POST UTME CHRISTOPHER UNIVERSITY 2022 Economics | Objective

Are you preparing for POST UTME CHRISTOPHER UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2022 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's indifference curves are convex to the origin. What does this imply about the consumer's preferences?
Correct A. The consumer is risk-averse.
B. The consumer is risk-loving.
C. The consumer is indifferent to risk.
D. The consumer is uncertain about risk.

Correct Answer: A

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Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current inputs are L = 4 and K = 9, what is the marginal product of labor?
A. 1.5
Correct B. 2.5
C. 3.5
D. 4.5

Correct Answer: B

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Question 3
A country's GDP is given by the equation Y = C + I + G + \( X - M \). If the country's current values are C = 100, I = 200, G = 300, X = 400, and M = 200, what is the country's GDP?
A. 1000
B. 1200
Correct C. 1400
D. 1600

Correct Answer: C

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Question 4
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is P = 20, what is the firm's quantity demanded?
A. 40
B. 60
C. 80
Correct D. 100

Correct Answer: D

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Question 5
A country's inflation rate is given by the equation π = \( P - P* \) / P*, where P is the current price level and P* is the base price level. If the country's current price level is P = 100 and the base price level is P* = 80, what is the country's inflation rate?
A. 0.25
Correct B. 0.5
C. 0.75
D. 1

Correct Answer: B

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Question 6
An economy is characterized by scarcity, which implies that the opportunity \cost of any action is the value of the next best alternative foregone. If a farmer allocates 100 hectares of land to grow maize, and the opportunity \cost of growing maize is ₦10,000 per hectare, what is the total opportunity \cost of growing maize on 100 hectares of land?
Correct A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000

Correct Answer: A

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Question 7
A government imposes a tax on a particular good to reduce its consumption. If the tax is ₦5 per unit, and the demand for the good is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price, what is the new equilibrium price of the good?
A. ₦45
B. ₦50
Correct C. ₦55
D. ₦60

Correct Answer: C

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Question 8
A firm is considering two alternative production processes to produce a particular good. Process A requires an initial investment of ₦1,000,000 and has a fixed \cost of ₦200,000 per year. Process B requires an initial investment of ₦500,000 and has a fixed \cost of ₦300,000 per year. If the variable \cost of production is ₦100 per unit, and the firm produces 10,000 units per year, which process is more profitable?
Correct A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable

Correct Answer: A

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Question 9
A consumer has a budget of ₦10,000 per month and a utility function given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are ₦2 and ₦3 per unit respectively, and the consumer allocates ₦4,000 to good x, how much should be allocated to good y?
A. ₦1,000
Correct B. ₦2,000
C. ₦3,000
D. ₦4,000

Correct Answer: B

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Question 10
A government is considering a policy to increase agricultural production in a particular region. The policy involves providing subsidies to farmers to purchase inputs such as fertilizers and seeds. If the subsidy is ₦5,000 per hectare, and the average yield per hectare is 5 tons, what is the total subsidy provided to farmers who cultivate 100 hectares of land?
A. ₦500,000
B. ₦750,000
C. ₦1,000,000
Correct D. ₦1,250,000

Correct Answer: D

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Question 11
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity \cost. Which of the following is a correct example of comparative advantage?
A. Nigeria producing cotton and importing textiles
Correct B. Nigeria producing textiles and importing cotton
C. Nigeria producing both cotton and textiles
D. Nigeria importing both cotton and textiles

Correct Answer: B

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Question 12
Agricultural development in Nigeria is hindered by the lack of access to credit facilities for farmers. Which of the following is a potential solution to this problem?
Correct A. Establishing a national agricultural bank
B. Providing subsidies to farmers
C. Implementing a cash crop policy
D. Encouraging foreign investment in agriculture

Correct Answer: A

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Question 13
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the product is given by the equation Qs = 2P - 100, where Qs is the quantity supplied and P is the price. What is the equilibrium price and quantity?
A. P = 50, Q = 50
Correct B. P = 75, Q = 75
C. P = 100, Q = 100
D. P = 150, Q = 150

