POST UTME OSUSTECH 2019 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 2019 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
The following table shows the production of maize in Nigeria from 2010 to 2018. Calculate the average annual growth rate of maize production u\sing the compound annual growth rate (CAGR) formula.
Correct A. \( left\( \frac{12.5}{10} \right \ \)^{\frac{1}{8}} - 1 )
B. \( left\( \frac{12.5}{10} \right \ \)^{\frac{1}{9}} - 1 )
C. \( left\( \frac{12.5}{10} \right \ \)^{\frac{1}{10}} - 1 )
D. \( left\( \frac{12.5}{10} \right \ \)^{\frac{1}{11}} - 1 )

Correct Answer: A

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Question 2
A monopolist faces a demand curve given by \( Q = 100 - 2P \) and a \cost function \( C = 50 + 10Q \). Find the profit-maximizing price and quantity.
A. \( P = 20, Q = 40 \)
Correct B. \( P = 30, Q = 50 \)
C. \( P = 40, Q = 60 \)
D. \( P = 50, Q = 70 \)

Correct Answer: B

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Question 3
A consumer has the following utility function: \( U = 2x + 3y \). The prices of x and y are \( P_x = 2 \) and \( P_y = 3 \), respectively. Find the consumer's budget constraint.
A. \( 2x + 3y = 6 \)
Correct B. \( 2x + 3y = 12 \)
C. \( 2x + 3y = 18 \)
D. \( 2x + 3y = 24 \)

Correct Answer: B

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Question 4
A firm has the following production function: \( Q = 10L^{\frac{1}{2}}K^{\frac{1}{2}} \). The prices of labor and capital are \( P_L = 10 \) and \( P_K = 20 \), respectively. Find the firm's \cost function.
Correct A. \( C = 10L^{\frac{1}{2}}K^{\frac{1}{2}} + 20L + 40K \)
B. \( C = 10L^{\frac{1}{2}}K^{\frac{1}{2}} + 20L + 80K \)
C. \( C = 10L^{\frac{1}{2}}K^{\frac{1}{2}} + 40L + 80K \)
D. \( C = 10L^{\frac{1}{2}}K^{\frac{1}{2}} + 80L + 160K \)

Correct Answer: A

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Question 5
A country's GDP is given by \( GDP = 100 + 20Y \), where Y is the country's income. If the country's income is \( Y = 500 \), find the country's GDP.
A. \( GDP = 100 + 20\( 500 \ \) = 1100 )
Correct B. \( GDP = 100 + 20\( 500 \ \) = 1200 )
C. \( GDP = 100 + 20\( 500 \ \) = 1300 )
D. \( GDP = 100 + 20\( 500 \ \) = 1400 )

Correct Answer: B

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Question 6
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor and K is capital. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the marginal product of labor (MPL) when the firm is producing 12 units of output?
A. 4
Correct B. 6
C. 8
D. 10

Correct Answer: B

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Question 7
A government imposes a tax on a firm's output. The firm's supply curve shifts to the left. What is the effect of this tax on the firm's profit-maximizing output and price?
A. The firm's profit-maximizing output and price increase.
Correct B. The firm's profit-maximizing output and price decrease.
C. The firm's profit-maximizing output increases, but the price decreases.
D. The firm's profit-maximizing output decreases, but the price increases.

Correct Answer: B

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Question 8
A monopolist faces a demand curve given by P = 100 - 2Q. The firm's marginal \cost (MC) is given by MC = 10 + 2Q. What is the monopolist's profit-maximizing quantity and price?
A. Q = 20, P = 80
Correct B. Q = 30, P = 70
C. Q = 40, P = 60
D. Q = 50, P = 50

Correct Answer: B

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Question 9
A firm's revenue function is given by R(Q) = 100Q - 2Q^2. The firm's \cost function is given by C(Q) = 10Q + 5Q^2. What is the firm's profit-maximizing quantity?
A. Q = 5
Correct B. Q = 10
C. Q = 15
D. Q = 20

Correct Answer: B

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Question 10
A government imposes a tax on a firm's output. The firm's supply curve shifts to the left. What is the effect of this tax on the firm's profit-maximizing output and price?
A. The firm's profit-maximizing output and price increase.
Correct B. The firm's profit-maximizing output and price decrease.
C. The firm's profit-maximizing output increases, but the price decreases.
D. The firm's profit-maximizing output decreases, but the price increases.

