POST UTME DELSU 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A perfectly competitive market is characterized by a large number of firms producing a homogeneous product, and each firm has complete knowledge of market conditions. Which of the following is a consequence of this market structure?
A. Each firm produces at the minimum point of its average total \cost curve.
B. Each firm produces at the point where its marginal revenue equals its marginal \cost.
C. Each firm produces at the point where its average revenue equals its average \cost.
D. Each firm produces at the point where its marginal revenue equals its average \cost.
Question 2
A monopolist faces a demand curve given by Q = 100 - 2P. If the marginal \cost is cons\tant at 10, what is the profit-maximizing price and quantity?
A. P = 40, Q = 30
B. P = 50, Q = 25
C. P = 60, Q = 20
D. P = 70, Q = 15
Question 3
A central bank wants to implement a monetary policy to reduce inflation. Which of the following instruments can it use?
A. Open market operations
B. Reserve requirements
C. Discount rate
D. All of the above
Question 4
Consider a country with a GDP of ₦10 trillion and a GNP of ₦11 trillion. If the country's population is 200 million, calculate the per capita GDP and GNP.
A. ₦50,000
B. ₦55,000
C. ₦60,000
D. ₦65,000
Question 5
A firm's \cost function is given by C = 50 + 10Q, where C is the \cost and Q is the quantity produced. If the firm produces 20 units, what is its \cost?
A. ₦150
B. ₦250
C. ₦350
D. ₦450
Question 6
A central bank uses open market operations to increase the money supply in the economy. What is the effect of this action on the interest rate?
A. The interest rate increases.
B. The interest rate decreases.
C. The interest rate remains unchanged.
D. The interest rate becomes zero.
Question 7
A country's GDP is ₦500 billion, and its GNP is ₦550 billion. What is the country's net factor income from abroad?
A. ₦50 billion
B. ₦100 billion
C. ₦150 billion
D. ₦200 billion
Question 8
A country's balance of payments account shows a trade deficit of ₦500 billion. If the country's GDP is ₦10 trillion, calculate the trade deficit as a percentage of GDP.
A. 5%
B. 10%
C. 15%
D. 20%
Question 9
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 0.5, what is the percentage change in quantity demanded when the price increases by 10%?
A. 5%
B. 10%
C. 15%
D. 20%
Question 10
A farmer in Nigeria has 100 hectares of land to plant maize. The price of maize is ₦200 per ki\logram, and the \cost of planting and harvesting is ₦100,000. If the yield per hectare is 10,000 ki\lograms, what is the maximum amount the farmer can afford to pay for the land?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 11
A consumer has a budget of ₦500 and faces a price of ₦100 for a product. If the consumer's indifference curves are given by U = x + 2y, where x and y are the quantities of the two products, find the consumer's optimal bundle.
A. x = 2, y = 1
B. x = 1, y = 2
C. x = 3, y = 0
D. x = 0, y = 3
Question 12
A government is considering a policy to reduce the budget deficit. The current budget deficit is ₦100 billion, and the government wants to reduce it by 20% in the next fiscal year. If the current tax revenue is ₦200 billion, what is the new tax rate needed to achieve the desired reduction in the budget deficit?
A. 20%
B. 25%
C. 30%
D. 35%
Question 13
A firm is considering a new product that will require an investment of ₦20 million. The firm expects to sell 500 units of the product at a price of ₦40 each. If the firm's \cost of production is ₦15 per unit, what is the profit-maximizing quantity?
A. 200 units
B. 300 units
C. 400 units
D. 500 units
Question 14
The Central Bank of Nigeria (CBN) uses monetary policy tools to regulate the money supply in the economy. Which of the following tools is NOT a monetary policy tool?
A. Fiscal policy
B. Open market operations
C. Reserve requirements
D. Taxation
Question 15
A firm's supply function is given by Q = 2P + 50. If the market price is ₦20, calculate the quantity supplied.
A. 70
B. 80
C. 90
D. 100

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