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POST UTME OAU 2017 Economics | Objective

Are you preparing for POST UTME OAU exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2017 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1

Determine the marginal utility of income for a consumer who derives utility from consuming a good, given the utility function U(x) = 2x^0.5 - 3x^$ -0.5 $, where x is the quantity of the good consumed.

A. 1/x

B. 1/(2x)

Correct C. 2/x^0.5

D. 3/x^0.5

Correct Answer: C

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Question 2

A farmer in Nigeria decides to cultivate a new crop. The crop requires an initial investment of ₦100,000 and has a variable \cost of ₦50 per unit. The selling price of the crop is ₦100 per unit. If the farmer expects to sell 2,000 units, what is the minimum price the farmer must charge to break even?

A. ₦50

B. ₦75

C. ₦100

Correct D. ₦125

Correct Answer: D

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Question 3

A country's GDP is ₦1,500,000,000,000. If the country's population is 200,000,000, what is the per capita income?

A. ₦7,500

B. ₦7,500,000

C. ₦7,500,000,000

Correct D. ₦7,500,000,000,000

Correct Answer: D

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Question 4

A central bank in Nigeria implements a monetary policy to reduce inflation. The policy involves increa\sing the reserve requirement for commercial banks from 10% to 15%. If the commercial banks have ₦100,000,000 in excess reserves, what is the maximum amount of new loans that the commercial banks can make?

A. ₦50,000,000

B. ₦75,000,000

C. ₦100,000,000

Correct D. ₦125,000,000

Correct Answer: D

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Question 5

A government in Nigeria decides to implement a fiscal policy to stimulate economic growth. The policy involves increa\sing government sp\ending by ₦50,000,000,000. If the government's tax revenue is ₦200,000,000,000, what is the change in the government's budget deficit?

A. ₦50,000,000,000

Correct B. ₦100,000,000,000

C. ₦150,000,000,000

D. ₦200,000,000,000

Correct Answer: B

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Question 6

A firm's production function is given by Q = 2L^0.5 + 3K^0.5. If the firm's current input levels are L = 4 and K = 9, calculate the marginal product of labor (MPL) and marginal product of capital (MPK).

Correct A. MPL = 0.3536, MPK = 0.1768

B. MPL = 0.1768, MPK = 0.3536

C. MPL = 0.3536, MPK = 0.3536

D. MPL = 0.1768, MPK = 0.1768

Correct Answer: A

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Question 7

A government is considering a tax on a particular good. The supply curve for the good is given by P = 2Q + 10, and the demand curve is given by P = 50 - 2Q. If the government imposes a tax of ₦5 per unit, what will be the new equilibrium price and quantity?

Correct A. New equilibrium price = ₦25, New equilibrium quantity = 5

B. New equilibrium price = ₦30, New equilibrium quantity = 10

C. New equilibrium price = ₦20, New equilibrium quantity = 5

D. New equilibrium price = ₦15, New equilibrium quantity = 10

Correct Answer: A

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Question 8

A firm's \cost function is given by C(Q) = 2Q^2 + 10Q + 5. If the firm produces Q = 5 units, what is the total \cost?

Correct A. Total \cost = ₦135

B. Total \cost = ₦145

C. Total \cost = ₦155

D. Total \cost = ₦165

Correct Answer: A

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Question 9

A government is considering a budget that allocates ₦100 billion for education and ₦50 billion for healthcare. If the government also allocates ₦20 billion for defense, what is the total budget?

Correct A. Total budget = ₦170 billion

B. Total budget = ₦180 billion

C. Total budget = ₦190 billion

D. Total budget = ₦200 billion

Correct Answer: A

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Question 10

A firm's revenue function is given by R(Q) = 20Q - 2Q^2. If the firm produces Q = 10 units, what is the total revenue?

Correct A. Total revenue = ₦180

B. Total revenue = ₦190

C. Total revenue = ₦200

D. Total revenue = ₦210

Correct Answer: A

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Question 11

Consider a country with a trade deficit of $100 billion and a GDP of $500 billion. If the country's imports are valued at $300 billion and its exports are valued at $200 billion, what is the value of the country's net foreign assets?

Correct A. $-50 billion

B. $-100 billion

C. $-200 billion

D. $-300 billion

Correct Answer: A

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Question 12

A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 10% and 20% respectively, what is the percentage change in output?

