POST UTME ACHIEVERS UNIVERSITY 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's indifference curve is given by the equation y = 2x^2 + 5x + 1, where x is the number of units of good X and y is the number of units of good Y. If the consumer's budget constraint is given by the equation 2y + 3x = 12, what is the consumer's optimal consumption bundle?
A. x = 1, y = 2
B. x = 2, y = 3
C. x = 3, y = 4
D. x = 4, y = 5
Question 2
A consumer in Nigeria has a budget of ₦10,000 and a demand curve for a good with the following equation: Qd = 100 - 2P. The consumer's income is ₦5,000, and the price of the good is ₦2,000. What is the consumer's optimal quantity of the good?
A. Q = 20
B. Q = 30
C. Q = 40
D. Q = 50
Question 3
A country's GDP is ₦10 trillion, and its imports are ₦2 trillion. If the country's exports are ₦1.5 trillion, what is its balance of trade?
A. ₦0
B. ₦500 million
C. ₦1 billion
D. ₦1.5 trillion
Question 4
The returns to scale in a production function can be classified into three types: increa\sing, decrea\sing, and cons\tant. Which of the following production functions exhibits cons\tant returns to scale?
A. Q = 2K^2L^2
B. Q = 2K^2L
C. Q = 2KL^2
D. Q = 2K^2L^2 + 3KL^2
Question 5
A firm's revenue function is given by R(x) = 2x^2 + 5x + 1, where x is the number of units produced. If the firm's marginal revenue is 10 when x = 3, what is the value of the firm's total revenue at x = 5?
A. ₦1250
B. ₦1500
C. ₦1750
D. ₦2000
Question 6
A central bank uses the following monetary policy tools to control inflation:\n\n| Tool | Effect on Inflation |\n| --- | --- | --- |\n| Open Market Operations | Reduces inflation |\n| Reserve Requirements | Reduces inflation |\n| Discount Rate | Increases inflation |\n\nWhat is the effect of increa\sing the discount rate on inflation?
A. Reduces inflation
B. Increases inflation
C. Has no effect on inflation
D. Decreases inflation
Question 7
Suppose a firm is producing a good with a cons\tant elasticity of demand of 2. If the price elasticity of supply is 3, and the firm's marginal revenue is ₦500, what is the change in quantity demanded?
A. ₦250
B. ₦500
C. ₦750
D. ₦1000
Question 8
A firm's \cost function is given by ( C(q) = 2q^2 + 10q + 5 ). If the firm's revenue function is ( R(q) = 4q^2 - 2q + 1 ), what is the firm's profit-maximizing quantity?
A. 5
B. 10
C. 15
D. 20
Question 9
A country's balance of payments account shows a trade deficit of ₦500 billion, a current account deficit of ₦300 billion, and a capital account surplus of ₦200 billion. What is the country's overall balance of payments position?
A. ₦100 billion surplus
B. ₦200 billion deficit
C. ₦300 billion deficit
D. ₦500 billion deficit
Question 10
A firm's production function is given by Q = 2K^2L^2. If the firm's capital stock increases by 20% and labor increases by 10%, what is the percentage change in output?
A. 30%
B. 20%
C. 10%
D. 40%
Question 11
A firm in Nigeria is considering a new investment project. The firm's \cost of capital is 10%, and the project's expected return is 12%. What is the net present value (NPV) of the project?
A. NPV = 100,000
B. NPV = 120,000
C. NPV = 150,000
D. NPV = 180,000
Question 12
A firm in Nigeria is facing a perfectly competitive market. The firm's marginal \cost (MC) is cons\tant at ₦5, and the market price is ₦10. What is the firm's optimal quantity of production?
A. Q = 2
B. Q = 3
C. Q = 4
D. Q = 5
Question 13
The National Bureau of Statistics (NBS) releases the Gross Domestic Product (GDP) of Nigeria for the year 2020 as ₦120 trillion. If the population of Nigeria is 200 million, what is the per capita GDP?
A. ₦600,000
B. ₦500,000
C. ₦400,000
D. ₦300,000
Question 14
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are 100 and 400 respectively, what is the firm's marginal product of labor?
A. 0.5
B. 1
C. 2
D. 4
Question 15
A country's population is growing at a rate of 2% per annum. If the country's current population is 100 million, what will be its population in 10 years?
A. 120 million
B. 140 million
C. 160 million
D. 180 million

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