POST UTME IMS U 2020 Economics | Objective

Are you preparing for POST UTME IMS U 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.

Practice these randomly selected questions to test your readiness.

Question 1
Consider a country with a trade deficit of ₦500 billion and a current account deficit of ₦200 billion. If the country's GDP is ₦20 trillion, what is the ratio of the current account deficit to the trade deficit?
A. 0.4
Correct B. 0.6
C. 0.8
D. 1.0

Correct Answer: B

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Question 2
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital inputs are 100 and 400 respectively, what is the marginal product of labor?
A. 0.5
B. 1.0
Correct C. 1.5
D. 2.0

Correct Answer: C

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Question 3
A country's government budget is given by the equation: G = T + I + X, where G is government exp\enditure, T is tax revenue, I is investment, and X is exports. If the government exp\enditure is ₦1 trillion, tax revenue is ₦500 billion, investment is ₦200 billion, and exports are ₦300 billion, what is the value of G?
A. 1.3
B. 1.5
C. 1.7
Correct D. 1.9

Correct Answer: D

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Question 4
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦2 and ₦3 respectively, what is the consumer's optimal bundle of goods?
Correct A. (20, 30)
B. (30, 20)
C. (40, 10)
D. (10, 40)

Correct Answer: A

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Question 5
A country's GDP is given by the equation: GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government exp\enditure, X is exports, and M is imports. If the country's GDP is ₦20 trillion, consumption is ₦5 trillion, investment is ₦2 trillion, government exp\enditure is ₦3 trillion, exports are ₦4 trillion, and imports are ₦2 trillion, what is the value of M?
A. 1.0
B. 1.5
Correct C. 2.0
D. 2.5

Correct Answer: C

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Question 6
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm produces 20 units, what is the total \cost?
A. 1000
B. 1200
Correct C. 1500
D. 1800

Correct Answer: C

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Question 7
Agricultural sector in Nigeria contributes 25% to the country's GDP. If the GDP is ₦10 trillion, what is the contribution of the agricultural sector?
Correct A. ₦2.5 trillion
B. ₦2 trillion
C. ₦1.5 trillion
D. ₦1 trillion

Correct Answer: A

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Question 8
The demand function for a product is given by p = 100 - 2q. If the price elasticity of demand is -2, what is the quantity demanded?
A. 20
Correct B. 30
C. 40
D. 50

Correct Answer: B

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Question 9
A firm's revenue function is given by R(q) = 100q - 2q^2. If the firm produces 30 units, what is the marginal revenue?
A. 80
B. 90
Correct C. 100
D. 110

Correct Answer: C

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Question 10
The government of Nigeria imposes a tax of ₦500 on every liter of petrol. If the price of petrol is ₦150 per liter, what is the tax revenue?
A. ₦75,000
Correct B. ₦75,500
C. ₦76,000
D. ₦76,500

Correct Answer: B

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Question 11
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. If the firm's profit-maximizing output is 40 units, what is the price elasticity of demand at this output level?
Correct A. 0.5
B. -0.5
C. 1.0
D. 2.0

Correct Answer: A

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Question 12
A country's GDP is given by the equation Y = C + I + G + \( X - M \). If the country's consumption function is C = 500 + 0.8Y, investment function is I = 200 + 0.2Y, government sp\ending is G = 1000, and the trade balance is X - M = 500, what is the country's equilibrium GDP?
A. 7500
B. 8000
Correct C. 8500
D. 9000

Correct Answer: C

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Question 13
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are L = 16 and K = 9, respectively, what is the firm's marginal product of labor?
A. 0.5
Correct B. 1.0
C. 1.5
D. 2.0

Correct Answer: B

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Question 14
A firm's revenue function is given by R = 100P^2. If the firm's price elasticity of demand is 2, what is the firm's optimal price?
A. 10
Correct B. 20
C. 30
D. 40

Correct Answer: B

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Question 15
A country's balance of payments is given by the equation BOP = X - M + \( F - I \). If the country's trade balance is X - M = 500, foreign investment is F = 1000, and domestic investment is I = 200, what is the country's balance of payments?
A. 1500
B. 1600
Correct C. 1700
D. 1800

Correct Answer: C

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Question 16
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is downward sloping and the firms are price takers, what is the relationship between the market supply curve and the individual firm's supply curve?
A. The market supply curve is steeper than the individual firm's supply curve.
B. The market supply curve is flatter than the individual firm's supply curve.
Correct C. The market supply curve is identical to the individual firm's supply curve.
D. The market supply curve is vertical, while the individual firm's supply curve is horizontal.

Correct Answer: C

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Question 17
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost curve is MC = 10. What is the monopolist's optimal price and quantity?
Correct A. P = 40, Q = 30
B. P = 30, Q = 40
C. P = 20, Q = 50
D. P = 50, Q = 20

Correct Answer: A

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Question 18
Consider a production function given by Q = 2L^0.5K^0.5. If the price of labor is $10 per unit and the price of capital is $20 per unit, what is the optimal combination of labor and capital?
A. L = 4, K = 1
B. L = 1, K = 4
Correct C. L = 2, K = 2
D. L = 1, K = 1

Correct Answer: C

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Question 19
A country's GDP is $100 billion, and its GNP is $120 billion. What is the country's net factor income from abroad?
Correct A. $20 billion
B. $10 billion
C. $5 billion
D. $15 billion

Correct Answer: A

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Question 20
A firm's demand curve is given by Q = 100 - 2P. The firm's marginal \cost curve is MC = 10. What is the firm's optimal price and quantity?
Correct A. P = 40, Q = 30
B. P = 30, Q = 40
C. P = 20, Q = 50
D. P = 50, Q = 20

Correct Answer: A

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Question 21
A monopolistically competitive firm faces a demand curve with the following equation: Q = 100 - 2P. If the firm's marginal revenue (MR) is given by MR = 200 - 4Q, find the firm's optimal price and quantity.
A. P = 50, Q = 25
Correct B. P = 75, Q = 12.5
C. P = 100, Q = 0
D. P = 25, Q = 50

Correct Answer: B

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Question 22
A country's balance of payments (BOP) accounts are given by the following equations: CA = 100 + 0.5Y, SA = 50 + 0.2Y, and FA = 20 + 0.1Y. If the country's nominal GDP (Y) is 1000, find the current account (CA) and the capital account (KA).
Correct A. CA = 550, KA = 150
B. CA = 450, KA = 250
C. CA = 350, KA = 350
D. CA = 250, KA = 450

Correct Answer: A

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Question 23
A firm's total revenue (TR) is given by the equation TR = 200Q - 2Q^2. If the firm's marginal \cost (MC) is given by MC = 100 - 2Q, find the firm's optimal quantity and price.
A. Q = 10, P = 20
Correct B. Q = 20, P = 15
C. Q = 30, P = 10
D. Q = 40, P = 5

Correct Answer: B

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Question 24
A country's government budget constraint is given by the equation: G = T + B. If the government's tax revenue (T) is 100 and the budget deficit (B) is 50, find the government's exp\enditure (G).
Correct A. G = 150
B. G = 200
C. G = 250
D. G = 300

Correct Answer: A

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Question 25
A firm's demand curve is given by the equation Q = 100 - 2P. If the firm's marginal revenue (MR) is given by MR = 200 - 4Q, find the firm's optimal price and quantity.
A. P = 50, Q = 25
Correct B. P = 75, Q = 12.5
C. P = 100, Q = 0
D. P = 25, Q = 50

Correct Answer: B

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