POST UTME OAU 2023 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 2023 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
Determine the elasticity of demand for a product with a price elasticity of 0.5, given that the price of the product has increased by 10%.
A. Inelastic demand
B. Unit elastic demand
Correct C. Elastic demand
D. Perfectly inelastic demand

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A firm's revenue function is given by R(x) = 2x^2 + 10x. If the firm's fixed \cost is ₦500, determine the profit-maximizing level of output.
A. x = 5
Correct B. x = 10
C. x = 15
D. x = 20

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A country's GDP is ₦1.5 trillion. If the country's population is 200 million, determine the per capita income.
Correct A. ₦7,500
B. ₦7,500
C. ₦7,500
D. ₦7,500

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A firm's \cost function is given by C(x) = 2x^2 + 10x. If the firm's revenue function is R(x) = 3x^2 + 5x, determine the profit-maximizing level of output.
A. x = 5
Correct B. x = 10
C. x = 15
D. x = 20

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A country's balance of payments account shows a trade deficit of ₦500 billion. If the country's GDP is ₦1.5 trillion, determine the current account balance.
A. ₦1 trillion
Correct B. ₦500 billion
C. ₦0
D. ₦-500 billion

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is given by Qd = 100 - P and the supply curve is given by Qs = 10 + 2P, find the equilibrium price and quantity.
A. P = 45, Q = 55
Correct B. P = 50, Q = 50
C. P = 55, Q = 45
D. P = 60, Q = 40

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A firm is producing a good u\sing two inputs, labor (L) and capital (K). The production function is given by Q = 2L^0.4K^0.6. If the prices of labor and capital are $10 and $20 respectively, and the firm wants to maximize its profit, find the optimal levels of labor and capital.
Correct A. L = 10, K = 5
B. L = 5, K = 10
C. L = 15, K = 3
D. L = 20, K = 2

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A country is experiencing a trade deficit due to a decrease in exports and an increase in imports. The country's balance of payments is given by the following equation: BOP = X - M, where X is the value of exports and M is the value of imports. If the value of exports is $100 and the value of imports is $120, find the balance of payments.
Correct A. -20
B. 20
C. 40
D. 60

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A firm is facing a downward-sloping demand curve given by Qd = 100 - P. The firm's marginal revenue (MR) is given by MR = 100 - 2P. Find the firm's optimal price and quantity.
A. P = 50, Q = 50
Correct B. P = 45, Q = 55
C. P = 40, Q = 60
D. P = 35, Q = 65

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A country is experiencing a recession due to a decrease in aggregate demand. The country's aggregate demand curve is given by AD = 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 values of C, I, G, X, and M are $500, $100, $200, $150, and $120 respectively, find the aggregate demand.
A. 1000
Correct B. 1100
C. 1200
D. 1300

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input levels are L = 4 and K = 9, what is the marginal product of labor (MPL) when the firm is producing at the current input levels?
Correct A. 0.5
B. 1
C. 2
D. 3

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A perfectly competitive market has a demand curve given by P = 100 - 2Q and a supply curve given by P = 20 + 3Q. What is the equilibrium price and quantity?
Correct A. P = 40, Q = 20
B. P = 60, Q = 30
C. P = 80, Q = 40
D. P = 100, Q = 50

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A consumer has a utility function given by U = 2x + 3y. If the consumer's budget constraint is 10x + 20y = 100, what is the optimal bundle of x and y?
Correct A. x = 2, y = 3
B. x = 3, y = 2
C. x = 4, y = 1
D. x = 5, y = 0

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A firm is considering two production techno\logies: a traditional techno\logy with a production function Q = 2L^0.5K^0.5 and a new techno\logy with a production function Q = 3L^0.7K^0.3. If the firm's current input levels are L = 4 and K = 9, which techno\logy has a higher marginal product of labor (MPL)?
A. Traditional techno\logy
Correct B. New techno\logy
C. Both techno\logies have the same MPL
D. Neither techno\logy has a higher MPL

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A government is considering two economic development strategies: a strategy that focuses on increa\sing the country's human capital and a strategy that focuses on increa\sing the country's physical capital. If the country's current human capital is 50% and physical capital is 30%, which strategy is more likely to lead to economic growth?
Correct A. Increa\sing human capital
B. Increa\sing physical capital
C. Both strategies are equally likely to lead to economic growth
D. Neither strategy is likely to lead to economic growth

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost (MC) is 10. If the firm's price elasticity of demand is 2, what is the profit-maximizing price?
A. 20
Correct B. 30
C. 40
D. 50

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A country's GDP is 100 billion naira. The government imposes a 10% tax on all goods and services. If the tax revenue is 5 billion naira, what is the country's GNP?
A. 95
B. 100
Correct C. 105
D. 110

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A consumer's utility function is given by U = 2x + 3y. If the consumer's income is 100 naira and the prices of x and y are 5 naira and 10 naira respectively, what is the consumer's optimal bundle?
A. (10, 20)
Correct B. (20, 10)
C. (30, 5)
D. (5, 30)

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A firm's demand curve is given by Q = 100 - 2P. The firm's marginal \cost (MC) is 10. If the firm's price elasticity of demand is 2, what is the profit-maximizing quantity?
A. 20
B. 30
Correct C. 40
D. 50

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A country's GDP is 100 billion naira. The government imposes a 10% tax on all goods and services. If the tax revenue is 5 billion naira, what is the country's GNP?
A. 95
B. 100
Correct C. 105
D. 110

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
The Central Bank of Nigeria (CBN) has implemented a monetary policy aimed at reducing inflation. The policy involves increa\sing the reserve requirement for commercial banks. What is the likely effect of this policy on the money supply?
A. The money supply will increase, leading to higher inflation.
Correct B. The money supply will decrease, leading to lower inflation.
C. The money supply will remain unchanged.
D. The policy will have no effect on the money supply.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A firm is producing a good with a production function Q = 2L^0.5K^0.5, where L is labor and K is capital. If the firm increases labor from 100 to 121 units, and capital remains cons\tant at 400 units, what is the percentage change in output?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
The government of Nigeria has introduced a new tax on luxury goods. The tax rate is 20% of the price of the good. If the price of a luxury good increases from ₦1000 to ₦1200, what is the percentage change in the tax revenue?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A farmer is producing wheat u\sing a production function Q = 100L^0.5K^0.5, where L is labor and K is capital. If the farmer increases labor from 100 to 121 units, and capital remains cons\tant at 400 units, what is the percentage change in output?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
The demand for a good is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the price increases from ₦10 to ₦15, what is the percentage change in quantity demanded?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support