POST UTME UNILORIN 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer has a budget of ₦1,000 and faces the following prices: good A = ₦200, good B = ₦300, and good C = ₦400. U\sing the budget constraint, find the consumer's optimal bundle of goods A and B.
A. The consumer will choose 2 units of good A and 1 unit of good B.
B. The consumer will choose 1 unit of good A and 2 units of good B.
C. The consumer will choose 3 units of good A and 0 units of good B.
D. The consumer will choose 0 units of good A and 3 units of good B.
Question 2
A firm is considering investing in a new project with a net present value (NPV) of ₦1,000. The firm's \cost of capital is 10%. U\sing the NPV rule, explain whether the firm should invest in the project.
A. The firm should invest in the project because the NPV is positive.
B. The firm should not invest in the project because the NPV is negative.
C. The firm should invest in the project because the NPV is equal to the \cost of capital.
D. The firm should not invest in the project because the NPV is less than the \cost of capital.
Question 3
The government of a country imposes a tax on imports to reduce the trade deficit. However, the tax also increases the \cost of production for domestic firms. U\sing the concept of opportunity \cost, explain how the tax affects the production possibilities frontier (PPF) of the country.
A. The tax shifts the PPF inward, reducing the production possibilities of the country.
B. The tax shifts the PPF outward, increa\sing the production possibilities of the country.
C. The tax has no effect on the PPF of the country.
D. The tax shifts the PPF outward, but also increases the opportunity \cost of producing one good over the other.
Question 4
The Nigerian government has implemented policies to promote agricultural development and industrialization. However, the country still faces significant challenges in achieving sustainable economic growth. Which of the following is a major constraint to Nigeria's economic development?
A. Inadequate infrastructure
B. Corruption and poor governance
C. Lack of access to finance
D. Inadequate human capital
Question 5
A firm has a production function given by Q = 2L + 3K, where Q is the output, L is the labor input, and K is the capital input. If the firm uses 10 units of labor and 5 units of capital, what is the output?
A. 25
B. 25
C. 25
D. 25
Question 6
The demand for a commodity is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price is ₦50, what is the quantity demanded?
A. 50
B. 50
C. 50
D. 50
Question 7
U\sing the concept of returns to scale, explain why a firm's average \cost per unit of output decreases as it increases its production level.
A. Due to the law of diminishing marginal returns.
B. Because the firm is able to take advantage of economies of scale.
C. As a result of the firm's ability to negotiate better prices with suppliers.
D. Due to the firm's increased bargaining power with customers.
Question 8
A consumer's budget constraint is given by the equation 2x + 3y = 12. What is the consumer's opportunity \cost of consuming one more unit of good x?
A. 2
B. 3
C. 4
D. 5
Question 9
A country has a trade deficit of $100 million and a current account deficit of $200 million. U\sing the balance of payments identity, explain how these deficits affect the country's exchange rate.
A. The trade deficit and current account deficit lead to an appreciation of the exchange rate.
B. The trade deficit and current account deficit lead to a depreciation of the exchange rate.
C. The trade deficit and current account deficit have no effect on the exchange rate.
D. The trade deficit and current account deficit lead to a stable exchange rate.
Question 10
Consider a perfectly competitive market with a large number of firms producing a homogeneous product. If the market price falls by 10%, what will be the percentage change in the quantity supplied?
A. 0%
B. 5%
C. 10%
D. 15%
Question 11
A firm produces 100 units of a commodity at a \cost of ₦100 per unit. If the price of the commodity increases by 20%, what will be the new \cost per unit?
A. ₦120
B. ₦120
C. ₦120
D. ₦120
Question 12
A firm's \cost function is given by C = 100 + 2Q + 3Q^2, where C is the total \cost and Q is the quantity produced. If the firm produces 10 units, what is the total \cost?
A. 1000
B. 1200
C. 1500
D. 2000
Question 13
A central bank increases the reserve requirement for commercial banks. What is the likely effect on the money supply?
A. The money supply increases.
B. The money supply decreases.
C. The money supply remains unchanged.
D. The money supply becomes uncertain.
Question 14
U\sing the IS-LM model, explain how an increase in the money supply affects the interest rate and output in the short run.
A. The interest rate decreases and output increases.
B. The interest rate increases and output decreases.
C. The interest rate remains unchanged and output increases.
D. The interest rate remains unchanged and output decreases.
Question 15
A firm is producing a good with a production function given by Q = 2L^0.5K^0.5. The firm's \cost function is C = 10L + 20K. If the firm wants to minimize its \cost, what is the optimal value of L?
A. 10
B. 20
C. 30
D. 40

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