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POST UTME NOUN 2025 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 2025 Economics (Objective) questions designed to simulate the real exam environment.

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Question 1

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

Correct C. ₦750

D. ₦1000

Correct Answer: C

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Question 2

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

Correct D. ₦600

Correct Answer: D

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Question 3

A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦2 and ₦3 respectively, what is the consumer's optimal bundle?

Correct A. x = 100, y = 150

B. x = 150, y = 100

C. x = 200, y = 50

D. x = 50, y = 200

Correct Answer: A

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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

Correct C. 400

D. 500

Correct Answer: C

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Question 5

A country's economic growth rate is given by the equation: g = s + i - d. If the country's savings rate is 20%, investment rate is 30%, and depreciation rate is 10%, what is the country's economic growth rate?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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Question 6

Consider a closed economy with a \single good, labor, and capital. If the production function is given by \( Y = 10K^{\frac{1}{2}}L^{\frac{1}{2}} \), where ( Y ) is output, ( K ) is capital, and ( L ) is labor, and the price of the good is \( P = 10 \), calculate the value of the marginal product of labor (MPL) when \( K = 100 \) and \( L = 100 \).

Correct A. \( MPL = \frac{1}{2} \times 10^{\frac{1}{2}} \times 100^{-\frac{1}{2}} \)

B. \( MPL = \frac{1}{2} \times 10^{\frac{1}{2}} \times 100^{\frac{1}{2}} \)

C. \( MPL = \frac{1}{2} \times 10^{\frac{1}{2}} \times 100 \)

D. \( MPL = \frac{1}{2} \times 10 \times 100^{\frac{1}{2}} \)

Correct Answer: A

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Question 7

Suppose the demand for a product is given by \( Q_d = 100 - 2P \) and the supply is given by \( Q_s = 2P - 10 \). If the market is in equilibrium, what is the price of the product?

A. \( P = 20 \)

Correct B. \( P = 15 \)

C. \( P = 30 \)

D. \( P = 25 \)

Correct Answer: B

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Question 8

Consider a firm that produces two goods, A and B. The production function for good A is given by \( Q_A = 2L_A + 3K_A \) and for good B is given by \( Q_B = 3L_B + 2K_B \). If the firm has 10 units of labor and 15 units of capital, how many units of good A should it produce?

A. \( Q_A = 25 \)

B. \( Q_A = 30 \)

Correct C. \( Q_A = 20 \)

D. \( Q_A = 35 \)

Correct Answer: C

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Question 9

Suppose the demand for a product is given by \( Q_d = 100 - 2P \) and the supply is given by \( Q_s = 2P - 10 \). If the market is in equilibrium, what is the quantity of the product demanded?

A. \( Q_d = 90 \)

Correct B. \( Q_d = 80 \)

C. \( Q_d = 70 \)

D. \( Q_d = 60 \)

Correct Answer: B

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Question 10

Consider a firm that produces a \single good. The production function is given by \( Q = 10K^{\frac{1}{2}}L^{\frac{1}{2}} \), where ( Q ) is output, ( K ) is capital, and ( L ) is labor. If the price of the good is \( P = 10 \) and the firm has 100 units of capital and 100 units of labor, what is the value of the marginal product of capital (MPC)?

Correct A. \( MPC = \frac{1}{2} \times 10^{\frac{1}{2}} \times 100^{\frac{1}{2}} \)

B. \( MPC = \frac{1}{2} \times 10^{\frac{1}{2}} \times 100^{-\frac{1}{2}} \)

C. \( MPC = \frac{1}{2} \times 10 \times 100^{\frac{1}{2}} \)

D. \( MPC = \frac{1}{2} \times 10 \times 100 \)

Correct Answer: A

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Question 11

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

Correct B. ₦150, 150 units

C. ₦180, 180 units

D. ₦200, 200 units

Correct Answer: B

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Question 12

Agricultural sector in Nigeria contributes significantly to the country's GDP. However, the sector is plagued by low productivity and inefficient use of resources. Which of the following policies would be most effective in addres\sing these issues?

A. Providing subsidies to farmers

Correct B. Implementing crop rotation and intercropping practices

C. Investing in irrigation infrastructure

D. Promoting mechanization of farming

Correct Answer: B

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Question 13

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?

Correct 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

Correct Answer: A

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Question 14

The Nigerian economy is characterized by a large informal sector. The informal sector is not subject to the same regulations and taxes as the formal sector. What is the effect of this on the government's revenue?

A. Increase in government revenue

Correct B. Decrease in government revenue

C. No effect on government revenue

D. Increase in government exp\enditure

Correct Answer: B

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Question 15

The Nigerian government has implemented a policy to increase the production of textiles. The policy includes providing subsidies to textile manufacturers and investing in textile machinery. However, the policy has led to an increase in the price of textiles. What is the opportunity \cost of this policy?

A. Increase in the price of textiles

Correct B. Decrease in the production of other goods

C. Decrease in the income of textile manufacturers

D. Increase in the employment of textile workers

Correct Answer: B

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Question 16

Consider a country with a production function given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the country's labor and capital are fixed at 100 units each, calculate the opportunity \cost of increa\sing output by 10 units.

A. ₦500

Correct B. ₦1000

C. ₦2000

D. ₦5000

Correct Answer: B

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Question 17

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

Correct C. 2

D. 4

Correct Answer: C

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Question 18

A country's trade balance is given by TB = X - M, where TB is trade balance, X is exports, and M is imports. If the country's exports and imports are ₦1000 and ₦800 respectively, calculate the trade balance.

A. ₦100

Correct B. ₦200

C. ₦300

D. ₦400

Correct Answer: B

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Question 19

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

Correct B. 10

C. 15

D. 20

Correct Answer: B

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Question 20

A country's budget is given by B = T + I, where B is budget, T is tax revenue, and I is interest payment. If the country's tax revenue and interest payment are ₦1000 and ₦500 respectively, calculate the budget.

A. ₦1000

Correct B. ₦1500

C. ₦2000

D. ₦2500

Correct Answer: B

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Question 21

A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. What is the profit-maximizing quantity?

A. 50

B. 75

Correct C. 100

D. 125

Correct Answer: C

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Question 22

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?

Correct A. L = 100, K = 50

B. L = 50, K = 100

C. L = 100, K = 100

D. L = 50, K = 50

Correct Answer: A

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Question 23

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 budget constraint?

A. 50x + 100y = 1000

Correct B. 50x + 100y = 2000

C. 50x + 100y = 3000

D. 50x + 100y = 4000

Correct Answer: B

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Question 24

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

Correct B. ₦30

C. ₦40

D. ₦50

Correct Answer: B

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Question 25

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

Correct B. U(x, y) = 20

C. U(x, y) = 30

D. U(x, y) = 40

Correct Answer: B

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