Correct Answer: B

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Question 14
The government of Nigeria is considering a policy to increase the production of rice. Which of the following is a potential benefit of this policy?
A. Increased employment opportunities
Correct B. Increased foreign exchange earnings
C. Increased government revenue
D. Increased poverty reduction

Correct Answer: B

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Question 15
The national income of Nigeria is given by the equation Y = C + I + G, where Y is the national income, C is the consumption, I is the investment, and G is the government exp\enditure. If the consumption is 100, the investment is 50, and the government exp\enditure is 75, what is the national income?
A. ₦225
B. ₦250
Correct C. ₦275
D. ₦300

Correct Answer: C

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Question 16
Consider a firm operating in a perfectly competitive market with a given production function Q = 2L^0.5K^0.5. If the price of the firm's output is P = 10, and the wage rate is W = 5, calculate the optimal level of labor (L) that maximizes the firm's profit.
A. 4
B. 8
Correct C. 16
D. 32

Correct Answer: C

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Question 17
A country's balance of payments (BOP) is given by the following equation: BOP = X - M, where X is the value of exports and M is the value of imports. If the country's exports are valued at ₦150 billion and its imports are valued at ₦200 billion, what is the balance of payments?
Correct A. ₦50 billion
B. ₦100 billion
C. ₦150 billion
D. ₦200 billion

Correct Answer: A

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Question 18
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's income is ₦100 and the prices of the two goods are ₦5 and ₦10 respectively, what is the optimal combination of x and y that maximizes the consumer's utility?
Correct A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 20, y = 2

Correct Answer: A

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Question 19
A firm's production function is given by Q = 3L^0.5K^0.5, where L and K are the quantities of labor and capital respectively. If the firm's output is 100 units, and the price of the output is ₦10, calculate the optimal level of labor (L) that minimizes the firm's \cost.
A. 4
B. 8
Correct C. 16
D. 32

Correct Answer: C

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Question 20
A country's inflation rate is given by the following equation: inflation rate = \( P - P0 \)/P0, where P is the current price level and P0 is the base price level. If the current price level is ₦100 and the base price level is ₦90, what is the inflation rate?
Correct A. 0.11
B. 0.22
C. 0.33
D. 0.44

Correct Answer: A

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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 price elasticity of demand is -2, what is the percentage change in quantity demanded when the price increases by 10%?
Correct A. 20%
B. 30%
C. 40%
D. 50%

Correct Answer: A

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Question 22
A firm produces two goods, X and Y, u\sing two inputs, labor and capital. The production function for good X is given by QX = 2L^0.5K^0.5, where QX is the quantity of good X produced, L is the amount of labor used, and K is the amount of capital used. If the firm wants to produce 100 units of good X, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, what is the minimum \cost of producing 100 units of good X?
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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Question 23
A consumer has the following utility function: U = 2X + 3Y, where X and Y are the quantities of two goods consumed. The prices of the two goods are ₦50 and ₦75, respectively. If the consumer's income is ₦1,500, what is the optimal bundle of goods that the consumer will choose?
Correct A. X = 10, Y = 5
B. X = 15, Y = 3
C. X = 20, Y = 2
D. X = 25, Y = 1

Correct Answer: A

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Question 24
A firm is producing a good at a level where the marginal revenue product of labor is ₦100 per unit, and the wage rate is ₦150 per unit. If the firm wants to increase its output by 10%, what is the minimum amount of labor it needs to hire?
A. 5 units
Correct B. 10 units
C. 15 units
D. 20 units

Correct Answer: B

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Question 25
A country's GDP is ₦1,500 billion, and its GNP is ₦1,600 billion. What is the country's net factor income from abroad?
A. ₦100 billion
Correct B. ₦200 billion
C. ₦300 billion
D. ₦400 billion

Correct Answer: B

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