Practice post utme christopher university economics 2025 Past Questions

Question 1

Consider a firm with a production function Q = 3L^0.5K^0.5. If the price of the good is P = 15, and the wage rate is W = 10, calculate the optimal level of labor $ L* $ u\sing the first-order condition for profit maximization.

A. $ L^* = 9 $

B. $ L^* = 36 $

C. $ L^* = 144 $

D. $ L^* = 576 $

Question 2

The demand for a commodity 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 0.5, find the price at which the quantity demanded is 60 units.

A. ₦50

B. ₦75

C. ₦100

D. ₦125

Question 3

Consider a market with the following supply and demand functions: Qs = 100 + 2P, Qd = 200 - 3P. If the market is in equilibrium, what is the equilibrium price?

A. $20

B. $30

C. $40

D. $50

Question 4

A consumer has the following utility function: U(x,y) = x^2 + 2y. If the prices of x and y are P_x = 5 and P_y = 3, respectively, and the consumer's income is I = 150, calculate the optimal quantities of x and y u\sing the budget constraint.

A. $ x^* = 15, y^* = 10 $

B. $ x^* = 10, y^* = 15 $

C. $ x^* = 20, y^* = 5 $

D. $ x^* = 25, y^* = 2 $

Question 5

A perfectly competitive market is characterized by a large number of firms producing a homogeneous product, each firm having complete knowledge of market conditions, and the ability to enter or exit the market freely. What is the primary implication of this market structure on the behavior of firms?

A. Firms will produce at the minimum point of their average total \cost curve.

B. Firms will produce at the point where their marginal revenue equals their marginal \cost.

C. Firms will produce at the point where their average revenue equals their average \cost.

D. Firms will produce at the point where their total revenue equals their total \cost.

Question 6

Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the price of the good is P = 10, and the wage rate is W = 5, calculate the optimal level of labor $ L* $ u\sing the first-order condition for profit maximization.

A. $ L^* = 4 $

B. $ L^* = 16 $

C. $ L^* = 64 $

D. $ L^* = 256 $

Question 7

A country's national income is measured by its gross domestic product (GDP). What is the primary difference between GDP and gross national product (GNP)?

A. GDP includes income earned by foreign residents, while GNP excludes income earned by domestic residents.

B. GDP excludes income earned by foreign residents, while GNP includes income earned by domestic residents.

C. GDP includes income earned by domestic residents, while GNP excludes income earned by foreign residents.

D. GDP excludes income earned by domestic residents, while GNP includes income earned by foreign residents.

Question 8

An increase in the price of a commodity leads to a decrease in its demand. If the demand for the commodity is elastic, what will be the effect on the total revenue of the firm?

A. Total revenue will increase

B. Total revenue will decrease

C. Total revenue will remain the same

D. Total revenue will increase at a decrea\sing rate

Question 9

A firm's production function is given by F(K, L) = 10K^0.5L^0.5. If the firm has 100 units of capital and 50 units of labor, find the returns to scale.

A. Increa\sing returns to scale

B. Decrea\sing returns to scale

C. Cons\tant returns to scale

D. No returns to scale

Question 10

The government of Nigeria has introduced a new policy aimed at reducing the country's dep\endence on imported goods. The policy involves providing incentives to local manufacturers to produce goods that were previously imported. What is the likely effect of this policy on the country's balance of payments?

A. An improvement in the trade deficit

B. A worsening of the trade deficit

C. No change in the trade deficit

D. An improvement in the trade surplus

Question 11

Consider a small open economy with a trade balance of -$100 million. If the exchange rate is 1 USD = 120 NGN, and the price of a barrel of crude oil is $50, what is the value of the trade balance in NGN?

A. -12,000,000 NGN

B. -10,000,000 NGN

C. -15,000,000 NGN

D. -8,000,000 NGN

Question 12

Consider a firm with a production function Q = 2L^0.5K^0.5. If the price of the good is P = 20, and the wage rate is W = 15, calculate the optimal level of labor $ L* $ u\sing the first-order condition for profit maximization.

A. $ L^* = 16 $

B. $ L^* = 64 $

C. $ L^* = 256 $

D. $ L^* = 1024 $

Question 13

A firm is considering investing in a new project with the following cash flows: Year 1: -$100,000, Year 2: $50,000, Year 3: $75,000. If the firm's \cost of capital is 10%, what is the internal rate of return (IRR) of the project?

A. 10%

B. 12%

C. 15%

D. 18%

Question 14

The demand for a commodity 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 0.5, find the price at which the quantity demanded is 60 units.

A. ₦50

B. ₦75

C. ₦100

D. ₦125

Question 15

The demand for a commodity 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 0.5, find the price at which the quantity demanded is 60 units.

A. ₦50

B. ₦75

C. ₦100

D. ₦125

POST UTME CHRISTOPHER UNIVERSITY 2025 Economics | Objective

Master the Exam!

Help others prepare! Share this practice hub: