POST UTME BSU 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The concept of scarcity in economics implies that the production of one good is at the expense of another. Which of the following is a correct example of this principle?
A. A farmer must choose between planting wheat or corn due to limited land
B. A consumer must decide between buying a new car or a new house
C. A company must allocate its resources between producing goods or services
D. A government must decide between investing in infrastructure or education
Question 2
A government imposes a tax of $5 on a firm's output. If the firm's supply curve is given by Q = 100 + 2P, what is the new supply curve after the tax?
A. Q = 100 + 2P - 5
B. Q = 100 + 2P + 5
C. Q = 100 - 2P + 5
D. Q = 100 - 2P - 5
Question 3
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what is the likely effect on its revenue?
A. An increase in revenue
B. A decrease in revenue
C. No change in revenue
D. A decrease in revenue
Question 4
A consumer's budget constraint is given by P_x x + P_y y = I, where P_x and P_y are the prices of x and y, respectively, and I is the consumer's income. If the consumer's current income is I = 100, and the prices of x and y are P_x = 2 and P_y = 3, respectively, what is the consumer's optimal consumption bundle?
A. ( (20, 10) )
B. ( (15, 15) )
C. ( (10, 20) )
D. ( (5, 25) )
Question 5
A consumer's indifference curve is a graphical representation of the trade-offs they are willing to make between two goods. Which of the following is a characteristic of an indifference curve?
A. It is a straight line
B. It is a curved line
C. It is a horizontal line
D. It is a vertical line
Question 6
A firm is producing a good with a production function Q = 2L^0.5K^0.5. If the firm has 100 units of labor (L) and 200 units of capital (K), what is the optimal quantity of output (Q)?
A. 100
B. 150
C. 200
D. 250
Question 7
A central bank is considering a monetary policy to reduce inflation. If the current inflation rate is 5% and the central bank wants to reduce it to 3%, what is the required reduction in the money supply?
A. 10%
B. 15%
C. 20%
D. 25%
Question 8
A government is considering a tax on a good with a price elasticity of demand of -0.5. If the tax is 10% of the price, what is the effect on the quantity demanded?
A. Increase by 10%
B. Decrease by 10%
C. Increase by 5%
D. Decrease by 5%
Question 9
The concept of opportunity \cost is closely related to the concept of scarcity. Which of the following is a correct example of opportunity \cost?
A. The \cost of producing a good
B. The \cost of not producing a good
C. The \cost of producing one good instead of another
D. The \cost of producing a good and selling it
Question 10
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where L is labor and K is capital. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the firm's marginal product of labor?
A. \( \frac{1}{2} \sqrt{\frac{K}{L}} \)
B. \( \frac{1}{2} \sqrt{\frac{L}{K}} \)
C. \( \sqrt{\frac{K}{L}} \)
D. \( \sqrt{\frac{L}{K}} \)
Question 11
A government has implemented a policy to increase the production of industrial products. If the policy is successful, what is the likely effect on the overall economic growth of the country?
A. An increase in economic growth
B. A decrease in economic growth
C. No change in economic growth
D. A decrease in economic growth
Question 12
A firm is considering investing in a new project. If the project has a high expected return but also a high level of risk, what is the likely effect on the firm's decision to invest?
A. The firm is likely to invest in the project
B. The firm is unlikely to invest in the project
C. The firm may invest in the project
D. The firm will definitely invest in the project
Question 13
A government has implemented a policy to increase the production of agricultural products. If the policy is successful, what is the likely effect on the overall economic growth of the country?
A. An increase in economic growth
B. A decrease in economic growth
C. No change in economic growth
D. A decrease in economic growth
Question 14
A firm's \cost function is given by C = 100 + 2L + 3K. If the firm's output is 100 units, and the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, what is the firm's total \cost?
A. ₦10,500
B. ₦11,000
C. ₦11,500
D. ₦12,000
Question 15
A country's balance of payments is given by the following equation: BOP = X - M. If the country's exports are ₦100 billion and imports are ₦80 billion, what is the country's balance of payments?
A. ₦20 billion surplus
B. ₦20 billion deficit
C. ₦10 billion surplus
D. ₦10 billion deficit

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