POST UTME KSU 2025 Economics | Objective

Are you preparing for POST UTME KSU 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
A firm faces a demand curve given by Q = 100 - 2P and a supply curve given by Q = 2P - 10. What is the equilibrium price and quantity?
A. P = 20, Q = 30
Correct B. P = 15, Q = 25
C. P = 10, Q = 20
D. P = 25, Q = 35

Correct Answer: B

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Question 2
A consumer has a budget of ₦1000 and faces the following prices for two goods: Good A = ₦200 and Good B = ₦300. U\sing the budget constraint, what is the consumer's optimal bundle?
A. Good A = 4, Good B = 2
Correct B. Good A = 3, Good B = 3
C. Good A = 2, Good B = 4
D. Good A = 5, Good B = 1

Correct Answer: B

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Question 3
A country has a production function given by Y = K^0.5 L^0.5. If the country has a capital stock of K = 100 and a labor force of L = 100, what is the country's output?
A. Y = 100
B. Y = 50
Correct C. Y = 200
D. Y = 150

Correct Answer: C

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Question 4
A firm's demand curve is given by Q = 100 - 2P and its supply curve is given by Q = 2P - 10. What is the firm's profit-maximizing price and quantity?
A. P = 20, Q = 30
Correct B. P = 15, Q = 25
C. P = 10, Q = 20
D. P = 25, Q = 35

Correct Answer: B

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Question 5
A country has a production function given by Y = K^0.5 L^0.5. If the country has a capital stock of K = 100 and a labor force of L = 100, what is the country's output?
A. Y = 100
B. Y = 50
Correct C. Y = 200
D. Y = 150

Correct Answer: C

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Question 6
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 = 2P - 100, where Qs is the quantity supplied. Find the equilibrium price and quantity.
A. ₦50, 150 units
Correct B. ₦75, 100 units
C. ₦25, 200 units
D. ₦100, 50 units

Correct Answer: B

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Question 7
A farmer in Nigeria produces two crops: maize and soybeans. The production function for maize is given by Qm = 1000L^0.5K^0.5, where Qm is the quantity of maize produced, L is the labor input, and K is the capital input. The production function for soybeans is given by Qs = 500L^0.2K^0.8, where Qs is the quantity of soybeans produced. If the farmer has 100 units of labor and 50 units of capital, find the quantities of maize and soybeans produced.
Correct A. 1000 units of maize, 250 units of soybeans
B. 500 units of maize, 1000 units of soybeans
C. 2000 units of maize, 500 units of soybeans
D. 1500 units of maize, 750 units of soybeans

Correct Answer: A

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Question 8
The government of Nigeria is considering a policy to increase the production of agricultural products. The policy involves providing subsidies to farmers who produce maize and soybeans. The demand for maize is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of maize is given by the equation Qs = 2P - 100, where Qs is the quantity supplied. If the government provides a subsidy of ₦50 per unit of maize produced, find the new equilibrium price and quantity.
A. ₦25, 200 units
Correct B. ₦50, 150 units
C. ₦75, 100 units
D. ₦100, 50 units

Correct Answer: B

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Question 9
A firm in Nigeria produces two goods: A and B. The production function for good A is given by Qa = 1000L^0.5K^0.5, where Qa is the quantity of good A produced, L is the labor input, and K is the capital input. The production function for good B is given by Qb = 500L^0.2K^0.8, where Qb is the quantity of good B produced. If the firm has 100 units of labor and 50 units of capital, find the quantities of good A and good B produced.
Correct A. 1000 units of good A, 250 units of good B
B. 500 units of good A, 1000 units of good B
C. 2000 units of good A, 500 units of good B
D. 1500 units of good A, 750 units of good B

Correct Answer: A

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Question 10
The government of Nigeria is considering a policy to increase the production of agricultural products. The policy involves providing subsidies to farmers who produce maize and soybeans. The demand for soybeans is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of soybeans is given by the equation Qs = 2P - 100, where Qs is the quantity supplied. If the government provides a subsidy of ₦50 per unit of soybeans produced, find the new equilibrium price and quantity.
A. ₦25, 200 units
Correct B. ₦50, 150 units
C. ₦75, 100 units
D. ₦100, 50 units

Correct Answer: B

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Question 11
Consider a firm operating in a perfectly competitive market with a production function given by Q = 2L^0.5K^0.5. If the firm's current inputs are L = 16 and K = 9, calculate the marginal product of labor (MPL) and marginal product of capital (MPK).
Correct A. MPL = 0.5K^0.5 / L^0.5, MPK = 0.5L^0.5 / K^0.5
B. MPL = 0.25K^0.5 / L^0.5, MPK = 0.25L^0.5 / K^0.5
C. MPL = 0.5L^0.5 / K^0.5, MPK = 0.5K^0.5 / L^0.5
D. MPL = 0.25L^0.5 / K^0.5, MPK = 0.25K^0.5 / L^0.5

