) = 3x^2 + 20x. If the firm's marginal revenue function is MR(x) = 6x + 20, find the value of x that maximizes revenue.
A. 0
B. 3.33
C. 6.67
D. 10
Question 13
A country's balance of payments is given by the following table:\n\n| Category | Amount (₦) |\n| --- | --- |\n| Exports | 500,000,000 |\n| Imports | 600,000,000 |\n| Net Factor Income | 100,000,000 |\n| Net Transfer | 50,000,000 |\n\nWhat is the country's balance of payments deficit?
A. ₦150,000,000
B. ₦200,000,000
C. ₦250,000,000
D. ₦300,000,000
Question 14
A country's GDP is given by the equation GDP = C + I + G + \( X - M \). If the country's current GDP is $100 billion, and the values of C, I, G, X, and M are $20 billion, $30 billion, $10 billion, $50 billion, and $20 billion respectively, what will be the country's trade balance?
A. $10 billion surplus
B. $10 billion deficit
C. $20 billion surplus
D. $20 billion deficit
Question 15
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input levels are L = 4 and K = 9, what will be the firm's optimal input levels for maximum output?
A. L = 16, K = 81
B. L = 9, K = 16
C. L = 4, K = 9
D. L = 1, K = 1

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