POST UTME UNN 2022 Economics | Objective

Are you preparing for POST UTME UNN exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2022 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
Determine the equilibrium price and quantity of a commodity in a market where the demand function is given by Qd = 100 - 2P and the supply function is given by Qs = 2P - 10. Assume that the market is initially in equilibrium at a price of ₦50.
A. ₦60, 30 units
Correct B. ₦70, 40 units
C. ₦80, 50 units
D. ₦90, 60 units

Correct Answer: B

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Question 2
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's income is ₦100 and the prices of x and y are ₦20 and ₦30 respectively, determine the optimal quantities of x and y that the consumer will purchase.
Correct A. x = 2, y = 1
B. x = 3, y = 2
C. x = 4, y = 3
D. x = 5, y = 4

Correct Answer: A

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Question 3
A firm's total revenue function is given by TR = 100x - 2x^2, where x is the number of units sold. Determine the price elasticity of demand when the quantity sold is 20 units.
Correct A. 0.5
B. 1.0
C. 1.5
D. 2.0

Correct Answer: A

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Question 4
A government is considering a policy to reduce the price of a commodity by 10%. Determine the effect of this policy on the consumer's surplus.
A. ₦10
Correct B. ₦20
C. ₦30
D. ₦40

Correct Answer: B

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Question 5
A firm's \cost function is given by C(x) = 100 + 2x^2, where x is the number of units produced. Determine the marginal \cost when the quantity produced is 10 units.
A. ₦20
Correct B. ₦30
C. ₦40
D. ₦50

Correct Answer: B

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Question 6
A firm's demand for labor is given by the equation Qd = 1000L^\( -0.5 \), where Qd is the quantity of labor demanded and L is the wage rate. If the wage rate increases from ₦100 to ₦150, by what percentage will the quantity of labor demanded decrease?
A. 20%
Correct B. 30%
C. 40%
D. 50%

Correct Answer: B

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Question 7
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 value of exports increases from ₦500 million to ₦700 million and the value of imports remains cons\tant at ₦600 million, what is the new balance of payments?
A. +₦100 million
B. +₦200 million
Correct C. +₦300 million
D. +₦400 million

Correct Answer: C

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Question 8
A consumer's budget constraint is given by the equation I + C = 100, where I is the amount spent on imports and C is the amount spent on consumption. If the consumer sp\ends ₦50 on imports and ₦30 on consumption, what is the opportunity \cost of increa\sing imports by ₦10?
A. +₦5
Correct B. +₦10
C. +₦15
D. +₦20

Correct Answer: B

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Question 9
A firm's supply curve is given by the equation Qs = 2P^2, where Qs is the quantity supplied and P is the price. If the price increases from ₦10 to ₦20, by what percentage will the quantity supplied increase?
A. 50%
B. 60%
Correct C. 70%
D. 80%

Correct Answer: C

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Question 10
A country's trade balance is given by the equation TB = X - M, where X is the value of exports and M is the value of imports. If the value of exports increases from ₦500 million to ₦700 million and the value of imports remains cons\tant at ₦600 million, what is the new trade balance?
A. +₦100 million
B. +₦200 million
Correct C. +₦300 million
D. +₦400 million

Correct Answer: C

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Question 11
The Central Bank of Nigeria (CBN) uses monetary policy to control inflation. Which of the following instruments is most effective in reducing inflation in the short run?
A. Open Market Operations (OMO)
Correct B. Reserve Requirements
C. Discount Rate
D. Quantitative Ea\sing

Correct Answer: B

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Question 12
A firm's demand for labor is given by the equation Qd = 100L^\( -1/2 \), where Qd is the quantity of labor demanded and L is the wage rate. If the wage rate increases from ₦100 to ₦150, what is the new quantity of labor demanded?
A. 50
B. 75
C. 100
Correct D. 125

