POST UTME DELSU 2023 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 2023 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A firm is operating under cons\tant returns to scale. If it increases its output by 20%, what will be the percentage change in its total \cost?
Correct A. 10%
B. 20%
C. 30%
D. 40%

Correct Answer: A

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Question 2
A monopolist faces a demand curve given by Q = 100 - 2P. If the firm's marginal revenue (MR) is given by MR = 200 - 2Q, what is the optimal price and quantity?
A. P = 50, Q = 25
Correct B. P = 75, Q = 12.5
C. P = 100, Q = 0
D. P = 0, Q = 100

Correct Answer: B

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Question 3
A consumer has an income of ₦10,000 and faces a budget constraint given by P1x + P2y = 10,000. If the prices of goods 1 and 2 are ₦200 and ₦300 respectively, and the consumer's indifference curve is given by U = 2x + 3y, what is the optimal bundle of goods?
Correct A. x = 20, y = 30
B. x = 30, y = 20
C. x = 40, y = 10
D. x = 10, y = 40

Correct Answer: A

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Question 4
A firm faces a demand curve given by Q = 100 - 2P and a supply curve given by Q = 2P. If the firm's marginal revenue (MR) is given by MR = 200 - 2Q, what is the equilibrium price and quantity?
Correct A. P = 50, Q = 25
B. P = 75, Q = 12.5
C. P = 100, Q = 0
D. P = 0, Q = 100

Correct Answer: A

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Question 5
A consumer faces a budget constraint given by P1x + P2y = 10,000. If the prices of goods 1 and 2 are ₦200 and ₦300 respectively, and the consumer's indifference curve is given by U = 2x + 3y, what is the optimal bundle of goods?
Correct A. x = 20, y = 30
B. x = 30, y = 20
C. x = 40, y = 10
D. x = 10, y = 40

Correct Answer: A

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Question 6
Consider a consumer with a utility function U(x,y) = 2x + 3y - x^2 - y^2. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle of x and y?
Correct A. (10, 10)
B. (20, 5)
C. (15, 15)
D. (5, 20)

Correct Answer: A

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Question 7
A firm produces two goods, x and y, u\sing two inputs, labor (L) and capital (K). The production function is given by x = 2L^0.5K^0.5 and y = 3L^0.5K^0.5. If the firm has 100 units of labor and 50 units of capital, what is the maximum output of good x?
A. 200
B. 250
Correct C. 300
D. 350

Correct Answer: C

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Question 8
A country's GDP is ₦10 trillion, its GNP is ₦12 trillion, and its net factor income from abroad is ₦2 trillion. What is the country's national income?
A. ₦14 trillion
B. ₦16 trillion
Correct C. ₦18 trillion
D. ₦20 trillion

Correct Answer: C

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Question 9
A firm's demand function for a good is given by Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the firm's supply function is given by Qs = 2P - 100, what is the equilibrium price and quantity?
A. (50, 150)
Correct B. (100, 200)
C. (150, 250)
D. (200, 300)

Correct Answer: B

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Question 10
A central bank increases the money supply in an economy by buying government bonds from commercial banks. What is the effect on the money multiplier?
Correct A. Increases
B. Decreases
C. Remains the same
D. Cannot be determined

Correct Answer: A

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Question 11
The government of Nigeria has introduced a new tax policy aimed at increa\sing revenue from the manufacturing sector. The policy requires companies to pay a tax rate of 15% on their profits. However, the tax rate will be reduced to 10% if the company invests in research and development. If a company's profit is ₦1,000,000 and it invests ₦200,000 in research and development, what is the total tax liability?
A. ₦150,000
Correct B. ₦120,000
C. ₦180,000
D. ₦100,000

Correct Answer: B

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Question 12
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?
A. ₦50
B. ₦75
Correct C. ₦100
D. ₦125

