POST UTME NOUN 2019 Economics | Objective

Are you preparing for POST UTME NOUN exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 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 fixed money supply of ₦100 billion. If the central bank decides to increase the reserve requirement from 10% to 15%, what will be the effect on the money multiplier?
A. The money multiplier will decrease
B. The money multiplier will increase
Correct C. The money multiplier will remain unchanged
D. The money multiplier will be unaffected

Correct Answer: C

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Question 2
A firm is producing a good with a total revenue of ₦10 million and a total \cost of ₦8 million. If the firm's marginal revenue is ₦200,000 and its marginal \cost is ₦150,000, what is the firm's profit-maximizing quantity?
A. 5,000 units
Correct B. 6,000 units
C. 7,000 units
D. 8,000 units

Correct Answer: B

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Question 3
A country's balance of payments is in equilibrium when its current account is equal to its capital account. If the country's current account is a deficit of ₦5 billion and its capital account is a surplus of ₦3 billion, what is the country's net capital outflow?
Correct A. ₦2 billion
B. ₦3 billion
C. ₦4 billion
D. ₦5 billion

Correct Answer: A

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Question 4
A firm is producing a good with a demand curve given by Q = 100 - 2P and a supply curve given by Q = 2P - 50. What is the equilibrium price and quantity?
A. P = ₦20, Q = 25
Correct B. P = ₦30, Q = 35
C. P = ₦40, Q = 45
D. P = ₦50, Q = 55

Correct Answer: B

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Question 5
A country's inflation rate is 10% and its interest rate is 12%. If the country's money supply is ₦100 billion and its velocity of money is 2, what is the country's nominal GDP?
A. ₦2.5 trillion
B. ₦2.8 trillion
Correct C. ₦3.0 trillion
D. ₦3.2 trillion

Correct Answer: C

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Question 6
The elasticity of demand for a product is 0.5. If the price of the product increases by 10%, what is the percentage change in the quantity demanded?
Correct A. 5%
B. 10%
C. 15%
D. 20%

Correct Answer: A

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Question 7
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the labor input increases by 20% and the capital input remains cons\tant, what is the percentage change in the quantity produced?
Correct A. 10%
B. 15%
C. 20%
D. 25%

Correct Answer: A

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Question 8
The government of a country has a budget deficit of ₦100 billion. If the government increases its revenue by 15% and decreases its exp\enditure by 10%, what is the new budget deficit?
A. ₦85 billion
Correct B. ₦90 billion
C. ₦95 billion
D. ₦100 billion

Correct Answer: B

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Question 9
A central bank increases the reserve requirement for commercial banks from 10% to 15%. If the commercial banks have ₦100 billion in reserves, what is the new amount of excess reserves?
A. ₦5 billion
Correct B. ₦10 billion
C. ₦15 billion
D. ₦20 billion

Correct Answer: B

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Question 10
The inflation rate in a country is 5% per annum. If the nominal interest rate is 10% per annum, what is the real interest rate?
A. 5%
Correct B. 6%
C. 7%
D. 8%

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. Find the profit-maximizing price and quantity.
A. ₦200, 50 units
Correct B. ₦150, 75 units
C. ₦250, 25 units
D. ₦300, 30 units

Correct Answer: B

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Question 12
A firm produces two products, A and B. The production function for A is Q_A = 2L + 3K and for B is Q_B = 4L + 2K. If the firm has 10 units of labor and 5 units of capital, how many units of A and B should it produce to maximize profit?
Correct A. Q_A = 15, Q_B = 10
B. Q_A = 20, Q_B = 5
C. Q_A = 10, Q_B = 15
D. Q_A = 5, Q_B = 20

Correct Answer: A

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Question 13
A consumer has a utility function U(x, y) = 2x + 3y. The prices of x and y are ₦5 and ₦3, respectively. Find the consumer's budget constraint and indifference curves.
Correct A. ₦5x + ₦3y = ₦100
B. ₦3x + ₦5y = ₦100
C. ₦2x + ₦3y = ₦50
D. ₦5x + ₦3y = ₦50

