POST UTME SKYLINE UNIVERSITY 2024 Economics | Objective

Are you preparing for POST UTME SKYLINE UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2024 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
Consider a firm operating under cons\tant returns to scale. If the firm's production function is given by Q = 2L^2 + 3K^2, where Q is output, L is labor, and K is capital, what is the value of the marginal product of labor (MPL) when L = 4 and K = 3?
Correct A. 8
B. 12
C. 16
D. 20

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A country's GDP is ₦1,200 billion, its imports are ₦300 billion, and its exports are ₦250 billion. What is the country's balance of trade?
Correct A. ₦50 billion
B. ₦100 billion
C. ₦150 billion
D. ₦200 billion

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 2x + 3y = ₦100, and the price of good x is ₦5, what is the consumer's optimal bundle of goods?
A. x = 10, y = 10
Correct B. x = 15, y = 5
C. x = 20, y = 0
D. x = 0, y = 20

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A firm's production function is given by Q = 2L^2 + 3K^2, where Q is output, L is labor, and K is capital. If the firm's current production is Q = 100, and the price of labor is ₦10 per unit, what is the firm's optimal level of capital?
A. 10
B. 20
Correct C. 30
D. 40

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A country's GDP is ₦1,500 billion, its imports are ₦400 billion, and its exports are ₦350 billion. What is the country's current account balance?
Correct A. ₦50 billion
B. ₦100 billion
C. ₦150 billion
D. ₦200 billion

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
Consider a firm operating in a perfectly competitive market with a given demand curve \( D = 100 - 2p \) and a \cost function \( C = 50 + 5q \). If the firm produces 20 units, what is the profit-maximizing price?
A. ₦80
Correct B. ₦90
C. ₦100
D. ₦110

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A government wants to reduce poverty in a rural area by implementing a cash transfer program. The program provides a monthly stip\end of ₦10,000 to each beneficiary. If the program covers 10,000 beneficiaries, what is the total monthly \cost?
Correct A. ₦100,000,000
B. ₦120,000,000
C. ₦150,000,000
D. ₦180,000,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A firm's production function is given by \( Q = 10L^0.5K^0.5 \). If the firm increases labor by 20% and capital by 15%, what is the new level of production?
A. 12.5
B. 15
Correct C. 17.5
D. 20

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A country's GDP is ₦10 trillion, and its GNP is ₦12 trillion. What is the net factor income from abroad?
Correct A. ₦2 trillion
B. ₦1.5 trillion
C. ₦1 trillion
D. ₦0.5 trillion

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A firm's revenue function is given by \( R = 100p^2 \), and its \cost function is \( C = 50 + 5p \). What is the profit-maximizing price?
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 11
A firm's \cost function is given by C(q) = 2q^2 + 5q + 10. If the firm produces 20 units, what is the total \cost?
A. ₦150
B. ₦200
Correct C. ₦250
D. ₦300

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A government imposes a tax on a firm's output. The firm's supply curve shifts from S1 to S2. What is the effect on the equilibrium price?
A. Increase
Correct B. Decrease
C. No Change
D. Indeterminate

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A firm's revenue function is given by R(q) = 3q^2 - 2q + 10. If the firm produces 15 units, what is the total revenue?
A. ₦150
Correct B. ₦200
C. ₦250
D. ₦300

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A government imposes a tax on a firm's output. The firm's supply curve shifts from S1 to S2. What is the effect on the equilibrium quantity?
A. Increase
Correct B. Decrease
C. No Change
D. Indeterminate

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A firm's demand function is given by D(p) = 2p^2 - 5p + 10. If the price is ₦5, what is the quantity demanded?
A. 10
B. 15
Correct C. 20
D. 25

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A consumer's indifference curve is downward sloping and convex to the origin. What is the implication of this shape on the consumer's marginal rate of substitution (MRS)?
A. The MRS is cons\tant along the indifference curve.
B. The MRS increases as the consumer moves along the indifference curve.
Correct C. The MRS decreases as the consumer moves along the indifference curve.
D. The MRS is zero at the point of \tangency with the budget line.

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A country's economic growth is influenced by its investment in human capital. What is the primary channel through which human capital investment affects economic growth?
Correct A. Increased productivity of labor
B. Higher savings rates
C. Improved institutional quality
D. Increased foreign direct investment

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A firm's demand curve is downward sloping, and its marginal revenue (MR) curve lies above the demand curve. What is the implication of this relationship on the firm's profit-maximizing output level?
Correct A. The firm will produce at the point where MR = MC
B. The firm will produce at the point where MR = 0
C. The firm will produce at the point where MC = 0
D. The firm will not produce at all

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A country's agricultural sector is characterized by a high degree of price inelasticity of demand. What is the likely effect of a government-imposed price ceiling on the agricultural sector?
A. Increased production and employment
Correct B. Decreased production and employment
C. No effect on production and employment
D. Increased imports of agricultural products

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A firm's production function is given by Q = 2L^0.5K^0.5. What is the firm's marginal product of labor (MPL) when L = 4 and K = 9?
A. 1
Correct B. 2
C. 3
D. 4

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C = 500 + 5Q. If the monopolist produces 40 units, what is the profit-maximizing price?
A. ₦50
Correct B. ₦60
C. ₦70
D. ₦80

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm uses 16 units of labor and 9 units of capital, what is the marginal product of labor?
A. 1.5
B. 2.5
Correct C. 3.5
D. 4.5

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A country's import demand function is given by M = 100 - 2Y + 3P. If the country's income is ₦100,000 and the price of imports is ₦20, how many units of imports will be demanded?
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 24
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm uses 16 units of labor and 9 units of capital, what is the marginal product of capital?
A. 0.5
B. 1.5
Correct C. 2.5
D. 3.5

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A country's export supply function is given by X = 50 + 2Y - 3P. If the country's income is ₦100,000 and the price of exports is ₦20, how many units of exports will be supplied?
A. 30
B. 40
Correct C. 50
D. 60

Correct Answer: C

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