POST UTME WELLSPRING UNIVERSITY 2025 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
Assume a perfectly competitive market with a downward-sloping demand curve and a horizontal supply curve. If the market price falls from ₦100 to ₦80, what is the effect on the consumer surplus?
Question 2
The Central Bank of Nigeria (CBN) uses the monetary policy instrument of Open Market Operations (OMO) to increase the money supply in the economy. Which of the following is a consequence of this action?
Question 3
A firm is producing a good with a cons\tant elasticity of substitution (CES) production function given by \( Q = \( K^{-\rho} + L^{-\rho} \ \)^{-\frac{1}{\rho}} ). If the elasticity of substitution is 1.5, and the marginal product of labor is 20, what is the value of the output when K = 27 and L = 8?
Question 4
Consider a production function given by \( Q = 100K^{\frac{1}{3}}L^{\frac{2}{3}} \), where Q is output, K is capital, and L is labor. If the marginal product of labor is 20, and the marginal product of capital is 15, what is the value of the output when K = 27 and L = 8?
Question 5
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 balance of payments?
Question 6
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, what is the \cost-minimizing input combination?
Question 7
A country's GDP is given by the equation: GDP = C + I + G + \( X - M \). If the country's consumption is ₦500 billion, investment is ₦200 billion, government sp\ending is ₦300 billion, exports are ₦400 billion, and imports are ₦200 billion, calculate the country's GDP.
Question 8
A country's GNP is given by \( GNP = GDP + \( FDI - PDI \ \) ), where GNP is gross national product, GDP is gross domestic product, FDI is foreign direct investment, and PDI is portfolio investment. If the country's GDP is $100 billion, and the foreign direct investment is $20 billion, what is the value of the portfolio investment when the gross national product is $120 billion?
Question 9
Consider a country with a perfectly competitive labor market. The supply of labor is given by the equation \( L = 100 + 2Y \), where ( L ) is the quantity of labor supplied and ( Y ) is the wage rate. If the wage rate is ₦50, what is the quantity of labor supplied?
Question 10
A firm's production function is given by \( Q = 2K^{\frac{1}{2}}L^{\frac{1}{2}} \), where ( Q ) is the quantity produced, ( K ) is the capital stock, and ( L ) is the labor input. If the capital stock is 16 and the labor input is 9, what is the quantity produced?
Question 11
A monopolist faces a demand curve given by Q = 100 - 2P and a marginal revenue curve given by MR = 100 - 2Q. What is the profit-maximizing quantity?
Question 12
Consider a firm operating in a perfectly competitive market. The firm's demand curve is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. The firm's supply curve is given by Q = 2P - 10. Find the equilibrium price and quantity.
Question 13
A country's balance of payments is given by the following accounts: Current Account: ₦100, Capital Account: ₦50, and Financial Account: ₦20. What is the overall balance of payments?
Question 14
A consumer's utility function is given by U = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, calculate the consumer's optimal bundle of x and y.
Question 15
A central bank uses the money multiplier formula to determine the money supply in an economy. The formula is given by M = (MB x R)/r, where MB is the monetary base, R is the reserve requirement, and r is the currency ratio. If the monetary base is ₦100 billion, the reserve requirement is 0.2, and the currency ratio is 0.5, what is the money supply?
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