Correct Answer: A

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Question 12
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 2x + 3y = 12, find the consumer's optimal consumption bundle.
Correct A. (x, y) = (3, 2)
B. (x, y) = (2, 3)
C. (x, y) = (4, 1)
D. (x, y) = (1, 4)

Correct Answer: A

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Question 13
Consider a closed economy with a GDP of ₦100 billion and a net factor income from abroad of ₦10 billion. Calculate the country's GNP.
Correct A. ₦110 billion
B. ₦105 billion
C. ₦100 billion
D. ₦95 billion

Correct Answer: A

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Question 14
A bank has a reserve requirement of 10% and a cash reserve of ₦50 million. If the bank's deposits are ₦500 million, calculate the bank's maximum l\ending capacity.
Correct A. ₦450 million
B. ₦500 million
C. ₦550 million
D. ₦600 million

Correct Answer: A

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Question 15
Consider a firm that produces a good with a price elasticity of demand of 2. If the firm increases the price of the good by 10%, calculate the percentage change in quantity demanded.
Correct A. -20%
B. -10%
C. 0%
D. 10%

Correct Answer: A

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Question 16
A firm's \cost function is given by ( C(q) = 2q^2 + 5q + 10 ). If the firm's revenue function is ( R(q) = 3q^2 + 2q ), what is the profit-maximizing quantity of output?
A. \( q = 1 \)
B. \( q = 2 \)
Correct C. \( q = 3 \)
D. \( q = 4 \)

Correct Answer: C

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Question 17
A country's GDP is ( ₦ 100,000 ) billion, and its GNP is ( ₦ 120,000 ) billion. What is the country's net factor income from abroad?
A. ( ₦ 20,000 ) billion
Correct B. ( ₦ 30,000 ) billion
C. ( ₦ 40,000 ) billion
D. ( ₦ 50,000 ) billion

Correct Answer: B

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Question 18
A consumer's utility function is given by ( U(x,y) = 2x + 3y ). If the consumer's budget constraint is \( 2x + 3y = 12 \), what is the consumer's optimal bundle of goods?
Correct A. \( x = 2, y = 4 \)
B. \( x = 3, y = 3 \)
C. \( x = 4, y = 2 \)
D. \( x = 5, y = 1 \)

Correct Answer: A

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Question 19
A firm's demand function is given by \( Q = 100 - 2P \). If the firm's supply function is \( Q = 2P - 10 \), what is the equilibrium price and quantity?
Correct A. \( P = 20, Q = 30 \)
B. \( P = 30, Q = 40 \)
C. \( P = 40, Q = 50 \)
D. \( P = 50, Q = 60 \)

Correct Answer: A

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Question 20
A country's balance of payments is given by \( BOP = 100 + 20 - 30 \). What is the country's balance of payments?
A. ( 90 )
Correct B. ( 100 )
C. ( 110 )
D. ( 120 )

Correct Answer: B

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Question 21
Consider a firm operating in a perfectly competitive market. If the firm's marginal revenue (MR) curve intersects its marginal \cost (MC) curve at point E, where MR = MC, and the price elasticity of demand (PED) is 2, what is the likely effect on the firm's output?
Correct A. Increase output
B. Decrease output
C. No change in output
D. Uncertain effect on output

Correct Answer: A

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Question 22
A country's GDP is calculated as the sum of consumption, investment, government sp\ending, and net exports. If the country's GDP is ₦100 billion, and the government sp\ending is ₦20 billion, what is the sum of consumption and investment?
A. ₦40 billion
Correct B. ₦60 billion
C. ₦80 billion
D. ₦100 billion

Correct Answer: B

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Question 23
A firm is considering two different production processes. Process A has a fixed \cost of ₦10,000 and a variable \cost of ₦5 per unit. Process B has a fixed \cost of ₦15,000 and a variable \cost of ₦3 per unit. If the firm produces 10,000 units, what is the total \cost of production for Process A?
Correct A. ₦50,000
B. ₦55,000
C. ₦60,000
D. ₦65,000

Correct Answer: A

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Question 24
A country's balance of payments (BOP) accounts show a trade deficit of ₦50 billion. If the country's foreign exchange reserves are ₦100 billion, what is the percentage change in the country's foreign exchange reserves?
Correct A. -50%
B. -25%
C. 0%
D. 25%

Correct Answer: A

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Question 25
A firm's production function 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 its labor from 100 to 120, and its capital from 100 to 120, what is the percentage change in output?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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