POST UTME GREENFIELD UNIVERSITY 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 100L^0.5K^0.5. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦200 per unit, calculate the opportunity \cost of one additional unit of labor in terms of capital.
A. ₦100
B. ₦200
C. ₦50
D. ₦150
Question 2
The Gross Domestic Product (GDP) of a country is a widely used indicator of economic activity. Which of the following is a correct statement about GDP?
A. GDP measures the total value of all goods and services produced within a country's borders.
B. GDP measures the total value of all goods and services produced by a country's citizens, regardless of where they are produced.
C. GDP measures the total value of all goods and services consumed within a country.
D. GDP measures the total value of all goods and services imported into a country.
Question 3
The concept of opportunity \cost is closely related to the concept of scarcity. Which of the following statements accurately describes the relationship between these two concepts?
A. Opportunity \cost is the \cost of producing one good or service instead of another.
B. Opportunity \cost is the benefit of producing one good or service instead of another.
C. Opportunity \cost is the \cost of not producing one good or service.
D. Opportunity \cost is the benefit of not producing one good or service.
Question 4
A consumer's utility function is given by \( U = 2x + 3y \), where x and y are the quantities of two goods consumed. If the prices of the two goods are ₦10 and ₦20 respectively, and the consumer's income is ₦100, what is the optimal combination of x and y that maximizes utility?
A. x = 5, y = 10
B. x = 10, y = 20
C. x = 15, y = 30
D. x = 20, y = 40
Question 5
A central bank increases the money supply by 10%. If the demand for money is given by the equation \( M = 1000 - 2P \), where P is the price level, what is the new price level?
A. ₦500
B. ₦600
C. ₦700
D. ₦800
Question 6
Agricultural development in Nigeria has been hindered by several factors, including inadequate infrastructure, lack of access to credit, and limited market information. Which of the following policies would be most effective in addres\sing these challenges?
A. Increa\sing government subsidies for agricultural inputs.
B. Establishing a national agricultural extension service.
C. Implementing a cash transfer program for smallholder farmers.
D. Providing training on modern farming techniques.
Question 7
A monopolist faces a demand curve given by P = 100 - 2Q. The marginal revenue (MR) function is given by MR = 100 - 4Q. Find the profit-maximizing price.
A. 50
B. 60
C. 70
D. 80
Question 8
The concept of scarcity in economics implies that the production of one good or service is limited by the availability of resources, which can be used to produce other goods or services. This is an example of a trade-off between two competing goals. Which of the following is a correct statement about trade-offs?
A. Trade-offs are always voluntary.
B. Trade-offs involve a sacrifice of one good or service for another.
C. Trade-offs are always involuntary.
D. Trade-offs are only relevant in the short run.
Question 9
The Balance of Payments (BOP) is a statistical statement that summarizes a country's international transactions over a specific period of time. Which of the following is a correct statement about the BOP?
A. The BOP measures the total value of a country's exports and imports.
B. The BOP measures the total value of a country's foreign exchange reserves.
C. The BOP measures the total value of a country's international transactions, including trade, investment, and services.
D. The BOP measures the total value of a country's domestic production.
Question 10
A government imposes a tax on a commodity, which increases its price from ₦100 to ₦120. If the demand for the commodity is given by the equation \( Q = 100 - 2P \), what is the new quantity demanded?
A. 50
B. 60
C. 70
D. 80
Question 11
A firm's production function is given by Q = 2L^0.5K^0.5. What is the marginal product of labor?
A. \frac{L^{0.5}K^{0.5}}{2L}
B. \frac{L^{0.5}K^{0.5}}{2K}
C. \frac{L^{0.5}K^{0.5}}{2}
D. \frac{L^{0.5}K^{0.5}}{2L^2}
Question 12
A firm's total revenue (TR) function is given by TR = 100Q - 2Q^2. If the firm sells Q = 20 units, calculate the elasticity of demand.
A. 0.5
B. 1
C. 2
D. 3
Question 13
A monopolist faces a demand curve given by P = 100 - 2Q. The marginal revenue (MR) function is given by MR = 100 - 4Q. Find the profit-maximizing quantity of output.
A. 20
B. 30
C. 40
D. 50
Question 14
A country's balance of payments is in equilibrium when the value of its exports equals the value of its imports. What is the term for this equilibrium?
A. Trade deficit
B. Trade surplus
C. Current account deficit
D. Current account surplus
Question 15
A firm operating in a perfectly competitive market is characterized by which of the following?
A. A \single price maker
B. Many buyers and sellers
C. A \single buyer
D. A \single seller

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