POST UTME FUTA 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's indifference curve is downward sloping and convex to the origin. What is the implication of this shape for the consumer's marginal rate of substitution (MRS)?
A. The MRS is cons\tant
B. The MRS is increa\sing
C. The MRS is decrea\sing
D. The MRS is zero
Question 2
Consider a country with a GDP of ₦10 trillion and a population of 200 million. If the average annual income is ₦50,000, what is the country's GDP per capita?
A. ₦25,000
B. ₦50,000
C. ₦75,000
D. ₦100,000
Question 3
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 country's consumption is ₦100 billion, its investment is ₦50 billion, and its government sp\ending is ₦75 billion, find the country's GDP.
A. ₦225 billion
B. ₦250 billion
C. ₦275 billion
D. ₦300 billion
Question 4
A country's balance of payments (BOP) is a statistical statement that summarizes all economic transactions between residents and non-residents over a specific period. Which of the following is NOT a component of the BOP?
A. Current Account
B. Capital Account
C. Financial Account
D. Goods and Services Account
Question 5
A monopolist faces a demand curve given by Q = 100 - 2P. The firm's marginal \cost is $10. What is the monopolist's optimal price?
A. $40
B. $50
C. $60
D. $70
Question 6
A bank's money supply is given by M = 1000 + 2Y, where Y is the country's GDP. If the country's GDP is 5000, find the bank's money supply.
A. ₦6000
B. ₦7000
C. ₦8000
D. ₦9000
Question 7
A country's national income is given by the following equation: NI = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's consumption is ₦500 billion, its investment is ₦200 billion, its government sp\ending is ₦300 billion, its exports are ₦500 billion, and its imports are ₦600 billion, what is its national income?
A. ₦1.5 trillion
B. ₦1.6 trillion
C. ₦1.7 trillion
D. ₦1.8 trillion
Question 8
A firm's production function is given by Q = 2L^0.5 K^0.5. If the firm's current input levels are L = 4 and K = 9, and the price of good L is 3 units of good K, find the firm's optimal input levels.
A. (6, 6)
B. (8, 4)
C. (10, 2)
D. (12, 0)
Question 9
A country's demand for a good is given by Qd = 100 - 2P, where P is the price of the good. If the country's supply of the good is given by Qs = 2P - 50, find the equilibrium price and quantity of the good.
A. P = 25, Q = 50
B. P = 30, Q = 40
C. P = 35, Q = 30
D. P = 40, Q = 20
Question 10
The following table shows the price elasticity of demand for a particular good.
A. The good is elastic.
B. The good is inelastic.
C. The good is unit elastic.
D. The good is perfectly elastic.
Question 11
A firm's total revenue (TR) is given by the equation TR = 100q - 2q^2. What is the firm's marginal revenue (MR) at a quantity of q = 5?
A. 200
B. 250
C. 300
D. 350
Question 12
A country's balance of payments is given by BOP = X - M, where X is the country's exports and M is its imports. If the country's exports are 1000 and its imports are 800, find the country's balance of payments.
A. ₦200
B. ₦300
C. ₦400
D. ₦500
Question 13
A firm's demand curve is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's revenue function is R(P) = P\( 100 - 2P \), find the price at which the firm's revenue is maximized.
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 14
A firm's \cost function is given by C = 2Q + 3Q^2, where Q is the quantity produced. If the firm produces 10 units, what is its total \cost?
A. ₦130
B. ₦230
C. ₦330
D. ₦430
Question 15
A consumer's budget constraint is given by the equation 2x + 3y = 12. What is the consumer's opportunity \cost of choo\sing x = 3?
A. 2
B. 3
C. 4
D. 5

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