POST UTME UNILAG 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's balance of payments is in equilibrium when the value of its imports equals the value of its exports. Which of the following is a correct statement about the balance of payments equilibrium?
A. The balance of payments equilibrium implies that the country has a trade deficit.
B. The balance of payments equilibrium implies that the country has a trade surplus.
C. The balance of payments equilibrium implies that the country's imports and exports are equal in value.
D. The balance of payments equilibrium implies that the country has a trade deficit and a capital surplus.
Question 2
A firm's demand function is given by Q = 100 - 2P. If the firm's \cost function is given by C = 50 + 5Q, calculate the profit-maximizing price and quantity.
A. P = ₦20, Q = 60
B. P = ₦30, Q = 40
C. P = ₦40, Q = 20
D. P = ₦50, Q = 10
Question 3
A firm's demand function is given by Qd = 100 - 2P + 3Y, where Qd is the quantity demanded, P is the price, and Y is the income. If the price is 20 and the income is 50, what is the quantity demanded?
A. 60
B. 70
C. 80
D. 90
Question 4
Determine the price elasticity of demand for a product whose price elasticity of demand is 0.8 and the quantity demanded is 100 units when the price is ₦120.
A. 0.6
B. 0.8
C. 1.2
D. 1.5
Question 5
A country's GDP is ₦100 billion, its imports are ₦20 billion, and its exports are ₦30 billion. What is the country's net foreign income?
A. ₦10 billion
B. ₦20 billion
C. ₦30 billion
D. ₦40 billion
Question 6
A firm's production function is given by Q = 2L + 3K, where Q is the output, L is the labor, and K is the capital. If the firm wants to produce 100 units of output, how many units of labor and capital should it use?
A. L = 20, K = 30
B. L = 30, K = 20
C. L = 40, K = 15
D. L = 15, K = 40
Question 7
A consumer's utility function is given by U = 2x + 3y. If the prices of x and y are ₦5 and ₦10 respectively, and the consumer's income is ₦100, calculate the optimal consumption bundle.
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 0
D. x = 0, y = 15
Question 8
A central bank implements a monetary policy aimed at reducing inflation. U\sing the Phillips curve, determine the effect on the unemployment rate.
A. The unemployment rate will increase.
B. The unemployment rate will decrease.
C. The unemployment rate will remain unchanged.
D. The effect on the unemployment rate is ambiguous.
Question 9
A country's GDP is given by GDP = C + I + G + \( X - M \), where C is the consumption, I is the investment, G is the government sp\ending, X is the exports, and M is the imports. If the country's consumption is 100, investment is 50, government sp\ending is 75, exports are 150, and imports are 100, what is the country's GDP?
A. 225
B. 250
C. 275
D. 300
Question 10
A country's GDP is given by GDP = C + I + G + \( X - M \), where C is the consumption, I is the investment, G is the government sp\ending, X is the exports, and M is the imports. If the country's consumption is 100, investment is 50, government sp\ending is 75, exports are 150, and imports are 100, what is the country's GDP?
A. 225
B. 250
C. 275
D. 300
Question 11
A country's GDP is ₦1,500 billion, and its GNP is ₦1,600 billion. What is the net factor income from abroad?
A. ₦100 billion
B. ₦50 billion
C. ₦0 billion
D. ₦-50 billion
Question 12
A firm's demand function is given by Q = 100 - 2P. If the firm's \cost function is given by C = 50 + 5Q, calculate the profit-maximizing price and quantity.
A. P = ₦20, Q = 60
B. P = ₦30, Q = 40
C. P = ₦40, Q = 20
D. P = ₦50, Q = 10
Question 13
A firm's production function is given by Q = 100 + 2L + 3K, where L is labor and K is capital. If the firm increases its labor input from 50 units to 60 units, and its capital input from 20 units to 30 units, what is the resulting change in output?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 14
A country's GDP is given by the equation GDP = C + I + G + \( X - M \). If the country's consumption, investment, government sp\ending, exports, and imports are 100, 50, 20, 80, and 60 respectively, what is the country's GDP?
A. ₦250
B. ₦300
C. ₦350
D. ₦400
Question 15
A government imposes a tax of ₦10 per unit on a firm that produces a good with a price elasticity of demand of 0.5. What is the effect of the tax on the firm's supply curve?
A. The supply curve shifts to the left.
B. The supply curve shifts to the right.
C. The supply curve remains unchanged.
D. The supply curve becomes perfectly elastic.

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