POST UTME UNIOSUN 2025 Economics | Objective

Are you preparing for POST UTME UNIOSUN exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2025 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
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.
Correct 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.

Correct Answer: C

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Question 2
A country's money supply is defined as the sum of its currency in circulation and its commercial bank deposits. If the money supply is ₦5,000 and the commercial bank deposits are ₦2,000, what is the value of the currency in circulation?
Correct A. ₦3,000
B. ₦2,000
C. ₦1,000
D. ₦4,000

Correct Answer: A

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Question 3
A consumer has a budget constraint of ₦100 and a preference for two goods, X and Y. The prices of X and Y are ₦10 and ₦0.50 respectively. If the consumer sp\ends all of their budget on X and Y, what is the maximum amount of Y that the consumer can buy?
A. ₦0.50
Correct B. ₦1.00
C. ₦2.00
D. ₦3.00

Correct Answer: B

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Question 4
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 100 units and the number of labor units is 25, what is the value of the number of capital units?
A. 10
Correct B. 20
C. 30
D. 40

Correct Answer: B

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Question 5
A country's GDP is ₦1,000,000 and its population is 10,000,000. What is the country's GDP per capita?
A. ₦0.10
Correct B. ₦0.20
C. ₦0.30
D. ₦0.40

Correct Answer: B

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Question 6
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.
Correct 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.

Correct Answer: B

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Question 7
A government imposes a tax on a firm's output. The firm's supply curve shifts to the left. What is the effect on the equilibrium price and quantity in the market?
Correct A. The equilibrium price increases and the equilibrium quantity decreases.
B. The equilibrium price decreases and the equilibrium quantity increases.
C. The equilibrium price remains the same and the equilibrium quantity decreases.
D. The equilibrium price increases and the equilibrium quantity remains the same.

Correct Answer: A

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Question 8
A firm's demand curve is given by Q = 100 - 2P. If the firm's marginal revenue (MR) curve is given by MR = 100 - 2Q, what is the firm's elasticity of demand at a price of P = 20?
A. The elasticity of demand is unit elastic.
B. The elasticity of demand is inelastic.
Correct C. The elasticity of demand is elastic.
D. The elasticity of demand is not defined.

Correct Answer: C

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Question 9
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.
Correct B. The firm's revenue decreases.
C. The firm's revenue remains the same.
D. The firm's revenue becomes negative.

Correct Answer: B

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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)?
Correct A. MPK = 3.
B. MPK = 4.
C. MPK = 5.
D. MPK = 6.

Correct Answer: A

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Question 11
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, find the price at which the quantity demanded is 60 units.
A. ₦20
B. ₦40
Correct C. ₦60
D. ₦80

Correct Answer: C

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Question 12
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
Correct C. 50
D. 60

Correct Answer: C

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Question 13
A consumer has an income of ₦1000 and faces the following prices: P_x = ₦10 and P_y = ₦20. The consumer's utility function is given by U = 2x + 3y, where x and y are the quantities consumed of goods X and Y, respectively. Find the consumer's optimal bundle of goods X and Y.
Correct A. x = 20, y = 30
B. x = 30, y = 20
C. x = 40, y = 10
D. x = 50, y = 0

Correct Answer: A

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Question 14
A firm has a \cost function given by C = 2Q^2 + 3Q + 10, where Q is the quantity produced. If the firm produces 10 units of output, find the total \cost and the marginal \cost.
Correct A. Total Cost = ₦150, Marginal Cost = ₦20
B. Total Cost = ₦200, Marginal Cost = ₦30
C. Total Cost = ₦250, Marginal Cost = ₦40
D. Total Cost = ₦300, Marginal Cost = ₦50

Correct Answer: A

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Question 15
A consumer's demand function for a product is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the consumer's income is ₦1000 and the price of the product is ₦20, find the consumer's optimal quantity demanded.
A. 20
Correct B. 30
C. 40
D. 50

Correct Answer: B

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Question 16
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
Correct B. 2.5
C. 5
D. 10

Correct Answer: B

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Question 17
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \). If the country's exports are $100 billion, imports are $80 billion, foreign investment is $20 billion, and domestic investment is $30 billion, what is the balance of payments?
A. $10 billion
B. $20 billion
Correct C. $30 billion
D. $40 billion

Correct Answer: C

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Question 18
A firm's \cost function is given by C(x) = 2x^2 + 10x. If the firm's marginal \cost function is MC(x) = 4x + 10, find the value of x that minimizes \cost.
Correct A. 0
B. 2.5
C. 5
D. 10

Correct Answer: A

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Question 19
A country's GDP is given by the following equation: GDP = C + I + G + \( X - M \). If the country's consumption is $500 billion, investment is $100 billion, government sp\ending is $200 billion, exports are $150 billion, and imports are $120 billion, what is the GDP?
A. $1.1 trillion
Correct B. $1.2 trillion
C. $1.3 trillion
D. $1.4 trillion

Correct Answer: B

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Question 20
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
Correct B. 3.33
C. 6.67
D. 10

Correct Answer: B

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Question 21
A consumer's indifference curve is given by the equation u(x, y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, find the consumer's optimal bundle of x and y.
Correct A. x = 60, y = 40
B. x = 40, y = 60
C. x = 50, y = 50
D. x = 70, y = 30

Correct Answer: A

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Question 22
The demand function for a product is given by q = 100 - 2p. If the price of the product is ₦20, find the quantity demanded.
A. 40
Correct B. 60
C. 80
D. 100

Correct Answer: B

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Question 23
A firm's production function is given by q = 2L^2 + 3K. If the firm's output is 100 units and the price of labor is ₦10 per unit, find the optimal level of capital.
A. 10
B. 20
Correct C. 30
D. 40

Correct Answer: C

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Question 24
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.
Correct A. p = 20, q = 60
B. p = 25, q = 50
C. p = 30, q = 40
D. p = 35, q = 30

Correct Answer: A

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Question 25
A firm's production function is given by q = 2L^2 + 3K. If the firm's output is 100 units and the price of labor is ₦10 per unit, find the optimal level of labor.
A. 10
Correct B. 20
C. 30
D. 40

Correct Answer: B

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