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POST UTME GREENFIELD UNIVERSITY 2021 Economics | Objective

Are you preparing for POST UTME GREENFIELD UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2021 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 is an example of a fundamental economic problem. What is the correct term for this problem?

A. Opportunity Cost

B. Scarcity

Correct C. Economic Problem

D. Resource Allocation

Correct Answer: C

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Question 2

A farmer in Nigeria produces maize and beans on a 10-hectare farm. The total revenue from the sale of maize is ₦150,000, and the total revenue from the sale of beans is ₦120,000. What is the total value of the farmer's output?

Correct A. ₦270,000

B. ₦280,000

C. ₦290,000

D. ₦300,000

Correct Answer: A

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Question 3

The production function for a firm is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm increases the labor from 4 to 9 units, and the capital from 9 to 16 units, what is the percentage change in output?

A. 25%

Correct B. 30%

C. 35%

D. 40%

Correct Answer: B

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Question 4

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 is ₦20, what is the quantity demanded?

A. 40

Correct B. 50

C. 60

D. 70

Correct Answer: B

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Question 5

A firm is producing a good u\sing a production function Q = 2L^0.5K^0.5. If the firm is currently producing 16 units of output with 4 units of labor and 9 units of capital, what is the marginal product of labor?

A. 2

Correct B. 3

C. 4

D. 5

Correct Answer: B

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Question 6

The government of Nigeria has introduced a new tax policy aimed at increa\sing revenue from the agricultural sector. The policy includes a 10% tax on all agricultural products sold in the market. If the total revenue from the sale of agricultural products is ₦1,500,000, what is the amount of tax collected by the government?

Correct A. ₦150,000

B. ₦1,500,000

C. ₦1,000,000

D. ₦100,000

Correct Answer: A

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Question 7

A firm is producing a good u\sing two inputs, labor (L) and capital (K). The 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, and the firm is currently producing 100 units of the good, what is the total \cost of production?

A. ₦20,000

B. ₦30,000

Correct C. ₦40,000

D. ₦50,000

Correct Answer: C

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Question 8

The government of Nigeria has set a target of increa\sing the country's GDP by 10% within the next 5 years. If the current GDP is ₦20 trillion, what is the total amount of investment required to achieve this target?

A. ₦2 trillion

Correct B. ₦4 trillion

C. ₦6 trillion

D. ₦8 trillion

Correct Answer: B

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Question 9

A farmer is producing two crops, maize and soybeans. The production function for maize is given by Qm = 2Lm^0.5Km^0.5, where Lm is the amount of labor used and Km is the amount of capital used. The production function for soybeans is given by Qs = 3Ls^0.5Ks^0.5, where Ls is the amount of labor used and Ks is the amount of capital used. If the farmer is currently u\sing 100 units of labor and 200 units of capital, what is the total output of maize and soybeans?

Correct A. 200 units of maize and 300 units of soybeans

B. 300 units of maize and 200 units of soybeans

C. 400 units of maize and 400 units of soybeans

D. 500 units of maize and 500 units of soybeans

Correct Answer: A

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Question 10

The government of Nigeria has introduced a new policy aimed at increa\sing the production of rice in the country. The policy includes a 50% subsidy on the \cost of fertilizers and pesticides for rice farmers. If the current \cost of fertilizers and pesticides is ₦100,000, what is the amount of subsidy provided to each farmer?

Correct A. ₦50,000

B. ₦75,000

C. ₦100,000

D. ₦125,000

Correct Answer: A

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Question 11

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's marginal revenue is 50, find the number of units sold at which the firm's total revenue is maximized.

A. 20

B. 30

Correct C. 40

D. 50

Correct Answer: C

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Question 12

In a perfectly competitive market, the demand curve for a firm's product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the firm's marginal revenue is 50, find the price at which the firm's total revenue is maximized.

A. 20

Correct B. 30

C. 40

D. 50

Correct Answer: B

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Question 13

A firm's total \cost is given by the equation TC = 100 + 2x + 0.5x^2, where x is the number of units produced. If the firm's marginal \cost is 10, find the number of units produced at which the firm's total \cost is minimized.

