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POST UTME OSUSTECH 2017 Economics | Objective

Are you preparing for POST UTME OSUSTECH 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.

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Question 1

Calculate the value of the definite integral \( int_{0}^{2} \( 2x^2 + 3x - 1 \ \) dx ) u\sing the fundamental theorem of calculus.

Correct A. 4

B. 6

C. 8

D. 10

Correct Answer: A

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Question 2

A firm has a production function \( Q = 2L^{0.4}K^{0.6} \). If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and if the firm's budget constraint is ₦10,000, what is the optimal level 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

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Question 3

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

Correct A. ₦5,000

B. ₦10,000

C. ₦20,000

D. ₦50,000

Correct Answer: A

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Question 4

A firm is considering two different production techno\logies: one that produces 100 units of output per unit of labor and another that produces 200 units of output per unit of labor. If the price of labor is ₦100 per unit, which techno\logy should the firm choose?

A. Techno\logy 1

Correct B. Techno\logy 2

C. Both techno\logies are equally profitable

D. Neither techno\logy is profitable

Correct Answer: B

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Question 5

A consumer has the following utility function: \( U = 2x + 3y \). If the prices of x and y are ₦5 and ₦10 respectively, and if the consumer's budget is ₦100, what is the optimal level of x and y?

A. x = 10, y = 5

Correct B. x = 5, y = 10

C. x = 15, y = 3

D. x = 20, y = 2

Correct Answer: B

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Question 6

Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will be the effect on the firm's output?

Correct A. The firm will increase its output.

B. The firm will decrease its output.

C. The firm's output will remain unchanged.

D. The firm will exit the market.

Correct Answer: A

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Question 7

A consumer's indifference curve is represented by the equation u(x,y) = 2x + 3y. If the consumer's income is ₦1000, and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?

Correct A. (20, 10)

B. (15, 5)

C. (10, 2)

D. (5, 1)

Correct Answer: A

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Question 8

A firm is producing a good with a production function Q = 2L^0.5K^0.5. If the firm's current inputs are L = 4 and K = 9, what is the firm's current output?

A. 12

B. 15

Correct C. 18

D. 20

Correct Answer: C

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Question 9

A monopolist is facing a demand curve given by Q = 100 - 2P. If the firm's marginal \cost is MC = ₦10, what is the firm's optimal price?

A. ₦40

B. ₦50

Correct C. ₦60

D. ₦70

Correct Answer: C

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Question 10

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 ₦5 and ₦10 respectively, what is the consumer's optimal bundle?

Correct A. (20, 10)

B. (15, 5)

C. (10, 2)

D. (5, 1)

Correct Answer: A

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Question 11

A firm operating in a perfectly competitive market has a \cost function given by ( C(q) = 2q^2 + 5q + 10 ). If the market price is \( P = 10 \), and the firm's revenue function is ( R(q) = 10q ), what is the firm's profit-maximizing output level?

A. \( q = 1 \)

Correct B. \( q = 2 \)

C. \( q = 3 \)

D. \( q = 4 \)

Correct Answer: B

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Question 12

A government is considering a tax on a particular good. The supply curve for the good is given by ( S(p) = 2p ), and the demand curve is given by ( D(p) = 100 - p ). If the government imposes a tax of \( T = 5 \) on the producer, what will be the new equilibrium price?

A. \( p = 10 \)

B. \( p = 15 \)

Correct C. \( p = 20 \)

D. \( p = 25 \)

Correct Answer: C

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Question 13

A firm is considering two different investment projects. Project A has a \cost of \( C_A = 100,000 \) and a return of \( R_A = 120,000 \), while Project B has a \cost of \( C_B = 150,000 \) and a return of \( R_B = 180,000 \). Which project should the firm choose?

Correct A. Project A

B. Project B

C. Both projects are equally profitable

D. Neither project is profitable

Correct Answer: A

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Question 14

A central bank is considering a monetary policy to reduce inflation. The current inflation rate is \( pi = 5% \), and the central bank wants to reduce it to \( pi' = 3% \). If the central bank has a target interest rate of \( r = 5% \), what should be the new money supply?

A. \( M = 100,000 \)

Correct B. \( M = 120,000 \)

C. \( M = 150,000 \)

D. \( M = 200,000 \)

Correct Answer: B

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Question 15

A government is considering a budget that includes a tax on a particular good. The tax revenue is given by \( TR = 100,000 \), and the government wants to allocate it to different sectors. If the government wants to allocate ( 30% ) of the tax revenue to education, how much will be allocated to education?

Correct A. ( 30,000 )

B. ( 40,000 )

C. ( 50,000 )

D. ( 60,000 )

Correct Answer: A

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Question 16

The demand for a commodity is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the commodity is given by the equation Qs = 2P - 100, where Qs is the quantity supplied. If the equilibrium price is 50, what is the equilibrium quantity?

A. 200

B. 150

Correct C. 100

D. 50

Correct Answer: C

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Question 17

A firm has a production function given by Q = 2L^2 + 3K, where Q is the output, L is the labor and K is the capital. If the firm has 10 units of labor and 5 units of capital, what is the output?

A. 50

B. 60

Correct C. 70

D. 80

Correct Answer: C

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Question 18

A consumer has a utility function given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer has a budget of 100 and the prices of the two goods are 2 and 3 respectively, what is the optimal bundle of goods?

Correct A. x = 20, y = 30

B. x = 30, y = 20

C. x = 40, y = 10

D. x = 10, y = 40

Correct Answer: A

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Question 19

A country has a trade balance given by TB = 100 - 2X + 3M, where TB is the trade balance, X is the exports and M is the imports. If the country has exports of 50 and imports of 70, what is the trade balance?

A. 30

B. 40

Correct C. 50

D. 60

Correct Answer: C

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Question 20

A firm has a \cost function given by C = 2L + 3K, where C is the \cost, L is the labor and K is the capital. If the firm has 10 units of labor and 5 units of capital, what is the \cost?

A. 50

B. 60

Correct C. 70

D. 80

Correct Answer: C

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Question 21

Consider a firm operating in a perfectly competitive market. If the firm's marginal revenue (MR) curve intersects its marginal \cost (MC) curve at point E, and the price elasticity of demand is unit elastic at point E, what is the likely effect on the firm's output and price?

Correct A. The firm will increase output and decrease price.

B. The firm will decrease output and increase price.

C. The firm will increase output and increase price.

D. The firm will decrease output and decrease price.

Correct Answer: A

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Question 22

A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will happen to its quantity demanded?

A. The quantity demanded will increase.

Correct B. The quantity demanded will decrease.

C. The quantity demanded will remain the same.

D. The firm will not be able to change the quantity demanded.

Correct Answer: B

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Question 23

A firm is considering investing in a new project. The project has a net present value (NPV) of ₦100,000 and a \cost of ₦120,000. What is the likely decision of the firm?

A. The firm will accept the project.

Correct B. The firm will reject the project.

C. The firm will wait for more information.

D. The firm will not be able to make a decision.

Correct Answer: B

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Question 24

A firm is operating in a market with a high degree of monopoly power. If the firm increases its price, what will happen to its quantity demanded?

A. The quantity demanded will increase.

Correct B. The quantity demanded will decrease.

C. The quantity demanded will remain the same.

D. The firm will not be able to change the quantity demanded.

Correct Answer: B

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Question 25

A firm is considering investing in a new project. The project has a payback period of 5 years and a discount rate of 10%. What is the likely decision of the firm?

A. The firm will accept the project.

Correct B. The firm will reject the project.

C. The firm will wait for more information.

D. The firm will not be able to make a decision.

Correct Answer: B

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