Correct Answer: D

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Question 13
The government of Nigeria is considering a policy to increase the price of a commodity from ₦100 to ₦150. If the demand for the commodity is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price, what is the new quantity demanded?
A. 50
Correct B. 75
C. 100
D. 125

Correct Answer: B

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Question 14
A country's balance of payments (BOP) is given by the equation BOP = X - M, where X is the value of exports and M is the value of imports. If the value of exports increases from ₦100 million to ₦150 million and the value of imports remains cons\tant at ₦200 million, what is the new balance of payments?
A. ₦50 million
B. ₦100 million
Correct C. ₦150 million
D. ₦200 million

Correct Answer: C

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Question 15
A firm's production function is given by the equation Q = 100K^\( -1/2 \), where Q is the quantity produced and K is the capital stock. If the capital stock increases from ₦100,000 to ₦150,000, what is the new quantity produced?
A. 50
B. 75
C. 100
Correct D. 125

Correct Answer: D

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Question 16
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will happen to its total revenue?
A. Total revenue will increase
Correct B. Total revenue will decrease
C. Total revenue will remain unchanged
D. Total revenue will increase at first, then decrease

Correct Answer: B

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Question 17
A country's GDP can be calculated u\sing the following formula: \( GDP = C + I + G + \( X - M \ \) ). If the country's consumption is ₦500 billion, investment is ₦200 billion, government sp\ending is ₦300 billion, exports are ₦400 billion, and imports are ₦200 billion, what is the country's GDP?
Correct A. ₦1,300 billion
B. ₦1,500 billion
C. ₦1,700 billion
D. ₦2,000 billion

Correct Answer: A

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Question 18
A firm's \cost function is given by ( C(q) = 10q^2 + 20q + 100 ). If the firm produces 10 units, what is its total \cost?
A. ₦1,300
B. ₦1,500
Correct C. ₦1,700
D. ₦2,000

Correct Answer: C

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Question 19
A central bank uses the following monetary policy tool: \( Delta M = \frac{1}{r} \times Delta i \). If the interest rate is 5% and the reserve requirement is 10%, what is the change in money supply?
A. ₦100 million
Correct B. ₦500 million
C. ₦1 billion
D. ₦5 billion

Correct Answer: B

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Question 20
A firm's revenue function is given by ( R(q) = 20q^2 - 10q + 100 ). If the firm produces 5 units, what is its total revenue?
A. ₦1,500
Correct B. ₦1,700
C. ₦2,000
D. ₦2,500

Correct Answer: B

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Question 21
A country's government imposes a tax on imports to raise revenue. The tax rate is 15% of the import value. If the country imports goods worth ₦1,500,000, what is the amount of tax paid?
A. ₦225,000
Correct B. ₦187,500
C. ₦150,000
D. ₦225,000

Correct Answer: B

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Question 22
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm increases its labor input from 4 units to 9 units and holds capital input cons\tant at 16 units, what is the percentage change in output?
A. 25%
Correct B. 50%
C. 75%
D. 100%

Correct Answer: B

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Question 23
A monopolist faces a demand curve given by P = 100 - 2Q. The firm's marginal \cost is cons\tant at ₦20 per unit. If the firm produces 20 units, what is the profit-maximizing price?
A. ₦80
B. ₦90
Correct C. ₦100
D. ₦110

Correct Answer: C

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Question 24
A country's balance of payments is given by the following equation: BOP = X - M + \( F - I \). If the country's exports (X) are ₦1,200,000, imports (M) are ₦900,000, foreign investment (F) is ₦300,000, and domestic investment (I) is ₦400,000, what is the balance of payments?
Correct A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000

Correct Answer: A

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Question 25
A firm's \cost function is given by C = 2L + 3K. If the firm increases its labor input from 6 units to 9 units and holds capital input cons\tant at 12 units, what is the percentage change in \cost?
A. 25%
Correct B. 50%
C. 75%
D. 100%

Correct Answer: B

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