POST UTME EKSU 2025 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 2025 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
The concept of scarcity in economics implies that the production of one good is limited by the availability of resources, which can be used to produce other goods. This leads to a trade-off between the production of different goods. What is the opportunity \cost of producing more of a particular good?
Correct A. The value of the next best alternative good that could have been produced with the same resources.
B. The \cost of producing the next best alternative good.
C. The difference between the actual output and the potential output.
D. The value of the resources used to produce the good.

Correct Answer: A

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Question 2
A farmer in Nigeria has 100 hectares of land to cultivate maize and sorghum. The marginal product of maize is 20 tons per hectare, while the marginal product of sorghum is 15 tons per hectare. If the farmer wants to maximize profit, how many hectares should he allocate to maize?
A. 50
Correct B. 60
C. 70
D. 80

Correct Answer: B

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Question 3
The Nigerian government has implemented a policy to increase the production of rice. The policy includes subsidies for fertilizer and irrigation. What is the likely effect of this policy on the supply of rice?
A. The supply of rice will decrease.
Correct B. The supply of rice will increase.
C. The supply of rice will remain unchanged.
D. The supply of rice will fluctuate.

Correct Answer: B

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Question 4
A consumer has a budget of ₦1000 to sp\end on two goods, X and Y. The price of good X is ₦200, and the price of good Y is ₦300. If the consumer wants to maximize utility, how much should he sp\end on good X?
A. ₦400
Correct B. ₦500
C. ₦600
D. ₦700

Correct Answer: B

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Question 5
The Nigerian economy is experiencing a recession. The government has implemented a fiscal policy to stimulate economic growth. What is the likely effect of this policy on the aggregate demand curve?
A. The aggregate demand curve will shift to the left.
Correct B. The aggregate demand curve will shift to the right.
C. The aggregate demand curve will remain unchanged.
D. The aggregate demand curve will fluctuate.

Correct Answer: B

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

Correct Answer: B

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Question 7
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 10x + 5y = 50, what is the consumer's optimal bundle of goods?
Correct A. x = 2, y = 4
B. x = 4, y = 2
C. x = 5, y = 3
D. x = 3, y = 5

Correct Answer: A

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Question 8
A firm's \cost function is given by C = 2L + 3K, where C is \cost, L is labor and K is capital. If the firm's current labor and capital inputs are 4 and 6 respectively, what is the firm's total \cost?
A. 20
B. 30
Correct C. 40
D. 50

Correct Answer: C

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Question 9
A country's GDP is given by GDP = C + I + G + \( X - M \), where 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, consumption is 30, investment is 20, government sp\ending is 15, exports are 25 and imports are 10, what is the country's net exports?
A. 5
B. 10
C. 15
Correct D. 20

Correct Answer: D

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Question 10
A firm's production function is given by Q = 3L^2K, where Q is output, L is labor and K is capital. If the firm's current labor and capital inputs are 2 and 3 respectively, what is the firm's total output?
A. 12
B. 18
Correct C. 24
D. 30

Correct Answer: C

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Question 11
Suppose a monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. What is the profit-maximizing quantity?
A. 50
Correct B. 75
C. 100
D. 125

Correct Answer: B

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Question 12
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, what is the \cost-minimizing combination of labor and capital?
A. L = 4, K = 4
Correct B. L = 2, K = 8
C. L = 8, K = 2
D. L = 16, K = 16

Correct Answer: B

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Question 13
A government imposes a tax of ₦10 per unit on a firm's output. The firm's supply curve is given by Q = 100 - 2P. What is the new supply curve after the tax?
Correct A. Q = 100 - 4P
B. Q = 100 - 2P
C. Q = 100 - 6P
D. Q = 100 - 8P

Correct Answer: A

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Question 14
A firm's revenue function is given by R(P) = 100P - 2P^2. If the firm's \cost function is C(Q) = 2Q^2 + 10Q, what is the profit-maximizing price?
A. ₦20
B. ₦30
Correct C. ₦40
D. ₦50

Correct Answer: C

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Question 15
A government imposes a tax of ₦5 per unit on a firm's output. The firm's supply curve is given by Q = 100 - 2P. What is the new supply curve after the tax?
A. Q = 100 - 4P
Correct B. Q = 100 - 2P
C. Q = 100 - 6P
D. Q = 100 - 8P

Correct Answer: B

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Question 16
An increase in the price of a commodity will lead to a decrease in its demand, but the magnitude of the decrease dep\ends on the price elasticity of demand. If the price elasticity of demand is greater than 1, the decrease in demand will be greater than the percentage increase in price. Which of the following statements is correct?
A. The price elasticity of demand is greater than 1 when the percentage increase in price is greater than the percentage decrease in demand.
Correct B. The price elasticity of demand is greater than 1 when the percentage increase in price is less than the percentage decrease in demand.
C. The price elasticity of demand is greater than 1 when the percentage increase in price is equal to the percentage decrease in demand.
D. The price elasticity of demand is greater than 1 when the percentage increase in price is greater than the percentage increase in demand.

Correct Answer: B

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Question 17
A farmer in Nigeria produces maize and soybeans. The marginal product of labor for maize is 10 units of output per unit of labor, while the marginal product of labor for soybeans is 15 units of output per unit of labor. If the farmer has 100 units of labor to allocate between the two crops, how many units of labor should be allocated to maize?
Correct A. 50
B. 60
C. 70
D. 80

Correct Answer: A

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Question 18
The government of Nigeria imposes a tax on the sale of petroleum products. The tax is levied at a rate of 10% of the sale price. If the sale price of petroleum products is ₦100 per liter, what is the tax revenue generated by the government?
Correct A. ₦10
B. ₦20
C. ₦30
D. ₦40

Correct Answer: A

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Question 19
A company in Nigeria produces a product that has a fixed \cost of ₦100,000 and a variable \cost of ₦50 per unit. If the selling price of the product is ₦75 per unit, what is the break-even point?
A. 2000
Correct B. 2500
C. 3000
D. 3500

Correct Answer: B

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Question 20
The government of Nigeria wants to increase its revenue from taxation. It decides to increase the tax rate on the sale of petroleum products from 10% to 15%. If the sale price of petroleum products is ₦100 per liter, what is the increase in tax revenue?
A. ₦5
Correct B. ₦10
C. ₦15
D. ₦20

Correct Answer: B

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Question 21
A firm's average total \cost curve intersects its average variable \cost curve at a point where the firm's marginal \cost curve is equal to its average total \cost curve. What is the implication of this point on the firm's short-run production decision?
A. The firm should produce at the minimum point of the average total \cost curve.
B. The firm should produce at the maximum point of the average total \cost curve.
C. The firm should produce at the point where the marginal \cost curve intersects the average variable \cost curve.
Correct D. The firm should produce at the point where the marginal \cost curve intersects the average total \cost curve.

Correct Answer: D

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Question 22
A country's inflation rate is 5% per annum, and its nominal interest rate is 10% per annum. What is the real interest rate in the country?
A. 5%
B. 10%
Correct C. 15%
D. 20%

Correct Answer: C

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Question 23
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current output is 16 units, and it wants to increase its output to 25 units, what is the required increase in the capital stock?
A. 10 units
B. 20 units
Correct C. 30 units
D. 40 units

Correct Answer: C

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Question 24
A country's GDP is 100 billion naira, and its population is 20 million people. What is the country's GDP per capita?
A. ₦5,000
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 25
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is 20 naira, what is the required change in price to increase the quantity demanded by 10 units?
A. ₦5
Correct B. ₦10
C. ₦15
D. ₦20

Correct Answer: B

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