POST UTME NOUN 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's marginal revenue function is MR = 200 - 4Q, calculate the price elasticity of demand at a quantity of 50 units.
A. 0.5
B. 1
C. 2
D. 4
Question 2
Determine the equilibrium price and quantity of wheat in the Nigerian market, given the following supply and demand equations:\n\nSupply: Qs = 100 + 2P\nDemand: Qd = 150 - 3P\n\nAssume the initial price is ₦100.
A. ₦120, 120 units
B. ₦150, 150 units
C. ₦180, 180 units
D. ₦200, 200 units
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, what is the \cost-minimizing combination of labor and capital?
A. L = 100, K = 50
B. L = 50, K = 100
C. L = 100, K = 100
D. L = 50, K = 50
Question 4
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital are 100 and 200 respectively, what is the firm's output?
A. 200
B. 300
C. 400
D. 500
Question 5
A firm faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. What is the profit-maximizing price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 6
A central bank increases the money supply by 10%. What is the expected effect on the price level?
A. 5%
B. 10%
C. 15%
D. 20%
Question 7
A government imposes a tax of $1 on a good, which increases the price from $5 to $6. If the demand for the good is given by Q = 100 - 2P, what is the new equilibrium quantity?
A. 40
B. 50
C. 60
D. 70
Question 8
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital are fixed at 100 units each, calculate the marginal product of labor.
A. 5
B. 10
C. 15
D. 20
Question 9
A consumer's utility function is given by U(x, y) = 2x^0.5y^0.5. If the price of x is ₦50 per unit and the price of y is ₦100 per unit, what is the consumer's indifference curve?
A. U(x, y) = 10
B. U(x, y) = 20
C. U(x, y) = 30
D. U(x, y) = 40
Question 10
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm's labor and capital inputs are increased by 20% and 15%, respectively, what is the percentage change in output?
A. 10%
B. 12%
C. 15%
D. 18%
Question 11
A firm's total revenue is given by TR = 100Q - 2Q^2, where Q is output. If the firm's output is increased by 20%, what is the percentage change in total revenue?
A. 4%
B. 8%
C. 12%
D. 16%
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 prices of the two goods are $2 and $3, respectively, and the consumer's income is $20, what is the optimal bundle of goods?
A. x = 4, y = 2
B. x = 3, y = 3
C. x = 2, y = 4
D. x = 1, y = 5
Question 13
A country's balance of payments account is given by the following equation: BOP = X - M - \( I - S \). If the country's exports are ₦1000, imports are ₦500, and the current account deficit is ₦200, what is the value of the capital account?
A. ₦300
B. ₦400
C. ₦500
D. ₦600
Question 14
The Nigerian government has implemented a policy to increase the production of rice, a staple food in the country. The policy includes providing subsidies to farmers and investing in irrigation infrastructure. However, the policy has led to a decrease in the production of other crops. What is the opportunity \cost of this policy?
A. Decrease in the production of other crops
B. Increase in the price of rice
C. Decrease in the income of farmers
D. Increase in the employment of farmers
Question 15
A firm's \cost function is given by C(x) = 2x^2 + 10x + 5. If the firm produces 20 units, what is the total \cost?
A. ₦250
B. ₦500
C. ₦750
D. ₦1000

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