Correct Answer: C

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Question 13
The government of Nigeria has introduced a new policy aimed at increa\sing agricultural production. The policy includes the provision of fertilizers and seeds to farmers at a subsidized rate. If the government sp\ends ₦100,000 on fertilizers and seeds, and the price of fertilizers and seeds is reduced by 20%, what is the percentage increase in agricultural production?
A. 10%
B. 15%
Correct C. 20%
D. 25%

Correct Answer: C

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Question 14
The National Bureau of Statistics (NBS) has reported that the Gross Domestic Product (GDP) of Nigeria has increased by 3% in the last quarter. If the GDP was ₦10,000,000 in the previous quarter, what is the GDP in the current quarter?
A. ₦10,300,000
B. ₦10,500,000
Correct C. ₦10,700,000
D. ₦10,900,000

Correct Answer: C

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Question 15
The government of Nigeria has introduced a new policy aimed at increa\sing industrial production. The policy includes the provision of loans to industries at a subsidized rate. If the government sp\ends ₦500,000 on loans and the price of loans is reduced by 30%, what is the percentage increase in industrial production?
A. 15%
B. 20%
Correct C. 25%
D. 30%

Correct Answer: C

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Question 16
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal revenue (MR) is given by MR = 200 - 2Q. Find the profit-maximizing price and quantity.
A. ₦200
Correct B. ₦250
C. ₦300
D. ₦350

Correct Answer: B

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Question 17
A consumer's utility function is given by U(x,y) = 2x + 3y. The consumer's budget constraint is given by 2x + 3y = 10. Find the consumer's optimal bundle of x and y.
Correct A. (2,2)
B. (3,1)
C. (4,0)
D. (5,0)

Correct Answer: A

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Question 18
A firm's demand curve is given by Q = 100 - 2P. The firm's marginal \cost (MC) is given by MC = 5 + 2Q. Find the profit-maximizing quantity and price.
A. ₦200
B. ₦250
Correct C. ₦300
D. ₦350

Correct Answer: C

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Question 19
A consumer's demand curve for a good is given by Q = 100 - 2P. The consumer's income is ₦1000. Find the consumer's optimal quantity and price.
A. ₦200
Correct B. ₦250
C. ₦300
D. ₦350

Correct Answer: B

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Question 20
A firm's supply curve is given by Q = 2P + 10. The firm's marginal revenue (MR) is given by MR = 200 - 2Q. Find the profit-maximizing quantity and price.
A. ₦200
B. ₦250
Correct C. ₦300
D. ₦350

Correct Answer: C

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Question 21
A firm's demand for raw materials is given by the equation Q = 100 - 2P, where Q 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. 10%
C. 5%
D. 15%

Correct Answer: A

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Question 22
A country's GDP is 100 billion naira. Its GNP is 120 billion naira. What is the net factor income from abroad?
A. 20 billion naira
Correct B. 15 billion naira
C. 10 billion naira
D. 5 billion naira

Correct Answer: B

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Question 23
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is 100 naira and the prices of the two goods are 5 naira and 10 naira respectively, what is the consumer's optimal bundle?
A. x = 10, y = 20
B. x = 20, y = 10
Correct C. x = 15, y = 15
D. x = 5, y = 5

Correct Answer: C

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Question 24
A government imposes a tax of 10% on a good. If the demand for the good is given by Q = 100 - 2P and the price elasticity of demand is -2, what is the effect on the government's revenue?
Correct A. Increase by 20%
B. Decrease by 10%
C. Increase by 10%
D. Decrease by 20%

Correct Answer: A

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Question 25
A firm's production function is given by Q = 2L + 3K, where Q is the output, L is the labor and K is the capital. If the firm's output is 100 units and the price of labor is 10 naira per unit and the price of capital is 20 naira per unit, what is the firm's optimal input mix?
A. L = 20, K = 30
B. L = 30, K = 20
Correct C. L = 25, K = 25
D. L = 10, K = 10

Correct Answer: C

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