POST UTME WELLSPRING UNIVERSITY 2021 Economics | Objective

Are you preparing for POST UTME WELLSPRING UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2021 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
Consider a country with a fixed money supply of ₦10 billion. If the central bank decides to increase the money supply by 20%, what will be the new money supply in billions of naira?
Correct A. ₦12 billion
B. ₦11 billion
C. ₦10.5 billion
D. ₦9.5 billion

Correct Answer: A

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Question 2
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor, and K is capital. If the firm increases labor from 4 units to 6 units, and capital remains cons\tant at 9 units, what is the percentage change in output?
A. 25%
Correct B. 30%
C. 35%
D. 40%

Correct Answer: B

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Question 3
A consumer's budget constraint is given by 2x + 3y = 12, where x is the number of units of good X and y is the number of units of good Y. If the consumer's income increases by 20%, and the price of good X remains cons\tant at ₦2 per unit, what is the new budget constraint equation?
A. 2x + 3y = 14.4
Correct B. 2x + 3y = 15.6
C. 2x + 3y = 16.8
D. 2x + 3y = 18

Correct Answer: B

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Question 4
A firm's \cost function is given by C = 2L + 3K, where C is \cost, L is labor, and K is capital. If the firm increases labor from 4 units to 6 units, and capital remains cons\tant at 9 units, what is the new \cost?
A. ₦42
Correct B. ₦45
C. ₦48
D. ₦51

Correct Answer: B

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Question 5
A country's balance of payments account is given by the following equation: BOP = X - M, where BOP is the balance of payments, X is exports, and M is imports. If the country's exports increase by 10% and imports remain cons\tant at ₦100 billion, what is the new balance of payments?
Correct A. ₦110 billion
B. ₦105 billion
C. ₦100 billion
D. ₦95 billion

Correct Answer: A

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Question 6
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost is MC = 10. What is the profit-maximizing price and quantity?
A. P = 40, Q = 30
Correct B. P = 50, Q = 25
C. P = 60, Q = 20
D. P = 70, Q = 15

Correct Answer: B

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Question 7
A firm is producing a good with a production function given by Q = 2L^\( 1/2 \)K^\( 1/2 \). The firm's \cost function is C = 10L + 20K. What is the firm's profit-maximizing level of labor and capital?
Correct A. L = 4, K = 9
B. L = 9, K = 4
C. L = 16, K = 1
D. L = 1, K = 16

Correct Answer: A

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Question 8
A consumer's demand for a good is given by Q = 100 - 2P. The consumer's income is ₦1000. What is the consumer's budget constraint?
Correct A. P + 0.5Q = 1000
B. P - 0.5Q = 1000
C. P + 0.2Q = 1000
D. P - 0.2Q = 1000

Correct Answer: A

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Question 9
A firm is producing a good with a production function given by Q = 2L^\( 1/2 \)K^\( 1/2 \). The firm's \cost function is C = 10L + 20K. What is the firm's marginal \cost?
Correct A. MC = 5L^\( -1/2 \)K^\( 1/2 \)
B. MC = 10L^\( -1/2 \)K^\( 1/2 \)
C. MC = 15L^\( -1/2 \)K^\( 1/2 \)
D. MC = 20L^\( -1/2 \)K^\( 1/2 \)

Correct Answer: A

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Question 10
A consumer's demand for a good is given by Q = 100 - 2P. The consumer's income is ₦1000. What is the consumer's price elasticity of demand?
Correct A. PED = -0.5
B. PED = -1
C. PED = -1.5
D. PED = -2

Correct Answer: A

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Question 11
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, what is the percentage change in quantity demanded when the price increases by 10%?
Correct A. 5%
B. 10%
C. 15%
D. 20%

Correct Answer: A

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Question 12
A monopolistically competitive firm faces a demand curve given by Qd = 100 - 2P. If the firm's marginal revenue (MR) is 50, what is the price at which the firm will produce 60 units?
A. ₦20
Correct B. ₦30
C. ₦40
D. ₦50

Correct Answer: B

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Question 13
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 is ₦100 billion and the value of imports is ₦80 billion, what is the balance of payments?
Correct A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion

Correct Answer: A

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Question 14
A firm's supply curve is given by the equation Qs = 2P + 10. If the price is ₦20, what is the quantity supplied?
A. 30
B. 40
Correct C. 50
D. 60

Correct Answer: C

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Question 15
A country's inflation rate is given by the equation π = \( P - P_0 \) / P_0, where π is the inflation rate, P is the current price level, and P_0 is the base price level. If the current price level is ₦100 and the base price level is ₦80, what is the inflation rate?
A. 25%
Correct B. 30%
C. 35%
D. 40%

Correct Answer: B

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Question 16
A consumer's indifference curve is given by the equation u(x, y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle?
Correct A. x = 40, y = 20
B. x = 30, y = 30
C. x = 20, y = 40
D. x = 10, y = 50

Correct Answer: A

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Question 17
A firm's \cost function is given by C(x) = 2x^2 + 10x + 5. If the firm produces 20 units of output, what is its total \cost?
A. ₦150
B. ₦200
Correct C. ₦250
D. ₦300

Correct Answer: C

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Question 18
A monopoly firm faces a demand curve given by p = 100 - 2x. If the firm's marginal \cost is MC(x) = 10 + 2x, what is the firm's optimal output?
A. 20
B. 30
Correct C. 40
D. 50

Correct Answer: C

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Question 19
A consumer's budget constraint is given by 2x + 3y = 12. If the consumer's indifference curve is given by u(x, y) = 2x + y, what is the consumer's optimal bundle?
A. x = 2, y = 4
Correct B. x = 3, y = 3
C. x = 4, y = 2
D. x = 5, y = 1

Correct Answer: B

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Question 20
A firm's revenue function is given by R(x) = 100x - 2x^2. If the firm produces 10 units of output, what is its marginal revenue?
A. ₦100
Correct B. ₦120
C. ₦140
D. ₦160

Correct Answer: B

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Question 21
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current inputs are L = 4 and K = 9, calculate the marginal product of labor (MPL) and marginal product of capital (MPK).
A. MPL = 0.5, MPK = 0.5
B. MPL = 1, MPK = 1
C. MPL = 0.25, MPK = 0.25
Correct D. MPL = 0.5, MPK = 0.25

Correct Answer: D

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Question 22
A country's GDP is ₦100 billion. If the country's population is 20 million, calculate the per capita GDP.
Correct A. ₦5,000
B. ₦10,000
C. ₦20,000
D. ₦50,000

Correct Answer: A

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Question 23
A monopolist faces a demand curve given by Q = 100 - 2P. If the firm's marginal \cost is MC = 10, calculate the profit-maximizing price and quantity.
Correct A. P = ₦50, Q = 50
B. P = ₦75, Q = 25
C. P = ₦100, Q = 0
D. P = ₦25, Q = 75

Correct Answer: A

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Question 24
A firm's revenue function is given by R = 100P - 0.1P^2. If the firm's current price is P = ₦50, calculate the marginal revenue (MR) and elasticity of demand.
Correct A. MR = ₦100, elasticity of demand = 0.5
B. MR = ₦50, elasticity of demand = 1
C. MR = ₦25, elasticity of demand = 2
D. MR = ₦0, elasticity of demand = 0

Correct Answer: A

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Question 25
A country's inflation rate is 5% per annum. If the country's current price level is P = ₦100, calculate the expected price level after 1 year.
A. ₦105
Correct B. ₦110
C. ₦115
D. ₦120

Correct Answer: B

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