POST UTME BSU 2018 Economics | Objective

Are you preparing for POST UTME BSU exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2018 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
The concept of scarcity in economics implies that the wants and needs of individuals are unlimited, but the resources available to satisfy these wants and needs are limited. Which of the following best describes the opportunity \cost of a choice?
Correct A. The value of the next best alternative that is given up when a choice is made.
B. The \cost of producing a good or service.
C. The benefit of a choice.
D. The profit made from a choice.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
Agricultural development in Nigeria has been hindered by several factors, including inadequate infrastructure and lack of access to credit. Which of the following is a consequence of industrialization in Nigeria?
A. Increased employment opportunities.
B. Improved agricultural productivity.
Correct C. Increased dep\endence on imported goods.
D. Reduced poverty levels.

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
The demand for a product is elastic if a small change in price leads to a large change in quantity demanded. Which of the following is a characteristic of an elastic demand curve?
Correct A. A steep slope.
B. A horizontal slope.
C. A vertical slope.
D. A flat slope.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A firm's total revenue is the product of the price per unit and the quantity sold. Which of the following is a characteristic of a firm's total revenue curve?
A. It is always increa\sing.
B. It is always decrea\sing.
Correct C. It is U-shaped.
D. It is V-shaped.

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A consumer's utility function is a mathematical representation of the satisfaction derived from consuming a good or service. Which of the following is a characteristic of a consumer's utility function?
A. It is always increa\sing.
B. It is always decrea\sing.
Correct C. It is U-shaped.
D. It is V-shaped.

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
A firm's revenue function is given by ( R(x) = 100x - 2x^2 ), where ( x ) is the number of units produced. If the firm's marginal revenue is ( MR(x) = 100 - 4x ), find the value of ( x ) at which the firm's marginal revenue is zero.
A. 5
Correct B. 10
C. 15
D. 20

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A consumer's utility function is given by ( U(x,y) = 2x + 3y ), where ( x ) and ( y ) are the quantities of two goods consumed. If the consumer's budget constraint is \( 2x + 3y = 12 \), find the value of ( x ) that maximizes the consumer's utility.
A. 2
Correct B. 4
C. 6
D. 8

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A firm's \cost function is given by ( C(x) = 100 + 2x^2 ), where ( x ) is the number of units produced. If the firm's revenue function is ( R(x) = 100x - 2x^2 ), find the value of ( x ) at which the firm's profit is maximized.
A. 5
Correct B. 10
C. 15
D. 20

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A consumer's demand function for a good is given by ( Q(p) = 100 - 2p ), where ( p ) is the price of the good. If the consumer's income is \( I = 100 \), find the value of ( p ) at which the consumer's demand is maximized.
A. 20
Correct B. 30
C. 40
D. 50

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A firm's supply function is given by ( Q(s) = 2s + 5 ), where ( s ) is the price of the good. If the firm's marginal \cost is ( MC(s) = 2s ), find the value of ( s ) at which the firm's supply is maximized.
A. 5
Correct B. 10
C. 15
D. 20

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
A firm's demand curve is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply curve is given by Qs = 2P - 50. Find the equilibrium price and quantity.
A. ₦50
Correct B. ₦75
C. ₦100
D. ₦125

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A country's GDP is ₦10 trillion. The government sp\ends ₦2 trillion on goods and services. The private sector sp\ends ₦3 trillion on goods and services. The foreign sector sp\ends ₦1 trillion on goods and services. What is the country's GDP at factor \cost?
A. ₦8 trillion
B. ₦9 trillion
Correct C. ₦10 trillion
D. ₦11 trillion

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A firm's total revenue is given by TR = 100P - 0.5P^2, where P is the price. Find the price that maximizes the firm's total revenue.
A. ₦50
B. ₦75
Correct C. ₦100
D. ₦125

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A country's GNP is ₦12 trillion. The government sp\ends ₦3 trillion on goods and services. The private sector sp\ends ₦4 trillion on goods and services. The foreign sector sp\ends ₦2 trillion on goods and services. What is the country's GNP at market price?
A. ₦15 trillion
B. ₦16 trillion
C. ₦17 trillion
Correct D. ₦18 trillion

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A firm's demand curve is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply curve is given by Qs = 2P - 50. Find the elasticity of demand at the equilibrium price.
A. 0.5
Correct B. 1
C. 2
D. 3

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor and K is capital. If the firm has 100 units of labor and 200 units of capital, what is the marginal product of labor?
A. 5
Correct B. 10
C. 15
D. 20

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer has a budget of ₦100 and the prices of the two goods are ₦5 and ₦10 respectively, what is the optimal bundle of goods?
Correct A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 3, y = 15

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A country's balance of payments is given by the following equation: BOP = X - M, where X is exports and M is imports. If the country's exports are ₦500 billion and its imports are ₦600 billion, what is the balance of payments?
Correct A. ₦-100 billion
B. ₦100 billion
C. ₦500 billion
D. ₦600 billion

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm wants to maximize its revenue, what is the optimal price?
A. ₦20
Correct B. ₦30
C. ₦40
D. ₦50

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A country's supply function is given by Q = 2P + 50, where Q is quantity supplied and P is price. If the country's demand function is Q = 100 - 2P, what is the equilibrium price?
A. ₦20
Correct B. ₦30
C. ₦40
D. ₦50

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the supply of the product is given by the equation Qs = 2P - 50, where Qs is the quantity supplied, find the equilibrium price and quantity.
A. ₦50, 150 units
Correct B. ₦75, 100 units
C. ₦25, 200 units
D. ₦100, 50 units

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A monopolist faces a demand curve given by Qd = 100 - 2P and a marginal revenue curve given by MR = 20 - 2Q. Find the price and quantity at which the monopolist maximizes profit.
A. ₦50, 100 units
Correct B. ₦75, 75 units
C. ₦25, 150 units
D. ₦100, 50 units

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A government imposes a tax of ₦10 per unit on a product. The demand for the product is given by Qd = 100 - 2P and the supply is given by Qs = 2P - 50. Find the new equilibrium price and quantity.
Correct A. ₦60, 120 units
B. ₦80, 80 units
C. ₦40, 160 units
D. ₦120, 40 units

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A firm has a production function given by Q = 2L + 3K, where Q is the output, L is the labor and K is the capital. If the price of labor is ₦10 per unit and the price of capital is ₦20 per unit, find the optimal level of labor and capital.
Correct A. L = 20 units, K = 10 units
B. L = 10 units, K = 20 units
C. L = 30 units, K = 15 units
D. L = 15 units, K = 30 units

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A government wants to reduce the poverty rate in a country. Which of the following policies is most likely to achieve this goal?
A. Increa\sing the minimum wage
B. Providing subsidies to farmers
Correct C. Investing in education and healthcare
D. Reducing taxes on the rich

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support