POST UTME WELLSPRING UNIVERSITY 2023 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 2023 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
Consider a firm operating in a perfectly competitive market with a downward-sloping demand curve. If the firm increases its output from 100 units to 120 units, and the price falls from ₦100 to ₦90, what is the price elasticity of demand?
A. 0.5
Correct B. 1.0
C. 1.5
D. 2.0

Correct Answer: B

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Question 2
A monopolist faces a market demand curve given by Q = 100 - 2P. The monopolist's marginal \cost curve is MC = 10 + 2Q. What is the monopolist's optimal price and quantity?
A. P = ₦50, Q = 25
Correct B. P = ₦75, Q = 50
C. P = ₦100, Q = 75
D. P = ₦125, Q = 100

Correct Answer: B

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Question 3
A firm is considering investing in a new project with an initial \cost of ₦100,000 and expected annual profits of ₦20,000 for 5 years. What is the internal rate of return (IRR) of the project?
A. 10%
Correct B. 15%
C. 20%
D. 25%

Correct Answer: B

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Question 4
A government is considering impo\sing a tax on a particular good. The supply curve of the good is given by Q = 100 + 2P, and the demand curve is given by Q = 100 - 2P. What is the deadweight loss of the tax?
A. ₦10,000
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

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Question 5
A firm is producing a good u\sing a production function given by Q = 2L^0.5K^0.5. The firm's \cost function is given by C = 100L + 200K. What is the firm's optimal input mix?
A. L = 100, K = 100
Correct B. L = 200, K = 50
C. L = 50, K = 200
D. L = 100, K = 200

Correct Answer: B

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Question 6
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 price at which the quantity demanded is 50?
A. ₦25
Correct B. ₦50
C. ₦75
D. ₦100

Correct Answer: B

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Question 7
A country's GDP is given by the equation Y = C + I + G, where Y is the GDP, C is the consumption, I is the investment, and G is the government sp\ending. If the consumption is ₦100 billion, the investment is ₦50 billion, and the government sp\ending is ₦20 billion, what is the GDP?
A. ₦170 billion
B. ₦180 billion
C. ₦190 billion
Correct D. ₦200 billion

Correct Answer: D

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Question 8
A firm's supply curve is given by the equation Qs = 2P - 10, where Qs is the quantity supplied and P is the price. If the price elasticity of supply is 0.2, what is the price at which the quantity supplied is 20?
A. ₦10
B. ₦20
Correct C. ₦30
D. ₦40

Correct Answer: C

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Question 9
A country's balance of payments is given by the equation BOP = X - M, where BOP is the balance of payments, X is the exports, and M is the imports. If the exports are ₦100 billion and the imports are ₦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 10
A firm's production function is given by the equation Q = 2L + 3K, where Q is the output, L is the labor, and K is the capital. If the labor is 10 units and the capital is 5 units, what is the output?
A. 20 units
B. 30 units
Correct C. 40 units
D. 50 units

Correct Answer: C

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Question 11
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is given by Qd = 100 - 2P and the supply curve is given by Qs = 2P, find the equilibrium price and quantity.
A. ₦50, 50 units
Correct B. ₦75, 25 units
C. ₦100, 0 units
D. ₦200, 50 units

Correct Answer: B

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Question 12
A firm's \cost function is given by C(q) = 10q^2 + 20q. If the firm produces 10 units, what is the total \cost?
A. ₦1000
Correct B. ₦2000
C. ₦3000
D. ₦4000

Correct Answer: B

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Question 13
A country's balance of payments account is given by the following equation: BOP = X - M - \( F - I \). If the country's exports (X) are ₦100 billion, imports (M) are ₦80 billion, foreign investment (F) is ₦20 billion, and domestic investment (I) is ₦30 billion, what is the balance of payments?
Correct A. ₦10 billion surplus
B. ₦20 billion deficit
C. ₦30 billion surplus
D. ₦40 billion deficit

Correct Answer: A

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Question 14
A firm's revenue function is given by R(q) = 20q^2 - 10q. If the firm produces 5 units, what is the marginal revenue?
A. ₦50
Correct B. ₦75
C. ₦100
D. ₦125

Correct Answer: B

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Question 15
A country's inflation rate is given by the following equation: Inflation = \( P - P0 \) / P0, where P is the current price level and P0 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. 12.5%
B. 25%
Correct C. 37.5%
D. 50%

Correct Answer: C

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Question 16
The government of a country imposes a tax on imports to raise revenue. The tax is levied at a rate of 10% on the value of the imported goods. If the value of the imported goods is ₦100,000, what is the amount of tax paid by the importer?
Correct A. ₦10,000
B. ₦5,000
C. ₦15,000
D. ₦20,000

Correct Answer: A

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Question 17
A monopolist produces a product at a cons\tant marginal \cost of ₦50 per unit. The demand for the product is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. What is the profit-maximizing price and quantity?
Correct A. P = ₦70, Q = 15
B. P = ₦80, Q = 20
C. P = ₦90, Q = 25
D. P = ₦100, Q = 30

Correct Answer: A

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Question 18
A country's balance of payments is given by the following equation: BOP = X - M, where X is the value of exports and M is the value of imports. If the value of exports is ₦100,000 and the value of imports is ₦120,000, what is the balance of payments?
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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Question 19
A central bank uses the money multiplier to determine the money supply in an economy. If the money multiplier is 10 and the reserve requirement is 20%, what is the money supply?
A. ₦100,000
B. ₦200,000
Correct C. ₦300,000
D. ₦400,000

Correct Answer: C

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Question 20
A country's inflation rate is given by the following equation: Inflation Rate = \( P - P0 \) / P0, where P is the current price level and P0 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 21
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the product is given by the equation Qs = 2P - 100, where Qs is the quantity supplied. Find the equilibrium price and quantity.
A. ₦50, 200 units
Correct B. ₦75, 150 units
C. ₦100, 100 units
D. ₦125, 50 units

Correct Answer: B

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Question 22
A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production functions are given by X = 2L + 3K and Y = 3L + 2K. If the firm has 10 units of labor and 8 units of capital, how many units of good X and good Y will it produce?
A. 20 units of X, 15 units of Y
B. 25 units of X, 20 units of Y
Correct C. 30 units of X, 25 units of Y
D. 35 units of X, 30 units of Y

Correct Answer: C

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Question 23
A monopolist faces a demand curve given by P = 100 - 2Q, where P is the price and Q is the quantity. The monopolist's marginal \cost curve is given by MC = 20 + 2Q. Find the monopolist's profit-maximizing quantity and price.
Correct A. 50 units, ₦75
B. 75 units, ₦60
C. 100 units, ₦50
D. 125 units, ₦40

Correct Answer: A

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Question 24
A country's money supply is given by the equation M = 1000 + 2Y, where M is the money supply and Y is the national income. If the national income is ₦10,000, what is the money supply?
A. ₦12,000
Correct B. ₦14,000
C. ₦16,000
D. ₦18,000

Correct Answer: B

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Question 25
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm has 4 units of labor and 9 units of capital, how many units of output will it produce?
A. 12 units
B. 15 units
Correct C. 18 units
D. 20 units

Correct Answer: C

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