POST UTME AAUA 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's utility function is given by ( u(x,y) = xy ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle?
A. x = 80, y = 60
B. x = 60, y = 80
C. x = 40, y = 120
D. x = 120, y = 40
Question 2
A government is considering implementing a new policy to reduce poverty. The policy involves providing a subsidy of ₦500 to each poor household. If the government expects 100,000 households to benefit from the policy, calculate the total \cost of the policy.
A. ₦50 billion
B. ₦40 billion
C. ₦30 billion
D. ₦20 billion
Question 3
A country's GDP is ₦1.5 trillion, and its GNP is ₦1.8 trillion. What is the net factor income from abroad?
A. ₦0.3 trillion
B. ₦0.6 trillion
C. ₦0.9 trillion
D. ₦1.2 trillion
Question 4
The concept of scarcity in economics implies that the production of one good is limited by the availability of resources that could be used to produce other goods. This is an example of a fundamental principle of economics, which is often referred to as the law of _______
A. diminishing returns
B. comparative advantage
C. opportunity \cost
D. gains from trade
Question 5
A firm's demand curve for a product is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's total revenue is ₦10,000, what is the price elasticity of demand?
A. 0.5
B. 1.0
C. 1.5
D. 2.0
Question 6
A country's balance of payments is given by the following table. What is the current account balance?
A. ₦100 million
B. ₦200 million
C. ₦300 million
D. ₦400 million
Question 7
A firm is producing a good u\sing a production function of the form Q = 2L^0.5K^0.5, where L is labor and K is capital. If the firm's MPL is 0.5 units of output per additional worker, and the wage rate is ₦100 per hour, what is the firm's optimal level of capital?
A. 10 units of capital
B. 20 units of capital
C. 30 units of capital
D. 40 units of capital
Question 8
A firm is producing a commodity with the following \cost function: C(q) = 100 + 2q + 0.5q^2. If the firm's revenue function is R(q) = 120q - 0.5q^2, what is the firm's profit-maximizing quantity of output?
A. 20
B. 30
C. 40
D. 50
Question 9
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's revenue function is given by R(P) = 50P, what is the elasticity of demand?
A. 0.5
B. 1
C. 2
D. 3
Question 10
A firm's demand function is given by \( Q = 100 - 2P \). If the firm's marginal revenue is ₦50, what is the firm's optimal price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 11
Suppose a country's export function is given by X = 100 + 2Y, where X is the quantity exported and Y is the quantity imported. If the country's import function is given by Y = 50 + P, where P is the price, what is the balance of payments?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 12
A consumer's utility function is given by U = 2x + 3y. If the budget constraint is 2x + 3y = ₦100, what is the optimal bundle?
A. x = 10, y = 20
B. x = 20, y = 10
C. x = 30, y = 5
D. x = 5, y = 30
Question 13
A government is considering a policy to reduce income inequality. One option is to increase the tax rate on high-income earners. What is the effect of this policy on the Laffer Curve?
A. Shift the Laffer Curve to the left
B. Shift the Laffer Curve to the right
C. Rotate the Laffer Curve clockwise
D. Rotate the Laffer Curve counterclockwise
Question 14
The national income accounting system is used to measure the total output of a country's economy. The Gross Domestic Product (GDP) is a key indicator of a country's economic performance. Which of the following is NOT a component of GDP?
A. consumption
B. investment
C. government sp\ending
D. net exports
Question 15
A government is considering a tax on a particular good. The supply curve for the good is given by Q = 50 + 2P, where Q is the quantity supplied and P is the price. If the government imposes a tax of ₦10 per unit, what is the new supply curve?
A. Q = 50 + 2P
B. Q = 40 + 2P
C. Q = 50 + 4P
D. Q = 40 + 4P

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