POST UTME LASU 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolistically competitive firm faces a demand curve given by Q = 100 - 2P. The firm's marginal revenue (MR) function is MR = 50 - 2Q. Find the firm's profit-maximizing output level.
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 2
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 budget constraint is 10x + 5y = 50, what is the consumer's optimal bundle of goods?
A. x = 2, y = 4
B. x = 3, y = 5
C. x = 4, y = 6
D. x = 5, y = 7
Question 3
A firm's demand curve for a good is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's marginal \cost is 10, what is the profit-maximizing price?
A. 20
B. 30
C. 40
D. 50
Question 4
A country's GDP is given by \( GDP = 1000 + 0.2Y \), where Y is the country's GNP. If the country's GNP is $5000, find the country's GDP.
A. $1200
B. $1300
C. $1400
D. $1500
Question 5
A firm's production function is given by Q = 100K^0.5L^0.5, where Q is output, K is capital, and L is labor. If the firm's capital stock is 400 and labor is 900, what is the marginal product of labor?
A. 0.25
B. 0.5
C. 1
D. 2
Question 6
A country's inflation rate is given by the formula: Inflation Rate = \( CPI - CPI_last_year \) / CPI_last_year * 100. If the current CPI is 120 and the CPI last year was 100, find the inflation rate.
A. 20%
B. 30%
C. 40%
D. 50%
Question 7
A consumer has a budget constraint given by I = 100 - 2C. The consumer's indifference curve is given by U = 2C. Find the consumer's optimal level of consumption.
A. C = 50, U = 100
B. C = 75, U = 150
C. C = 100, U = 200
D. C = 125, U = 250
Question 8
A country's GDP is given by GDP = C + I + G + \( X - M \). If the country's consumption (C) is 100, investment (I) is 50, government sp\ending (G) is 200, exports (X) are 150, and imports (M) are 100, find the country's GDP.
A. 500
B. 600
C. 700
D. 800
Question 9
A consumer's indifference curve is given by the equation ( U(x,y) = 2x + 3y ). If the consumer's initial \endowment is \( x_0, y_0 \ \) = (10, 20) ), and the price of good x is \( P_x = 2 \), find the consumer's optimal bundle.
A. Bundle (15, 30)
B. Bundle (20, 40)
C. Bundle (25, 50)
D. Bundle (30, 60)
Question 10
Assume that the Marshall-Lerner condition holds for a small open economy. If the country's export demand elasticity is 2 and import demand elasticity is 3, what is the minimum value of the sum of the export and import demand elasticities required to ensure that a devaluation of the currency will lead to an improvement in the trade balance?
A. 1
B. 2
C. 3
D. 4
Question 11
A country's GDP is calculated as the sum of all final goods and services produced within its borders. However, if a multinational corporation operating in the country imports all its raw materials and exports all its finished goods, what would be the impact on the country's GDP?
A. The country's GDP would increase
B. The country's GDP would decrease
C. The country's GDP would remain unchanged
D. The country's GDP would be unaffected
Question 12
A government imposes a tax on a particular good. The demand for the good is given by the equation \( Q_d = 100 - 2P \) and the supply of the good is given by the equation \( Q_s = 2P - 10 \). If the government imposes a tax of ₦5 per unit, what will be the new equilibrium price and quantity?
A. P = ₦10, Q = 20
B. P = ₦15, Q = 25
C. P = ₦20, Q = 30
D. P = ₦25, Q = 35
Question 13
A firm's total revenue (TR) is given by TR = 100Q - 2Q^2. The firm's total \cost (TC) is given by TC = 50Q + 10Q^2. Find the firm's profit-maximizing output level.
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 14
A country's money supply is given by M = ₦100 billion. If the velocity of money is 5, determine the nominal GDP.
A. ₦500 billion
B. ₦600 billion
C. ₦700 billion
D. ₦800 billion
Question 15
A firm's demand function is given by Q = 100 - 2P. If the price elasticity of demand is 0.5, determine the optimal price to maximize revenue.
A. ₦20
B. ₦30
C. ₦40
D. ₦50

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