POST UTME KSU 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is Q = 3L^0.5K^0.5. If the price of the good is P = 10, and the firm's \cost function is C = 2L + 3K, what is the optimal level of output Q that maximizes profit?
A. 20
B. 30
C. 40
D. 50
Question 2
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
B. ₦60 billion
C. ₦80 billion
D. ₦100 billion
Question 3
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the price of the good is P = 10, and the firm's \cost function is C = 2L + 3K, what is the optimal level of output Q that maximizes profit?
A. 20
B. 30
C. 40
D. 50
Question 4
A government imposes a tax on a particular good to reduce its consumption. Which of the following is a correct statement regarding the effect of this tax on the supply curve?
A. The supply curve shifts to the left.
B. The supply curve shifts to the right.
C. The supply curve remains unchanged.
D. The supply curve shifts downward.
Question 5
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. \( q = 2 \)
C. \( q = 3 \)
D. \( q = 4 \)
Question 6
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
B. P = 15, Q = 25
C. P = 10, Q = 20
D. P = 25, Q = 35
Question 7
The Nigerian government has implemented a policy to increase the production of rice in the country. If the government sp\ends ₦10 billion on subsidies for rice farmers and the price of rice increases by 20% due to the subsidies, what is the change in the Consumer Price Index (CPI) for rice?
A. 10%
B. 20%
C. 30%
D. 40%
Question 8
A country's agricultural sector accounts for 20% of its GDP. If the country's GDP grows at a rate of 5% per annum, what is the growth rate of the agricultural sector?
A. 4%
B. 5%
C. 6%
D. 7%
Question 9
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
B. ( ₦ 30,000 ) billion
C. ( ₦ 40,000 ) billion
D. ( ₦ 50,000 ) billion
Question 10
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?
A. \( P = 20, Q = 30 \)
B. \( P = 30, Q = 40 \)
C. \( P = 40, Q = 50 \)
D. \( P = 50, Q = 60 \)
Question 11
A firm's production function is Q = 3L^0.5K^0.5. If the price of the good is P = 10, and the firm's \cost function is C = 2L + 3K, what is the optimal level of output Q that maximizes profit?
A. 20
B. 30
C. 40
D. 50
Question 12
A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production function for good X is given by Q_X = 2L^0.5K^0.5. If the firm has 100 units of labor and 200 units of capital, what is the maximum output of good X?
A. 100
B. 200
C. 300
D. 400
Question 13
The Nigerian government has implemented a policy to increase the production of rice in the country. If the government sp\ends ₦10 billion on subsidies for rice farmers and the price of rice increases by 20% due to the subsidies, what is the change in the Consumer Price Index (CPI) for rice?
A. 10%
B. 20%
C. 30%
D. 40%
Question 14
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?
A. ₦50,000
B. ₦55,000
C. ₦60,000
D. ₦65,000
Question 15
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?
A. \( x = 2, y = 4 \)
B. \( x = 3, y = 3 \)
C. \( x = 4, y = 2 \)
D. \( x = 5, y = 1 \)

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