POST UTME EKSU 2020 Economics | Objective

Are you preparing for POST UTME EKSU 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 consumer's indifference curve is given by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, find the optimal bundle of x and y.
A. (100, 100)
Correct B. (200, 50)
C. (50, 200)
D. (0, 0)

Correct Answer: B

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Question 2
A country's GDP is ₦100 billion, its imports are ₦20 billion, and its exports are ₦30 billion. What is the balance of trade?
Correct A. ₦10 billion surplus
B. ₦10 billion deficit
C. ₦20 billion surplus
D. ₦20 billion deficit

Correct Answer: A

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Question 3
A firm has a \cost function ( C(q) = 2q^2 + 5q ) and a revenue function ( R(q) = 3q^2 + 2q ). Find the profit-maximizing quantity.
A. 10
B. 20
Correct C. 30
D. 40

Correct Answer: C

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Question 4
A consumer's utility function is given by ( u(x,y) = xy ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, find the optimal bundle of x and y.
A. (100, 100)
Correct B. (200, 50)
C. (50, 200)
D. (0, 0)

Correct Answer: B

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Question 5
A firm has a demand function \( p = 2 - q \) and a \cost function ( C(q) = 2q^2 + 5q ). Find the profit-maximizing quantity.
A. 10
B. 20
Correct C. 30
D. 40

Correct Answer: C

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Question 6
The demand for a commodity is said to be elastic if the percentage change in the quantity demanded is greater than the percentage change in the price. Which of the following is a characteristic of an elastic demand?
A. The demand curve is steeper
Correct B. The demand curve is flatter
C. The demand curve is vertical
D. The demand curve is horizontal

Correct Answer: B

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Question 7
A country's GDP is the sum of the value of all final goods and services produced within its borders. What is the formula for calculating a country's GDP?
Correct A. GDP = C + I + G + \( X - M \)
B. GDP = C + I + G + X
C. GDP = C + I + G + M
D. GDP = C + I + G + \( X + M \)

Correct Answer: A

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Question 8
A farmer has 100 hectares of land and can grow either wheat or maize. The revenue from wheat is ₦100,000 per hectare, while the revenue from maize is ₦80,000 per hectare. If the opportunity \cost of growing maize is ₦20,000 per hectare, what is the opportunity \cost of growing wheat?
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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Question 9
A country's GNP is the sum of its GDP and net factor income from abroad. What is the formula for calculating a country's GNP?
Correct A. GNP = GDP + \( X - M \)
B. GNP = GDP + \( X + M \)
C. GNP = GDP + \( X - I \)
D. GNP = GDP + \( X + I \)

Correct Answer: A

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Question 10
A firm's total revenue is given by the equation TR = 2x^2 + 10x. What is the marginal revenue function?
Correct A. 4x + 10
B. 2x + 5
C. x + 5
D. x - 5

Correct Answer: A

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Question 11
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 16 units when labor (L) is 4 units and capital (K) is 4 units, what is the marginal product of labor (MPL) when labor (L) is 4 units and capital (K) is 4 units?
Correct A. 2
B. 4
C. 8
D. 16

Correct Answer: A

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Question 12
A consumer's utility function is given by U = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of x and y?
Correct A. x = 20, y = 10
B. x = 10, y = 20
C. x = 15, y = 15
D. x = 25, y = 5

Correct Answer: A

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Question 13
A monopolist's demand function is given by Q = 100 - 2P. If the firm's marginal \cost is ₦20, what is the monopolist's optimal price?
A. ₦40
Correct B. ₦50
C. ₦60
D. ₦70

Correct Answer: B

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Question 14
A central bank increases the money supply in an economy by 10%. What is the expected effect on the price level?
Correct A. 10% increase
B. 5% increase
C. no change
D. 5% decrease

Correct Answer: A

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Question 15
A farmer in Nigeria decides to allocate 50% of his land to maize and 50% to yam. If the yield per hectare for maize is 5 tons and for yam is 3 tons, what is the total yield for the farmer?
A. 20 tons
B. 25 tons
Correct C. 30 tons
D. 35 tons

Correct Answer: C

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Question 16
The government of Nigeria has introduced a new tax policy aimed at increa\sing revenue from the agricultural sector. The policy requires farmers to pay a 10% tax on their total output. If a farmer produces 1000 bags of rice and each bag is sold at ₦5000, what is the total tax payable by the farmer?
A. ₦50000
Correct B. ₦500000
C. ₦5000000
D. ₦50000000

Correct Answer: B

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Question 17
A firm produces two products, A and B. The production process involves two inputs, labor and capital. The production function for product A is given by Q_A = 2L^0.5K^0.5, where Q_A is the quantity of product A produced, L is the amount of labor used, and K is the amount of capital used. The production function for product B is given by Q_B = 3L^0.2K^0.8, where Q_B is the quantity of product B produced. If the firm uses 100 units of labor and 200 units of capital, what is the total output of the firm?
A. 100
B. 200
Correct C. 300
D. 400

Correct Answer: C

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Question 18
The balance of payments (BOP) accounts for a country are given below. The current account balance is ₦100 billion, the capital account balance is ₦50 billion, and the financial account balance is ₦200 billion. What is the overall balance of payments balance?
A. ₦150 billion
Correct B. ₦200 billion
C. ₦250 billion
D. ₦300 billion

Correct Answer: B

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Question 19
A firm has the following \cost and revenue functions: C(Q) = 2Q^2 + 10Q + 100 and R(Q) = 3Q^2 - 5Q + 50. What is the profit-maximizing quantity of output?
A. 5
Correct B. 10
C. 15
D. 20

Correct Answer: B

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Question 20
The National Bureau of Statistics (NBS) has released the following data on the Gross Domestic Product (GDP) of Nigeria for the past five years: 2015: ₦12.5 trillion, 2016: ₦13.2 trillion, 2017: ₦14.1 trillion, 2018: ₦15.3 trillion, 2019: ₦16.5 trillion. What is the average annual growth rate of the GDP?
A. 5%
B. 6%
Correct C. 7%
D. 8%

Correct Answer: C

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Question 21
The Central Bank of Nigeria (CBN) uses the monetary policy instrument of Open Market Operations (OMO) to increase the money supply in the economy. What is the effect of OMO on the money supply?
Correct A. Increase the money supply
B. Decrease the money supply
C. Have no effect on the money supply
D. Increase the interest rate

Correct Answer: A

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Question 22
A consumer's indifference curve is given by the equation u(x, y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
Correct A. x = 100, y = 50
B. x = 50, y = 100
C. x = 200, y = 0
D. x = 0, y = 200

Correct Answer: A

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Question 23
The government of Nigeria imposes a tax on imported goods to raise revenue. What is the effect of this tax on the quantity of imported goods demanded?
A. Increase the quantity of imported goods demanded
Correct B. Decrease the quantity of imported goods demanded
C. Have no effect on the quantity of imported goods demanded
D. Increase the price of imported goods

Correct Answer: B

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Question 24
A firm's production function is given by Q = 2L^0.5 + 3K^0.5. If the firm's input prices are ₦10 per unit of labor and ₦20 per unit of capital, what is the firm's optimal input bundle?
Correct A. L = 100, K = 50
B. L = 50, K = 100
C. L = 200, K = 0
D. L = 0, K = 200

Correct Answer: A

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Question 25
The government of Nigeria imposes a tariff on imported goods to protect domestic industries. What is the effect of this tariff on the domestic industry?
Correct A. Increase the production of domestic goods
B. Decrease the production of domestic goods
C. Have no effect on the production of domestic goods
D. Increase the price of domestic goods

Correct Answer: A

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