Correct A. 20

B. 30

C. 40

D. 50

Correct Answer: A

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Question 14

A consumer has a budget of ₦1000 and a preference for two goods, A and B. The prices of the goods are ₦200 and ₦300 respectively. If the consumer's indifference curves are given by the equation U = 2x + 3y, where x and y are the quantities of goods A and B respectively, find the quantities of goods A and B that the consumer will purchase.

Correct A. 5 units of A, 3 units of B

B. 3 units of A, 5 units of B

C. 4 units of A, 4 units of B

D. 2 units of A, 6 units of B

Correct Answer: A

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Question 15

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 revenue is 50, find the price at which the firm's total revenue is maximized.

A. 20

Correct B. 30

C. 40

D. 50

Correct Answer: B

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Question 16

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%?

Correct A. 5%

B. 10%

C. 15%

D. 20%

Correct Answer: A

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Question 17

A monopolist faces a demand curve given by Qd = 100 - 2P and a marginal revenue curve given by MR = 20 - 2P. If the price elasticity of demand is 0.5, what is the optimal price and quantity for the monopolist?

Correct A. Price = 40, Quantity = 30

B. Price = 50, Quantity = 25

C. Price = 60, Quantity = 20

D. Price = 70, Quantity = 15

Correct Answer: A

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Question 18

A country's balance of payments is given by the equation BOP = X - M, where X is the value of exports and M is the value of imports. If the value of exports is 100 and the value of imports is 80, what is the balance of payments?

Correct A. 10

B. 20

C. 30

D. 40

Correct Answer: A

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Question 19

A firm's \cost function is given by the equation C = 100 + 2Q, where C is the total \cost and Q is the quantity produced. If the firm produces 20 units, what is the total \cost?

A. 200

Correct B. 220

C. 240

D. 260

Correct Answer: B

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Question 20

A firm's revenue function is given by the equation R = 100Q - 2Q^2, where R is the total revenue and Q is the quantity produced. If the firm produces 10 units, what is the total revenue?

A. 800

Correct B. 820

C. 840

D. 860

Correct Answer: B

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Question 21

The government of Nigeria has introduced a new policy to increase the production of rice in the country. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing the availability of fertilizers. However, the policy has been criticized for being too expensive and not addres\sing the root causes of the problem. Which of the following best describes the type of economic planning involved in this policy?

A. Demand management

Correct B. Supply-side economics

C. Fiscal policy

D. Monetary policy

Correct Answer: B

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Question 22

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 = 50 + 3P, where Qs is the quantity supplied and P is the price. What is the equilibrium price and quantity?

Correct A. P = 20, Q = 70

B. P = 30, Q = 80

C. P = 40, Q = 90

D. P = 50, Q = 100

Correct Answer: A

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Question 23

The government of Nigeria has introduced a new agricultural policy aimed at increa\sing the production of maize. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing the availability of fertilizers. However, the policy has been criticized for being too expensive and not addres\sing the root causes of the problem. Which of the following best describes the type of agricultural development involved in this policy?

Correct A. Green revolution

B. Agricultural modernization

C. Sustainable agriculture

D. Organic farming

Correct Answer: A

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Question 24

The money market in Nigeria is characterized by a high level of inflation. The central bank has introduced a new monetary policy aimed at reducing inflation. The policy includes increa\sing the reserve requirement for commercial banks, increa\sing the cash reserve ratio, and increa\sing the discount rate. Which of the following best describes the effect of this policy on the money market?

Correct A. Reducing the money supply

B. Increa\sing the money supply

C. Reducing inflation

D. Increa\sing inflation

Correct Answer: A

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Question 25

The production function for a firm is given by the equation Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. The firm is currently producing 100 units of output with 10 units of labor and 10 units of capital. What is the marginal product of labor?

A. 5

Correct B. 10

C. 15

D. 20

Correct Answer: B

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