POST UTME SUMMIT UNIVERSITY 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm has a total revenue function given by TR = 2Q^2 - 10Q + 100 and a total \cost function given by TC = Q^2 + 5Q + 50. What is the profit-maximizing quantity of output?
A. 5
B. 10
C. 15
D. 20
Question 2
A government imposes a tax of ₦10 per unit on a commodity. If the supply curve is given by Qs = 2P and the demand curve is given by Qd = 100 - 2P, what is the new equilibrium price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 3
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the firm's current input levels are L = 4 and K = 9, what is the firm's current output level?
A. Q = 12
B. Q = 18
C. Q = 24
D. Q = 36
Question 4
A firm's demand curve is given by Q = 100 - 2P. If the firm's marginal revenue (MR) is 80, find the price at which the firm will produce 50 units.
A. 20
B. 30
C. 40
D. 50
Question 5
A government imposes a tax of ₦10 per unit on a commodity. If the supply curve is given by Qs = 2P and the demand curve is given by Qd = 100 - 2P, what is the new equilibrium quantity?
A. 20
B. 30
C. 40
D. 50
Question 6
A country's balance of payments is given by the equation \( BOP = X - M \), where X is the value of exports and M is the value of imports. If the country's exports are ₦1000 and its imports are ₦800, what is the country's balance of payments?
A. ₦200
B. ₦300
C. ₦400
D. ₦500
Question 7
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 total \cost of producing 16 units of output.
A. ₦4000
B. ₦8000
C. ₦12000
D. ₦16000
Question 8
The Nigerian government has implemented policies to promote agricultural development. Which of the following is a likely consequence of these policies?
A. Increased food production
B. Reduced agricultural exports
C. Increased agricultural imports
D. Decreased agricultural employment
Question 9
A consumer's utility function is given by U = 2x^0.5y^0.5. If the price of good x is ₦50 per unit and the price of good y is ₦75 per unit, calculate the consumer's budget constraint.
A. x + 3y = 6
B. 2x + 3y = 12
C. x + 2y = 6
D. 2x + y = 6
Question 10
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. (10, 20)
B. (20, 10)
C. (15, 15)
D. (25, 5)
Question 11
A government imposes a tax of 10% on a good. If the price of the good is 100 naira, what is the new price after the tax?
A. 90 naira
B. 100 naira
C. 110 naira
D. 120 naira
Question 12
A country's demand for a good is given by the equation \( Q_d = 100 - 2P \) and the supply is given by \( Q_s = 2P - 100 \). If the government imposes a tax of ₦10 on the good, what will be the new equilibrium price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 13
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 firm's marginal \cost of producing 16 units of output.
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 14
A firm's production function exhibits cons\tant returns to scale. If the firm's current output is 100 units and it increases its inputs by 20%, what will be the new output?
A. 120 units
B. 100 units
C. 80 units
D. 140 units
Question 15
A monopolistically competitive firm faces a downward-sloping demand curve. What is the likely effect of an increase in the firm's fixed \costs?
A. Increase in price
B. Decrease in quantity supplied
C. Increase in quantity supplied
D. No change in price

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: