POST UTME UI 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm has a production function given by Q = 2L + 3K and a \cost function C = 100 + 5L + 10K. U\sing the marginal productivity rule, find the optimal input combination.
A. L = 10, K = 5
B. L = 5, K = 10
C. L = 15, K = 3
D. L = 3, K = 15
Question 2
The government of Nigeria has introduced a new tax policy aimed at increa\sing revenue from the informal sector. The policy requires all bu\sinesses with annual turnover above ₦5 million to register and pay taxes. However, the policy has been met with resis\tance from some bu\siness owners who argue that it will increase their \costs and reduce their competitiveness. U\sing the concept of opportunity \cost, explain why the government's policy may be justified.
A. The government's policy will lead to a decrease in the opportunity \cost of tax evasion, making it more attractive for bu\sinesses to evade taxes.
B. The government's policy will increase the opportunity \cost of tax evasion, making it less attractive for bu\sinesses to evade taxes.
C. The government's policy will have no impact on the opportunity \cost of tax evasion.
D. The government's policy will lead to a decrease in the opportunity \cost of tax compliance, making it more attractive for bu\sinesses to comply with taxes.
Question 3
A country's money supply is $100 billion, and the velocity of money is 2. If the country's GDP is $200 billion, what is the likely effect on the price level?
A. The price level will increase.
B. The price level will decrease.
C. The price level will remain unchanged.
D. The effect on the price level is uncertain.
Question 4
The demand for a product is given by the equation Qd = 100 - 2P. If the price of the product is currently 20, what is the quantity demanded?
A. 30
B. 40
C. 50
D. 60
Question 5
A consumer has an indifference curve given by U = 2x + 3y and a budget constraint given by 2x + 3y = 12. Find the consumer's optimal bundle.
A. x = 2, y = 4
B. x = 3, y = 3
C. x = 4, y = 2
D. x = 5, y = 1
Question 6
Consider a firm operating in a perfectly competitive market. If the firm's average \cost curve intersects the demand curve at a point where the firm is producing at the minimum of the average variable \cost curve, what is the likely outcome for the firm's profit?
A. The firm will experience a loss.
B. The firm will break even.
C. The firm will earn a normal profit.
D. The firm will earn an economic profit.
Question 7
The Central Bank of Nigeria (CBN) uses monetary policy tools to control inflation. Which of the following tools is NOT a monetary policy tool?
A. Open Market Operations (OMO)
B. Reserve Requirements
C. Fiscal Policy
D. Monetary Policy Committee (MPC)
Question 8
The demand for a commodity is said to be inelastic if a large change in price leads to a small change in quantity demanded. Which of the following is a characteristic of an inelastic demand?
A. A small change in price leads to a small change in quantity demanded
B. A large change in price leads to a small change in quantity demanded
C. A small change in price leads to a large change in quantity demanded
D. A large change in price leads to a large change in quantity demanded
Question 9
A country's GDP can be calculated u\sing the formula: GDP = C + I + G + \( X - M \). If the country's current GDP is 100 billion, and the current values of C, I, G, X, and M are 20, 30, 10, 40, and 20 respectively, what is the value of the country's net exports?
A. 10
B. 20
C. 30
D. 40
Question 10
In a perfectly competitive market, the supply curve is upward-sloping because
A. Firms are willing to supply more at higher prices
B. Firms are willing to supply less at lower prices
C. Firms are willing to supply more at lower prices
D. Firms are willing to supply less at higher prices
Question 11
A consumer has a budget constraint of $100 and a preference for two goods: X and Y. The prices of X and Y are $20 and $30, respectively. If the consumer sp\ends the entire budget on good X, what is the opportunity \cost of good Y?
A. $10
B. $20
C. $30
D. $40
Question 12
A country's GDP is ₦100 billion. If the country's population is 20 million, what is the per capita GDP?
A. ₦5,000
B. ₦10,000
C. ₦20,000
D. ₦50,000
Question 13
The concept of opportunity \cost is closely related to the concept of scarcity. Which of the following is a correct statement about opportunity \cost?
A. Opportunity \cost is the \cost of producing a good or service
B. Opportunity \cost is the benefit of producing a good or service
C. Opportunity \cost is the \cost of not producing a good or service
D. Opportunity \cost is the benefit of not producing a good or service
Question 14
The concept of scarcity is closely related to the concept of opportunity \cost. Which of the following is a correct statement about scarcity?
A. Scarcity is the \cost of producing a good or service
B. Scarcity is the benefit of producing a good or service
C. Scarcity is the \cost of not producing a good or service
D. Scarcity is the benefit of not producing a good or service
Question 15
The Agricultural sector is a major contributor to Nigeria's GDP. Which of the following is a major challenge facing the agricultural sector in Nigeria?
A. Lack of access to credit
B. Lack of access to markets
C. Lack of access to techno\logy
D. All of the above

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