POST UTME DELSU 2020 Economics | Objective

Are you preparing for POST UTME DELSU exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2020 Economics (Objective) questions designed to simulate the real exam environment.

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Question 1
A firm's total revenue is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm sells 20 units, what is its total revenue?
A. ₦1,800
Correct B. ₦1,600
C. ₦1,400
D. ₦1,200

Correct Answer: B

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Question 2
A perfectly competitive firm's marginal revenue (MR) is given by the equation MR = 50 - 0.5x. If the firm's marginal \cost (MC) is 20, what is the profit-maximizing quantity of output?
A. 10 units
Correct B. 20 units
C. 30 units
D. 40 units

Correct Answer: B

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Question 3
A consumer's budget constraint is given by the equation 2x + 3y = 12, where x is the number of units of good X and y is the number of units of good Y. If the consumer's income is ₦12 and the price of good X is ₦2, what is the consumer's optimal bundle of goods?
Correct A. (2, 4)
B. (4, 2)
C. (6, 0)
D. (0, 6)

Correct Answer: A

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Question 4
A firm's demand curve is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the firm's marginal \cost is 10, what is the profit-maximizing price?
A. ₦20
Correct B. ₦30
C. ₦40
D. ₦50

Correct Answer: B

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Question 5
A firm's supply curve is given by the equation Qs = 2P - 10, where Qs is the quantity supplied and P is the price. If the firm's marginal revenue is 20, what is the profit-maximizing quantity of output?
A. 10 units
Correct B. 20 units
C. 30 units
D. 40 units

Correct Answer: B

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Question 6
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's current labor and capital inputs are 16 and 9 units respectively, what is the marginal product of labor (MPL) at this point?
A. 1
Correct B. 2
C. 3
D. 4

Correct Answer: B

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Question 7
A country's GDP is given by the equation Y = C + I + G + \( X - M \), where Y is GDP, C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's current GDP is ₦100 billion, consumption is ₦30 billion, investment is ₦20 billion, government sp\ending is ₦15 billion, exports are ₦25 billion, and imports are ₦10 billion, what is the marginal propensity to consume (MPC)?
Correct A. 0.3
B. 0.4
C. 0.5
D. 0.6

Correct Answer: A

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Question 8
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's current price is ₦20, what is the price elasticity of demand?
A. 0.5
Correct B. 1
C. 2
D. 3

Correct Answer: B

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Question 9
A country's supply function is given by Q = 2P + 10, where Q is quantity supplied and P is price. If the country's current price is ₦15, what is the quantity supplied?
A. 20
Correct B. 25
C. 30
D. 35

Correct Answer: B

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Question 10
A firm's production function is given by Q = 3L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's current labor and capital inputs are 25 and 16 units respectively, what is the marginal product of capital (MPC) at this point?
A. 1
B. 2
Correct C. 3
D. 4

Correct Answer: C

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Question 11
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market price is P = 10, and the inverse demand function is P = 100 - Q, where Q is the total quantity demanded, what is the marginal revenue (MR) function?
Correct A. 100 - 2Q
B. 100 - Q
C. 100 + Q
D. 100 - 2Q^2

Correct Answer: A

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Question 12
A monopolist faces a demand curve given by Q = 100 - 2P. The marginal revenue (MR) function is given by MR = 200 - 2Q. What is the price elasticity of demand (PED) at the point where Q = 20?
Correct A. 0.5
B. 1
C. 2
D. 4

Correct Answer: A

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Question 13
Consider a country with a GDP of ₦1,000,000,000 and a GNP of ₦1,200,000,000. What is the net factor income from abroad?
A. ₦200,000,000
Correct B. ₦300,000,000
C. ₦400,000,000
D. ₦500,000,000

Correct Answer: B

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Question 14
A consumer has the following utility function: U = 2x + 3y. The prices of x and y are ₦5 and ₦10 respectively. What is the consumer's budget constraint?
A. 2x + 3y = 50
Correct B. 2x + 3y = 100
C. 2x + 3y = 150
D. 2x + 3y = 200

Correct Answer: B

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Question 15
Consider a firm with a production function Q = 2L^2 + 3K. The prices of labor and capital are ₦10 and ₦20 respectively. What is the firm's \cost function?
Correct A. C = 20L + 40K
B. C = 10L + 20K
C. C = 5L + 10K
D. C = 2L + 4K

Correct Answer: A

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Question 16
Consider a firm operating in a perfectly competitive market. If the firm's marginal revenue (MR) curve intersects its marginal \cost (MC) curve at point E, where MR = MC, and the firm is producing at its optimal output level, what is the opportunity \cost of producing one more unit of the good?
A. The opportunity \cost is equal to the marginal revenue (MR) at point E.
Correct B. The opportunity \cost is equal to the marginal \cost (MC) at point E.
C. The opportunity \cost is equal to the price of the good.
D. The opportunity \cost is equal to the average revenue (AR) at point E.

Correct Answer: B

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Question 17
An economy is experiencing a recession. The government decides to implement a fiscal policy to stimulate the economy. Which of the following fiscal policy tools would be most effective in increa\sing aggregate demand?
A. Increa\sing government sp\ending on infrastructure projects.
Correct B. Reducing taxes to increase disposable income.
C. Implementing a monetary policy to increase the money supply.
D. Increa\sing government subsidies to bu\sinesses.

Correct Answer: B

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Question 18
A firm is considering investing in a new project. The project has a net present value (NPV) of ₦1,000,000. If the firm's \cost of capital is 10%, what is the present value of the expected future cash flows from the project?
Correct A. ₦1,000,000
B. ₦1,100,000
C. ₦1,200,000
D. ₦1,300,000

Correct Answer: A

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Question 19
A country's GDP is ₦1,500,000,000. The country's population is 20,000,000. What is the country's GDP per capita?
Correct A. ₦75
B. ₦75.00
C. ₦75.00
D. ₦75.00

Correct Answer: A

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Question 20
A firm is considering implementing a new pricing strategy. The firm's current price is ₦100 per unit. If the firm wants to increase its revenue by 20%, what should be the new price?
Correct A. ₦120
B. ₦120.00
C. ₦120.00
D. ₦120.00

Correct Answer: A

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Question 21
Consider a firm operating under cons\tant returns to scale. If the firm's production function is given by Q = 2L^2, where Q is output and L is labor, what is the marginal product of labor?
Correct A. 4L
B. 2L
C. L
D. 1

Correct Answer: A

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Question 22
A central bank increases the reserve requirement for commercial banks. What is the likely effect on the money supply?
A. Increase
Correct B. Decrease
C. No change
D. Uncertain

Correct Answer: B

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Question 23
Suppose the demand for a product is given by Qd = 100 - 2P and the supply is given by Qs = 2P - 10. What is the equilibrium price?
A. 5
Correct B. 10
C. 15
D. 20

Correct Answer: B

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Question 24
A firm's demand for labor is given by L = 100 - 2P, where P is the price of labor. If the price of labor increases by 10%, what is the new demand for labor?
A. 90
B. 95
C. 100
Correct D. 105

Correct Answer: D

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Question 25
Consider a production function Q = 2L^2, where Q is output and L is labor. If the marginal product of labor is 4L, what is the value of L?
A. 2
Correct B. 4
C. 6
D. 8

Correct Answer: B

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