POST UTME AFE BABALOLA UNIVERSITY 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's total revenue (TR) is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm sells 20 units, what is the total revenue?
A. ₦2000
B. ₦1800
C. ₦1600
D. ₦1400
Question 2
A firm has a \cost function given by C(Q) = 2Q^2 + 10Q + 100. If the firm sells its output at a price of ₦50 per unit, what is the profit-maximizing quantity?
A. Q = 5
B. Q = 10
C. Q = 15
D. Q = 20
Question 3
A consumer's indifference curve is given by U(x, y) = 2x + 3y. 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 = 10, y = 20
B. x = 20, y = 10
C. x = 15, y = 15
D. x = 5, y = 5
Question 4
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, determine the country's GDP.
A. ₦1.5 trillion
B. ₦1.8 trillion
C. ₦2.0 trillion
D. ₦2.2 trillion
Question 5
A company has a revenue function given by R(x) = 3x^2 - 2x + 1, where R(x) is the revenue and x is the number of units sold. If the company sells 5 units, what is the total revenue?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 6
A government imposes a tax of ₦10 on every unit of a commodity. If the demand function for the commodity is given by Qd = 100 - 2P and the supply function is given by Qs = 2P + 10, what is the new equilibrium price and quantity?
A. P = ₦40, Q = 20
B. P = ₦50, Q = 15
C. P = ₦60, Q = 10
D. P = ₦70, Q = 5
Question 7
A consumer's utility function is given by U(x,y) = 2x + 3y, where x is the number of units of good X and y is the number of units of good Y. If the consumer has a budget of ₦100 and the prices of good X and good Y are ₦5 and ₦3 respectively, what is the optimal consumption bundle?
A. (10,10)
B. (20,5)
C. (15,15)
D. (5,20)
Question 8
Agricultural mechanization in Nigeria has been hindered by the high \cost of machinery. However, the government has introduced a subsidy program to reduce the \cost. U\sing the concept of opportunity \cost, explain why the subsidy program may not be effective in increa\sing agricultural mechanization.
A. The subsidy program may lead to over-reliance on government support, reducing the incentive for farmers to invest in their own machinery.
B. The subsidy program may not address the underlying issue of high production \costs, which may lead to a decrease in agricultural productivity.
C. The subsidy program may create a market distortion, leading to an increase in the demand for machinery, but not necessarily an increase in agricultural mechanization.
D. The subsidy program may not be effective in increa\sing agricultural mechanization because it does not address the issue of limited access to credit for farmers.
Question 9
A firm is operating in a monopoly market with a demand curve given by P = 100 - 2x. If the firm's marginal \cost is ₦20, what is the firm's optimal quantity?
A. x = 20
B. x = 30
C. x = 40
D. x = 50
Question 10
A monopolist's marginal revenue (MR) is given by the equation MR = 100 - 2x, where x is the quantity sold. If the monopolist's marginal \cost (MC) is 20, at what quantity will the monopolist stop producing?
A. 10
B. 20
C. 30
D. 40
Question 11
Determine the equilibrium price and quantity of a commodity when the demand function is given by Qd = 100 - 2P and the supply function is given by Qs = 2P - 10.
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 12
A firm's production function is given by the equation Q = 2L^2 + 3K, where Q is output, L is labor, and K is capital. If the firm uses 10 units of labor and 5 units of capital, what is the output?
A. 50
B. 60
C. 70
D. 80
Question 13
A bank's reserve requirement is 20%. If the bank has ₦1000 in reserves and wants to increase its l\ending by ₦500, how much will it need to borrow from the central bank?
A. ₦200
B. ₦250
C. ₦300
D. ₦350
Question 14
U\sing the concept of international trade, explain why Nigeria may import goods from other countries, despite having a comparative advantage in producing those goods.
A. Nigeria may import goods from other countries because of the high transportation \costs of exporting goods.
B. Nigeria may import goods from other countries because of the high tariffs imposed by other countries on Nigerian exports.
C. Nigeria may import goods from other countries because of the low quality of Nigerian goods.
D. Nigeria may import goods from other countries because of the high demand for those goods in Nigeria.
Question 15
A farmer in Nigeria has 100 hectares of land to cultivate maize. The marginal product of labor is 10 units of maize per hour of labor, and the wage rate is ₦100 per hour. U\sing the concept of scarcity and choice, explain why the farmer may choose to hire labor to cultivate the land.
A. The farmer may choose to hire labor because the marginal product of labor is greater than the wage rate.
B. The farmer may choose to hire labor because the wage rate is greater than the marginal product of labor.
C. The farmer may choose to hire labor because the land is too large to cultivate alone.
D. The farmer may choose to hire labor because the farmer is too old to cultivate the land alone.

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