POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's GDP is given by the equation Y = C + I + G, where Y is the GDP, C is the consumption, I is the investment and G is the government sp\ending. If the consumption is ₦100 billion, the investment is ₦50 billion and the government sp\ending is ₦20 billion, find the GDP.
A. ₦170 billion
B. ₦180 billion
C. ₦190 billion
D. ₦200 billion
Question 2
A government wants to increase its GDP by 10% within the next year. If the current GDP is ₦1,000,000,000, what is the required increase in national income?
A. ₦100,000,000
B. ₦200,000,000
C. ₦300,000,000
D. ₦400,000,000
Question 3
The government of Nigeria has introduced a new policy aimed at increa\sing the production of rice in the country. The policy includes a subsidy of ₦50 per ki\logram of rice produced. If a farmer produces 10,000 ki\lograms of rice, how much subsidy will they receive?
A. ₦500,000
B. ₦500,000
C. ₦500,000
D. ₦500,000
Question 4
A country's GDP is calculated as the sum of the value of all final goods and services produced within the country. If a country's GDP is ₦10,000,000,000 and its GNP is ₦12,000,000,000, what is the difference between the two?
A. ₦2,000,000,000
B. ₦2,000,000,000
C. ₦2,000,000,000
D. ₦2,000,000,000
Question 5
A country's GDP at market price is ₦500 billion, and its GDP at factor \cost is ₦480 billion. What is the value of the indirect tax?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 6
A firm is considering two different production processes. Process A requires 2 units of labor and 3 units of capital to produce 10 units of output, while Process B requires 3 units of labor and 2 units of capital to produce 12 units of output. Which process is more efficient?
A. Process A is more efficient
B. Process B is more efficient
C. Both processes are equally efficient
D. Neither process is efficient
Question 7
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input levels are L = 16 and K = 9, what is the marginal product of labor (MPL) at these input levels?
A. 1
B. 2
C. 3
D. 4
Question 8
A government's budget function is given by B = T + G. If the government's tax revenue is ₦50 and the government's exp\enditure is ₦30, what is the government's budget balance?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 9
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the firm's output is 16 units when L = 4 and K = 9, what is the marginal product of labor?
A. 4
B. 6
C. 8
D. 10
Question 10
A country's balance of payments account includes the following items: exports, imports, and net factor income from abroad. If a country's exports are ₦5,000,000,000, its imports are ₦6,000,000,000, and its net factor income from abroad is ₦1,000,000,000, what is the balance of payments deficit?
A. ₦1,000,000,000
B. ₦1,000,000,000
C. ₦1,000,000,000
D. ₦1,000,000,000
Question 11
A firm's production function is given by Q = 2L^0.5H^0.5. If the wage rate is ₦100 per hour and the rental rate is ₦50 per hour, find the optimal level of labor (L) and capital (H) that maximizes profits.
A. L = 100, H = 100
B. L = 50, H = 50
C. L = 200, H = 200
D. L = 150, H = 150
Question 12
A consumer has a budget of ₦50,000 per month for entertainment. The consumer has the following options for entertainment: a movie ticket that \costs ₦2,000, a concert ticket that \costs ₦5,000, and a dinner at a restaurant that \costs ₦10,000. U\sing the concept of utility, which option will the consumer choose?
A. Movie ticket
B. Concert ticket
C. Dinner at a restaurant
D. None of the above
Question 13
The concept of diminishing marginal utility is a fundamental principle in the theory of consumer behavior. Which of the following best describes this concept?
A. The law of diminishing marginal utility states that as the quantity of a good consumed increases, the marginal utility derived from each additional unit decreases.
B. The law of diminishing marginal utility states that as the quantity of a good consumed increases, the marginal utility derived from each additional unit remains cons\tant.
C. The law of diminishing marginal utility states that as the quantity of a good consumed increases, the marginal utility derived from each additional unit increases.
D. The law of diminishing marginal utility states that as the quantity of a good consumed increases, the marginal utility derived from each additional unit is unaffected.
Question 14
A firm's \cost function is given by TC = 100 + 20Q + 0.5Q^2, where Q is the quantity produced. If the firm's revenue function is given by R = 200Q - 0.5Q^2, what is the firm's profit-maximizing quantity (Q)?
A. \( Q = 10 \)
B. \( Q = 15 \)
C. \( Q = 20 \)
D. \( Q = 25 \)
Question 15
A firm's production function is given by Q = 10L^0.5K^0.5. The firm's current inputs are L = 100 and K = 100. What is the firm's current output?
A. 1000
B. 2000
C. 3000
D. 4000

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