POST UTME OSUSTECH 2025 Economics | Objective

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Question 1
A firm's production function is given by Q = 2L + 3K. If the firm's output is 100 units and the price of labor is ₦10 per unit and the price of capital is ₦20 per unit, what is the firm's optimal combination of labor and capital?
A. L = 20, K = 30
B. L = 30, K = 20
C. L = 40, K = 10
D. L = 10, K = 40
Question 2
A country's balance of payments is in surplus if the value of its exports exceeds the value of its imports. Which of the following is a correct statement regarding the balance of payments?
A. A balance of payments surplus is a sign of a strong economy.
B. A balance of payments deficit is a sign of a strong economy.
C. A balance of payments surplus is a sign of a weak economy.
D. A balance of payments deficit is a sign of a weak economy.
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm hires 10 units of labor and 20 units of capital, what is the marginal product of labor?
A. 1
B. 2
C. 3
D. 4
Question 4
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are 16 and 9 units respectively, what is the total product of labor?
A. 32
B. 64
C. 128
D. 256
Question 5
A country's GDP is the sum of the value of all final goods and services produced within its borders. However, this measure does not account for the value of intermediate goods and services used in the production process. What is the name of the measure that includes the value of intermediate goods and services?
A. GDP
B. GDP (Gross Domestic Product)
C. GNP (Gross National Product)
D. GNI (Gross National Income)
Question 6
A monopolist's inverse demand function is given by P = 100 - 2Q. If the firm's marginal \cost is 20, what is the profit-maximizing price?
A. 80
B. 90
C. 100
D. 110
Question 7
A monopolist's inverse demand function is given by P = 100 - 2Q. If the firm's marginal \cost is 20, what is the profit-maximizing quantity?
A. 20
B. 30
C. 40
D. 50
Question 8
A firm's production function is represented by the equation \( Q = 2L + 3K \), where Q is the quantity produced, L is the labor and K is the capital. If the firm wants to produce 100 units of output, find the minimum amount of labor and capital it needs to hire.
A. L = 20, K = 30
B. L = 30, K = 20
C. L = 40, K = 10
D. L = 50, K = 5
Question 9
A country's import demand function is given by M = 100 - 2P + 3Y. If the price of imports is 50 and the country's income is 200, what is the quantity of imports demanded?
A. 150
B. 200
C. 250
D. 300
Question 10
A firm's demand function is represented by the equation \( Q = 100 - 2P \), where Q is the quantity demanded and P is the price. If the firm wants to maximize its revenue, find the price at which it should sell its product.
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 11
The government of Nigeria has implemented a policy to increase industrial production. Which of the following is a likely consequence of this policy?
A. An increase in the price of industrial products.
B. An increase in the production of industrial products.
C. A decrease in the price of industrial products.
D. A decrease in the production of industrial products.
Question 12
Consider a firm operating in a perfectly competitive market with a given production function Q = 2L^0.5K^0.5. If the price of the product is P = 100, and the wage rate is W = 20, what is the optimal level of labor (L) that the firm should hire to maximize its profit?
A. 10
B. 20
C. 30
D. 40
Question 13
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are 16 and 9 units respectively, what is the average product of labor?
A. 2
B. 4
C. 8
D. 16
Question 14
A country's GDP is calculated as the sum of the value of all final goods and services produced within its borders. If the country's GDP is ₦10,000,000,000 and the government sp\ends ₦2,000,000,000 on infrastructure, what is the country's national income?
A. ₦8,000,000,000
B. ₦10,000,000,000
C. ₦12,000,000,000
D. ₦14,000,000,000
Question 15
A country's export supply function is given by X = 50 + 2P - 3Y. If the price of exports is 70 and the country's income is 250, what is the quantity of exports supplied?
A. 150
B. 200
C. 250
D. 300

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