POST UTME PAN-ATLANTIC UNIVERSITY 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Consider a market with the following supply and demand functions: Q^s = 2p - 100 and Q^d = 200 - 2p. What is the equilibrium price and quantity in this market?
A. p = 100, Q = 200
B. p = 150, Q = 250
C. p = 200, Q = 300
D. p = 250, Q = 350
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 10%
B. 12%
C. 15%
D. 18%
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦200 per unit, calculate the \cost-minimizing input combination for a level of output Q = 100 units.
A. L = 100 units, K = 50 units
B. L = 50 units, K = 100 units
C. L = 200 units, K = 100 units
D. L = 100 units, K = 200 units
Question 4
A firm's revenue function is given by R(Q) = 100Q - 0.1Q^2. If the firm produces 100 units of output, what is the total revenue?
A. ₦9,900
B. ₦9,500
C. ₦9,100
D. ₦8,900
Question 5
A country is experiencing a trade deficit of ₦100 billion. If the country's GDP is ₦500 billion, what is the trade deficit as a percentage of GDP?
A. 20%
B. 30%
C. 40%
D. 50%
Question 6
A monopolist faces a demand curve given by P = 100 - 2Q. The firm's marginal \cost (MC) is given by MC = 20 + 0.5Q. If the firm produces 50 units of output, what is the profit-maximizing price?
A. ₦80
B. ₦90
C. ₦100
D. ₦110
Question 7
A firm's revenue function is given by R = 100Q - 2Q^2. If the firm's output is increased by 20%, what is the percentage change in revenue?
A. 10%
B. 12%
C. 15%
D. 18%
Question 8
A firm is producing a product with a marginal revenue of ₦100 and a marginal \cost of ₦80. If the price elasticity of demand is 0.5, what is the price at which the firm should produce the product?
A. ₦10
B. ₦20
C. ₦30
D. ₦40
Question 9
A consumer's indifference curve is given 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 ₦3 respectively, what is the consumer's optimal bundle?
A. (x,y) = (10,20)
B. (x,y) = (20,10)
C. (x,y) = (15,15)
D. (x,y) = (5,5)
Question 10
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, what is the price at which the quantity demanded is 50?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 11
A country's balance of payments is given by the equation BOP = \( X - M \) + \( F - I \). If the country's exports (X) are ₦1000, imports (M) are ₦800, foreign investment (F) is ₦500, and domestic investment (I) is ₦300, what is the country's balance of payments?
A. ₦200
B. ₦300
C. ₦400
D. ₦500
Question 12
A monopolist faces a demand curve given by P = 100 - 2Q. The firm's marginal \cost (MC) is given by MC = 20 + 0.5Q. If the firm produces 50 units of output, what is the profit-maximizing price?
A. ₦80
B. ₦90
C. ₦100
D. ₦110
Question 13
A country's GNP is ₦120 billion. If the country's GDP is ₦100 billion and the net factor income from abroad is ₦20 billion, what is the country's GNP?
A. ₦100 billion
B. ₦110 billion
C. ₦120 billion
D. ₦130 billion
Question 14
A country is experiencing a balance of payments surplus of ₦100 billion. If the country's GDP is ₦500 billion, what is the balance of payments surplus as a percentage of GDP?
A. 20%
B. 30%
C. 40%
D. 50%
Question 15
A country's GDP is ₦100 billion. If the country's population is 20 million and the average GDP per capita is ₦5,000, what is the country's GDP per capita?
A. ₦2,500
B. ₦3,000
C. ₦4,000
D. ₦5,000

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