POST UTME AL-HIKMAH UNIVERSITY 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's supply function is given by Q = 2P + 10. If the market price is P = 5, what is the firm's quantity supplied?
A. 20
B. 30
C. 40
D. 50
Question 2
The government of Nigeria has implemented a policy to increase the production of rice through the use of irrigation. This policy is an example of which type of economic planning?
A. Microeconomic planning
B. Macroeconomic planning
C. Fiscal policy
D. Monetary policy
Question 3
The Marshall-Lerner condition states that a country's balance of payments will improve if the sum of the percentage changes in its export and import prices exceeds the percentage change in its exchange rate. Which of the following scenarios would lead to an improvement in the balance of payments?
A. A 10% increase in export prices and a 5% decrease in import prices
B. A 5% decrease in export prices and a 10% increase in import prices
C. A 10% increase in export prices and a 10% increase in import prices
D. A 5% decrease in export prices and a 5% decrease in import prices
Question 4
A country's GDP is ₦1,500 billion, and its GNP is ₦1,600 billion. Calculate the country's net factor income from abroad.
A. ₦100 billion
B. ₦200 billion
C. ₦300 billion
D. ₦400 billion
Question 5
A firm is considering investing in a new project with a payback period of 5 years. If the firm's \cost of capital is 10%, what is the present value of the project?
A. ₦100,000
B. ₦90,909
C. ₦100,000 / \( 1 + 0.10 \)^5
D. ₦100,000 / \( 1 - 0.10 \)^5
Question 6
A country's GDP can be calculated u\sing the following formula: GDP = C + I + G + \( X - M \). Which of the following components of GDP is NOT a final exp\enditure?
A. Consumption (C)
B. Investment (I)
C. Government sp\ending (G)
D. Net exports \( X - M \)
Question 7
A country's GDP is ₦1,500 billion, and its GNP is ₦1,600 billion. Calculate the country's net factor income from abroad.
A. ₦100 billion
B. ₦200 billion
C. ₦300 billion
D. ₦400 billion
Question 8
The Central Bank of Nigeria has increased the reserve requirement for commercial banks from 10% to 15%. This is an example of which type of monetary policy?
A. Expansionary monetary policy
B. Contractionary monetary policy
C. Monetary tightening
D. Monetary ea\sing
Question 9
A monopolist faces a demand curve given by the equation Qd = 100 - 2P. If the firm's marginal revenue (MR) is given by the equation MR = 200 - 4P, what is the firm's optimal price?
A. ₦50
B. ₦25
C. ₦12.50
D. ₦6.25
Question 10
The government of a country has decided to implement a new tax policy aimed at reducing income inequality. The policy involves a progressive tax system where the tax rate increases as the income level increases. However, the policy also includes a tax exemption for low-income earners. Which of the following is a potential consequence of this policy?
A. Increased tax revenue for the government
B. Reduced income inequality among citizens
C. Increased tax burden on low-income earners
D. Decreased economic growth due to higher tax rates
Question 11
A firm is considering two different production processes. Process A has a fixed \cost of ₦500,000 and a variable \cost of ₦200 per unit. Process B has a fixed \cost of ₦300,000 and a variable \cost of ₦150 per unit. If the market price is ₦250 per unit, which process should the firm choose?
A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Question 12
A firm's demand function is given by Q = 100 - 2P. If the market price is P = 20, what is the firm's quantity demanded?
A. 40
B. 60
C. 80
D. 100
Question 13
A consumer has a utility function of U = 2x + 3y, where x and y are the quantities of two goods consumed. The prices of the two goods are $5 and $10, respectively. If the consumer's income is $100, what is the consumer's optimal bundle of goods?
A. x = 10, y = 5
B. x = 15, y = 3
C. x = 20, y = 2
D. x = 25, y = 1
Question 14
A firm is producing a good with a production function of Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the price of labor is $10 per unit and the price of capital is $20 per unit, and if the firm is currently producing 100 units of the good, what is the marginal product of labor?
A. 0.5
B. 1
C. 2
D. 4
Question 15
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. U\sing calculus, find the profit-maximizing quantity and price.
A. (20, 40)
B. (30, 50)
C. (40, 60)
D. (50, 70)

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