POST UTME COAL CITY UNIVERSITY 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's inflation rate is given by the following equation: inflation rate = \( P2 - P1 \) / P1, where P1 is the previous year's price level and P2 is the current year's price level. If the price level increases from ₦100 to ₦120, what is the inflation rate?
A. 10%
B. 20%
C. 30%
D. 40%
Question 2
A government is considering a tax on a particular good. The supply and demand curves for the good are given by Qs = 100 - 2P and Qd = 150 + 3P, respectively. If the government imposes a tax of ₦10 per unit on the good, what is the new equilibrium price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 3
A country's GDP is ₦10 trillion, and its government exp\enditure is ₦2 trillion. If the country's savings rate is 20%, what is the private sector's consumption?
A. ₦4 trillion
B. ₦5 trillion
C. ₦6 trillion
D. ₦7 trillion
Question 4
Agricultural subsidies in Nigeria have been criticized for their impact on the country's industrialization efforts. Which of the following is a likely consequence of these subsidies?
A. Increased production \costs for farmers
B. Reduced prices of agricultural products
C. Increased demand for industrial goods
D. Decreased investment in agricultural research
Question 5
A firm's \cost function is given by CA = 2x + 3y. If the firm produces 10 units of good A and 15 units of good B, what is the total \cost of production?
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 6
A firm's marginal revenue function is given by MR = 100 - 2Q. What is the price elasticity of demand?
A. Price elasticity of demand is greater than 1
B. Price elasticity of demand is less than 1
C. Price elasticity of demand is equal to 1
D. Price elasticity of demand is undefined
Question 7
A firm is considering investing in a new project with a payback period of 5 years. If the firm's \cost of capital is 10% per annum, what is the internal rate of return (IRR) of the project?
A. 10%
B. 12%
C. 15%
D. 18%
Question 8
The Marshall-Lerner condition states that if the sum of the elasticities of demand for imports and exports is greater than 1, then a devaluation of the currency will lead to an improvement in the balance of payments. What is the implication of this condition on the optimal level of devaluation?
A. Devaluation will lead to a significant improvement in the balance of payments.
B. Devaluation will lead to a small improvement in the balance of payments.
C. Devaluation will lead to a worsening of the balance of payments.
D. The Marshall-Lerner condition is irrelevant to the optimal level of devaluation.
Question 9
A firm operating in a perfectly competitive market is characterized by which of the following?
A. Monopolistic competition
B. Perfect competition
C. Monopoly
D. Oligopoly
Question 10
A country's economic growth is measured by its GDP per capita. Which of the following statements is true about GDP per capita?
A. GDP per capita is a measure of a country's economic growth
B. GDP per capita is a measure of a country's economic development
C. GDP per capita is a measure of a country's economic stability
D. GDP per capita is a measure of a country's economic inequality
Question 11
A country's economic growth is measured by its GDP per capita. Which of the following statements is true about GDP per capita?
A. GDP per capita is a measure of a country's economic growth
B. GDP per capita is a measure of a country's economic development
C. GDP per capita is a measure of a country's economic stability
D. GDP per capita is a measure of a country's economic inequality
Question 12
A country's GDP is calculated as the sum of the value of all final goods and services produced within the country. If the GDP is ₦1,500,000 and the country's population is 20 million, what is the GDP per capita?
A. ₦75
B. ₦150
C. ₦300
D. ₦600
Question 13
A consumer's indifference curve is a graphical representation of the trade-offs between two goods. Which of the following statements is true about indifference curves?
A. Indifference curves are downward-sloping and convex
B. Indifference curves are upward-sloping and concave
C. Indifference curves are downward-sloping and concave
D. Indifference curves are upward-sloping and convex
Question 14
A firm's \cost function is given by C = 100 + 2Q + 3Q^2, where C is the total \cost and Q is the quantity produced. If the firm produces 10 units, what is the total \cost?
A. ₦1300
B. ₦1500
C. ₦1700
D. ₦1900
Question 15
Consider a country with a trade deficit of ₦500 billion and a current account deficit of ₦300 billion. If the country's exchange rate is ₦200 per dollar, what is the value of the trade deficit in dollars?
A. $2.5 billion
B. $3.75 billion
C. $5 billion
D. $7.5 billion

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