Correct Answer: A

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Question 14
A firm's production function is Q = 2L + 3K. The firm has 10 units of labor and 5 units of capital. Find the firm's marginal product of labor and marginal product of capital.
Correct A. Marginal Product of Labor = 2, Marginal Product of Capital = 3
B. Marginal Product of Labor = 3, Marginal Product of Capital = 2
C. Marginal Product of Labor = 4, Marginal Product of Capital = 1
D. Marginal Product of Labor = 1, Marginal Product of Capital = 4

Correct Answer: A

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Question 15
A country's GDP is ₦100 billion. The country's government sp\ends ₦20 billion on goods and services. Find the country's national income.
Correct A. ₦120 billion
B. ₦80 billion
C. ₦100 billion
D. ₦120 billion

Correct Answer: A

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Question 16
Consider a firm operating in a perfectly competitive market with a given supply curve. If the price elasticity of demand is greater than 1, what will be the effect on the firm's revenue?
A. Increase in revenue
Correct B. Decrease in revenue
C. No change in revenue
D. Uncertain effect on revenue

Correct Answer: B

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Question 17
A country's GDP is calculated as the sum of consumption, investment, government sp\ending, and net exports. If the country's GDP is ₦10 trillion and the government sp\ending is ₦1.5 trillion, what is the sum of consumption and investment?
Correct A. ₦8.5 trillion
B. ₦9 trillion
C. ₦9.5 trillion
D. ₦10 trillion

Correct Answer: A

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Question 18
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is the output, L is the labor, and K is the capital. If the firm wants to increase its output by 20%, what is the required percentage increase in labor?
A. 10%
Correct B. 15%
C. 20%
D. 25%

Correct Answer: B

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Question 19
A consumer's budget constraint is given by P1Q1 + P2Q2 = I, where P1 and P2 are the prices of two goods, Q1 and Q2 are the quantities of the two goods, and I is the income. If the consumer's income is ₦100, the price of good 1 is ₦10, and the price of good 2 is ₦20, what is the maximum quantity of good 1 that the consumer can buy?
A. 5 units
Correct B. 10 units
C. 15 units
D. 20 units

Correct Answer: B

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Question 20
A firm's \cost function is given by C(Q) = 2Q^2 + 10Q + 100, where C(Q) is the \cost and Q is the output. If the firm wants to produce 10 units of output, what is the total \cost?
A. ₦300
B. ₦350
Correct C. ₦400
D. ₦450

Correct Answer: C

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Question 21
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, calculate the firm's total \cost of production when L = 4 and K = 9.
A. ₦1,440
Correct B. ₦1,680
C. ₦1,920
D. ₦2,160

Correct Answer: B

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Question 22
A consumer has a budget constraint of 100 and a preference for two goods, A and B. The prices of A and B are 5 and 10 respectively. If the consumer's indifference curve is \tangent to the budget line, what is the consumer's optimal consumption bundle?
A. (10, 20)
B. (20, 10)
Correct C. (15, 15)
D. (5, 5)

Correct Answer: C

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Question 23
Consider a firm with a production function Q = 3L^0.7K^0.3. If the firm's current input prices are w = 15 and r = 25, calculate the firm's marginal \cost when L = 6 and K = 12.
A. ₦15
B. ₦20
Correct C. ₦25
D. ₦30

Correct Answer: C

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Question 24
A firm is operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, calculate the firm's average \cost when L = 4 and K = 9.
A. ₦360
B. ₦400
Correct C. ₦440
D. ₦480

Correct Answer: C

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Question 25
Consider a firm with a production function Q = 3L^0.7K^0.3. If the firm's current input prices are w = 15 and r = 25, calculate the firm's total revenue when Q = 20.
A. ₦600
B. ₦700
Correct C. ₦800
D. ₦900

Correct Answer: C

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