POST UTME VERITAS UNIVERSITY 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 4x + 5y = ₦100, and the prices of the two goods are ₦20 and ₦25 respectively, find the consumer's optimal consumption bundle.
A. x = 5, y = 2
B. x = 3, y = 4
C. x = 2, y = 5
D. x = 4, y = 3
Question 2
A country's balance of payments account is given by the following equations: \text{CA} = 100 - 20P, \text{FA} = 50 + 10P, \text{SA} = 20 - 5P. If the country's exchange rate is ₦5 per dollar, find the country's current account balance when the price level is ₦100.
A. ₦500
B. ₦600
C. ₦700
D. ₦800
Question 3
A consumer has a budget of ₦10,000 and faces the following prices: Q1 = ₦2,000, Q2 = ₦3,000, Q3 = ₦4,000. If the consumer chooses to buy 2 units of Q1, 3 units of Q2, and 1 unit of Q3, what is the opportunity \cost of the last unit of Q3?
A. ₦2,000
B. ₦3,000
C. ₦4,000
D. ₦5,000
Question 4
A firm's production function is given by \( Q = 2L^2 + 3K^2 \). If the firm's output is 100 units and the wage rate is ₦10 per unit of labor, find the optimal level of capital.
A. K = 5 units
B. K = 10 units
C. K = 15 units
D. K = 20 units
Question 5
A consumer has a utility function U = 2X + 3Y. If the price of good X increases by 10% and the price of good Y increases by 15%, what is the new budget constraint?
A. 10X + 15Y = 100
B. 10X + 15Y = 120
C. 10X + 15Y = 150
D. 10X + 15Y = 180
Question 6
A consumer's utility function is given by U = 2x + 3y, where U is the utility and x and y are the quantities of two goods. If the prices of the two goods are 5 and 10 respectively, and the consumer's income is 100, what is the optimal combination of the two goods?
A. x = 10, y = 20
B. x = 15, y = 30
C. x = 20, y = 40
D. x = 25, y = 50
Question 7
A firm is producing a good with a production function Q = 2L^0.5K^0.5. If the price of labor increases by 20% and the price of capital increases by 15%, what is the new production level?
A. 10
B. 12
C. 15
D. 18
Question 8
A consumer has a utility function U = 2X + 3Y. If the price of good X increases by 10% and the price of good Y increases by 15%, what is the new budget constraint?
A. 10X + 15Y = 100
B. 10X + 15Y = 120
C. 10X + 15Y = 150
D. 10X + 15Y = 180
Question 9
The government of a country imposes a tax on a firm's output. The firm's supply curve is given by Q = 2P - 10. If the tax rate is ₦5 per unit of output, find the firm's new supply curve.
A. Q = 2P - 15
B. Q = 2P - 20
C. Q = 2P - 25
D. Q = 2P - 30
Question 10
A firm's production function is given by Q = 3L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦50, and it currently uses 10 units of labor and 5 units of capital, find the firm's current total \cost.
A. ₦2500
B. ₦3000
C. ₦3500
D. ₦4000
Question 11
A consumer's indifference curve is typically downward-sloping. What is the main reason for this?
A. The consumer is willing to give up more of one good to get more of another good.
B. The consumer is willing to give up less of one good to get more of another good.
C. The consumer is indifferent to the trade-off between the two goods.
D. The consumer is willing to give up the same amount of one good to get more of another good.
Question 12
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing price and quantity.
A. P = ₦20, Q = 40
B. P = ₦30, Q = 60
C. P = ₦40, Q = 80
D. P = ₦50, Q = 100
Question 13
The elasticity of demand for a product is 0.5. If the price of the product increases by 10%, what is the percentage change in the quantity demanded?
A. 5%
B. 10%
C. 15%
D. 20%
Question 14
The demand for a product is given by the equation \( Q_d = 100 - 2P \) and the supply is given by \( Q_s = 2P - 10 \). Find the equilibrium price and quantity.
A. P = ₦20, Q = 30
B. P = ₦30, Q = 20
C. P = ₦40, Q = 10
D. P = ₦50, Q = 0
Question 15
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^\( 1/2 \)H^\( 1/2 \). If the firm's current input prices are w_L = 10 and w_H = 20, and the current output price is p = 30, calculate the firm's optimal input bundle (L, H) u\sing the Lagrange method. What is the value of the Lagrange multiplier?
A. \( lambda = 0.5, L = 4, H = 4 \)
B. \( lambda = 1, L = 2, H = 2 \)
C. \( lambda = 0.25, L = 16, H = 16 \)
D. \( lambda = 0.75, L = 8, H = 8 \)

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