Correct Answer: B

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Question 11
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, find the percentage change in quantity demanded when the price increases by 10%.
Correct A. -20%
B. -10%
C. 0%
D. 10%

Correct Answer: A

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Question 12
A farmer has 100 hectares of land to cultivate two crops, maize and beans. The marginal product of maize is 20 tons per hectare, and the marginal product of beans is 15 tons per hectare. If the farmer wants to maximize profit, how many hectares should be allocated to each crop?
Correct A. Maize: 60 hectares, Beans: 40 hectares
B. Maize: 50 hectares, Beans: 50 hectares
C. Maize: 40 hectares, Beans: 60 hectares
D. Maize: 30 hectares, Beans: 70 hectares

Correct Answer: A

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Question 13
A government wants to reduce the budget deficit by increa\sing taxes. If the tax rate is increased from 20% to 25%, and the tax base remains cons\tant, what is the percentage change in tax revenue?
A. -10%
Correct B. -5%
C. 0%
D. 5%

Correct Answer: B

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Question 14
A consumer has a utility function U(x, y) = 2x + 3y, where x and y are the quantities of two goods. If the prices of the goods are $2 and $3, respectively, and the consumer has a budget of $10, find the optimal quantities of the goods.
Correct A. x = 2, y = 2
B. x = 3, y = 1
C. x = 4, y = 0
D. x = 0, y = 3

Correct Answer: A

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Question 15
A firm has a production function Q = 2L + 3K, where Q is the output, L is the labor, and K is the capital. If the firm wants to produce 20 units of output, and the wage rate is $10 per hour, and the rental rate of capital is $5 per hour, find the optimal quantities of labor and capital.
Correct A. L = 5, K = 5
B. L = 10, K = 3
C. L = 15, K = 1
D. L = 20, K = 0

Correct Answer: A

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Question 16
Consider a country with a mixed economy, where the government plays a significant role in the production and distribution of goods and services. Analyze the impact of government intervention on the efficiency of resource allocation in the economy.
A. Government intervention leads to a more efficient allocation of resources, as it allows for the correction of market failures.
Correct B. Government intervention leads to a less efficient allocation of resources, as it distorts market signals and creates inefficiencies.
C. Government intervention has no impact on the efficiency of resource allocation, as it is determined by market forces.
D. Government intervention leads to a more efficient allocation of resources, but only in the short run.

Correct Answer: B

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Question 17
A firm is considering the introduction of a new product. The product has a fixed \cost of ₦100,000 and a variable \cost of ₦50 per unit. The selling price of the product is ₦75 per unit. If the firm expects to sell 10,000 units of the product, what is the minimum price it should charge to break even?
A. ₦60
B. ₦65
Correct C. ₦70
D. ₦75

Correct Answer: C

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Question 18
A country's GDP is ₦1,000,000,000,000, and its population is 200,000,000. What is the country's GDP per capita?
A. ₦5,000
Correct B. ₦10,000
C. ₦20,000
D. ₦50,000

Correct Answer: B

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Question 19
A firm is producing a good u\sing two inputs, labor and capital. The production function is given by Q = 2L^0.5K^0.5, where Q is the quantity of output, L is the amount of labor, and K is the amount of capital. If the firm is currently producing 100 units of output u\sing 4 units of labor and 9 units of capital, what is the marginal product of labor?
A. 0.5
B. 1
Correct C. 2
D. 4

Correct Answer: C

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Question 20
A country is experiencing a recession, and the government is considering implementing a fiscal policy to stimulate the economy. Analyze the potential effects of a tax cut on the economy, including the impact on aggregate demand and the potential for inflation.
Correct A. A tax cut will increase aggregate demand and lead to higher inflation.
B. A tax cut will decrease aggregate demand and lead to lower inflation.
C. A tax cut will have no impact on aggregate demand or inflation.
D. A tax cut will increase aggregate demand, but only in the short run.

Correct Answer: A

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Question 21
A firm's \cost function is given by C(q) = 2q^2 + 10q + 100. If the firm's revenue function is R(q) = 20q, what is the profit-maximizing quantity of output?
A. 5 units
Correct B. 10 units
C. 15 units
D. 20 units

Correct Answer: B

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Question 22
A government wants to reduce the budget deficit by increa\sing taxes. If the government increases the tax rate from 20% to 25%, what is the new tax revenue?
A. ₦100,000
Correct B. ₦125,000
C. ₦150,000
D. ₦175,000

Correct Answer: B

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Question 23
A firm's demand function is given by Q = 100 - 2P. If the firm's marginal revenue function is MR = 200 - 2Q, what is the price elasticity of demand?
A. 0.5
B. 1.0
Correct C. 2.0
D. 3.0

Correct Answer: C

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Question 24
A government wants to increase the supply of a good by reducing the price. If the supply function is given by Q = 50 + 2P and the price elasticity of supply is 2.0, what is the new price?
A. ₦10
B. ₦20
Correct C. ₦30
D. ₦40

Correct Answer: C

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Question 25
A firm's \cost function is given by C(q) = 3q^2 + 20q + 100. If the firm's revenue function is R(q) = 30q, what is the profit-maximizing quantity of output?
A. 5 units
B. 10 units
Correct C. 15 units
D. 20 units

Correct Answer: C

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