A. 5%

B. 10%

Correct C. 15%

D. 20%

Correct Answer: C

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Question 13

A firm's total revenue is given by TR = 100Q - 2Q^2, where Q is the quantity sold. If the firm sells 20 units, what is its total revenue?

A. $1000

Correct B. $1200

C. $1400

D. $1600

Correct Answer: B

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Question 14

A country's money supply is given by M = 1000 + 0.5Y, where Y is the country's income. If the country's income is $100 billion, what is its money supply?

A. $50 billion

B. $100 billion

Correct C. $150 billion

D. $200 billion

Correct Answer: C

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Question 15

A country's GDP is given by GDP = C + I + G + $ X - M $, where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's consumption is $200 billion, investment is $50 billion, government sp\ending is $100 billion, exports are $150 billion, and imports are $100 billion, what is its GDP?

A. $300 billion

B. $400 billion

Correct C. $500 billion

D. $600 billion

Correct Answer: C

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Question 16

Consider a firm operating in a perfectly competitive market with a production function given by Q = 2L^$ 1/2 $K^$ 1/2 $. If the firm's current input prices are w_L = 10 and w_K = 20, and it currently uses 4 units of labor and 9 units of capital, calculate the firm's current total \cost. Assume that the firm's production function exhibits cons\tant returns to scale.

A. ₦1,440

Correct B. ₦1,680

C. ₦1,920

D. ₦2,160

Correct Answer: B

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Question 17

A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is given by 2x + 3y = 12, and the prices of the two goods are p_x = 2 and p_y = 3, respectively, determine the consumer's optimal consumption bundle.

Correct A. (2, 2)

B. (3, 3)

C. (4, 2)

D. (2, 4)

Correct Answer: A

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Question 18

Consider a country that imports 100 units of a good from another country at a price of $10 per unit. The country also exports 50 units of another good to the same country at a price of $20 per unit. If the country's exchange rate is 1 USD = 2 NGN, calculate the country's balance of payments in NGN.

A. ₦50,000

Correct B. ₦100,000

C. ₦150,000

D. ₦200,000

Correct Answer: B

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Question 19

A firm's production function is given by Q = 3L^$ 1/3 $K^$ 2/3 $. If the firm's current input prices are w_L = 15 and w_K = 30, and it currently uses 8 units of labor and 16 units of capital, calculate the firm's current total \cost. Assume that the firm's production function exhibits increa\sing returns to scale.

A. ₦2,400

B. ₦2,880

Correct C. ₦3,360

D. ₦3,840

Correct Answer: C

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Question 20

A country's GDP is given by the equation GDP = C + I + G + $ X - M $. If the country's current values are C = 100, I = 50, G = 75, X = 150, and M = 50, calculate the country's GDP.

A. ₦325

B. ₦375

C. ₦425

Correct D. ₦475

Correct Answer: D

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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, and it is currently producing 100 units of output, what is the firm's current profit-maximizing input combination?

A. (L, K) = (100, 100)

Correct B. (L, K) = (200, 50)

C. (L, K) = (50, 200)

D. (L, K) = (0, 0)

Correct Answer: B

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Question 22

A country's GDP is 100 billion naira, and its GNP is 120 billion naira. What is the country's net factor income from abroad?

Correct A. 20 billion naira

B. 30 billion naira

C. 40 billion naira

D. 50 billion naira

Correct Answer: A

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Question 23

A firm's production function is given by Q = 3L^0.6K^0.4. If the firm's current input prices are w = 15 and r = 25, and it is currently producing 150 units of output, what is the firm's current profit-maximizing input combination?

A. (L, K) = (150, 150)

Correct B. (L, K) = (200, 100)

C. (L, K) = (100, 200)

D. (L, K) = (0, 0)

Correct Answer: B

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Question 24

A country's balance of payments is given by the following equation: BOP = X - M - $ GNP - C $. If the country's X = 100 billion naira, M = 80 billion naira, and GNP - C = 20 billion naira, what is the country's balance of payments?

Correct A. -40 billion naira

B. -20 billion naira

C. 0 billion naira

D. 20 billion naira

Correct Answer: A

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Question 25

A firm's production function is given by Q = 2L^0.7K^0.3. If the firm's current input prices are w = 12 and r = 22, and it is currently producing 120 units of output, what is the firm's current profit-maximizing input combination?

A. (L, K) = (120, 120)

Correct B. (L, K) = (180, 90)

C. (L, K) = (90, 180)

D. (L, K) = (0, 0)

Correct Answer: B

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