POST UTME CALEB UNIVERSITY 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Determine the price elasticity of demand for a product whose price elasticity of supply is 0.5 and the cross-price elasticity of demand is 0.8.
A. 0.2
B. 0.5
C. 0.8
D. 1.2
Question 2
A country's agricultural sector is characterized by a high degree of monopolistic competition. The demand function for a particular crop is given by P = 100 - 2q. If the marginal \cost of production is ₦20, what is the profit-maximizing quantity of the crop?
A. 20
B. 30
C. 40
D. 50
Question 3
A country's balance of payments account shows a trade deficit of ₦100 billion and a current account deficit of ₦150 billion. What is the value of the capital account surplus?
A. ₦50 billion
B. ₦100 billion
C. ₦150 billion
D. ₦200 billion
Question 4
A firm is producing a good with the following production function: Q = 2L^0.5K^0.5. Find the returns to scale of the firm.
A. Increa\sing returns to scale
B. Decrea\sing returns to scale
C. Cons\tant returns to scale
D. No returns to scale
Question 5
A firm's supply function is given by Q = 50 + 2P. If the price elasticity of supply is 2, what is the price at which the quantity supplied is 120?
A. ₦30
B. ₦40
C. ₦50
D. ₦60
Question 6
A country's money supply is given by the equation \( M = 100 + 2Y \), where ( M ) is the money supply and ( Y ) is the level of economic activity. If the level of economic activity increases by 10%, what is the new money supply?
A. 110
B. 120
C. 130
D. 140
Question 7
A firm's total revenue (TR) is given by the equation TR = P × Q, where P is the price per unit and Q is the quantity sold. If the price per unit increases by 10% and the quantity sold increases by 20%, what is the percentage change in total revenue?
A. 10%
B. 20%
C. 30%
D. 40%
Question 8
A firm's production function is given by Q = 2L^0.5 * K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 10%
B. 12%
C. 15%
D. 18%
Question 9
A firm operating in a perfectly competitive market has a \cost function given by C(q) = 2q^2 + 10q. If the market price is P = 30, what is the profit-maximizing quantity of output?
A. 10
B. 20
C. 30
D. 40
Question 10
A firm's revenue function is given by R(q) = 20q^2 - 10q. If the firm's fixed \cost is ₦500, what is the total \cost of producing 50 units?
A. ₦1250
B. ₦1500
C. ₦1750
D. ₦2000
Question 11
A firm's demand function is given by Q = 100 - 2P. If the firm's marginal \cost is ₦10 per unit, what is the optimal price that maximizes the firm's profit?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 12
A country's GDP at market price is ₦1,500 billion, while its GDP at factor \cost is ₦1,400 billion. What is the value of the indirect tax (IT) in the country?
A. ₦100 billion
B. ₦50 billion
C. ₦75 billion
D. ₦25 billion
Question 13
A country's inflation rate is 5% per annum, and its interest rate is 10% per annum. If the country's money supply grows at an annual rate of 10%, what is the expected value of the real interest rate?
A. 5%
B. 10%
C. 15%
D. 20%
Question 14
A country's balance of payments is in equilibrium when the current account and capital account are equal. However, if the current account is in deficit, the capital account must be in surplus to maintain equilibrium. Which of the following is a correct statement regarding the balance of payments?
A. A current account deficit always leads to a capital account surplus.
B. A current account surplus always leads to a capital account deficit.
C. A capital account surplus always leads to a current account deficit.
D. A current account deficit always leads to a capital account deficit.
Question 15
A country's GDP grows at an annual rate of 5% while its population grows at an annual rate of 2.5%. Assuming the initial GDP per capita is ₦100,000, what is the GDP per capita after 5 years?
A. ₦125,937
B. ₦126,250
C. ₦127,563
D. ₦128,875

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