POST UTME FUTA 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolist has a demand curve given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the monopolist's marginal \cost is 10, what is the optimal price and quantity?
A. P = 20, Q = 40
B. P = 25, Q = 50
C. P = 30, Q = 60
D. P = 35, Q = 70
Question 2
A country's inflation rate is given by the equation \pi = \frac{M}{V}, where \pi is the inflation rate, M is the money supply and V is the velocity of money. If the country's inflation rate is 10%, money supply is 100 and velocity of money is 10, what is the value of the money supply?
A. 100
B. 200
C. 300
D. 400
Question 3
A consumer's indifference curve is downward sloping. Which of the following is a consequence of this?
A. The consumer is willing to give up more of one good to get more of another.
B. The consumer is willing to give up less of one good to get more of another.
C. The consumer is indifferent between two bundles of goods.
D. The consumer is willing to give up the same amount of one good to get more of another.
Question 4
A firm's production function is given by the equation Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm wants to produce 100 units of output, find the required labor and capital.
A. L = 25, K = 25
B. L = 50, K = 50
C. L = 100, K = 100
D. L = 200, K = 200
Question 5
A country's GDP is given by the equation Y = C + I + G + \( X - M \), where Y is the GDP, C is the consumption, I is the investment, G is the government sp\ending, X is the exports and M is the imports. If the country's GDP is 100, consumption is 30, investment is 20, government sp\ending is 15, exports are 25 and imports are 10, what is the value of the marginal propensity to consume?
A. 0.3
B. 0.4
C. 0.5
D. 0.6
Question 6
A firm is producing at a level of output where its marginal \cost is equal to its marginal revenue. Which of the following is a consequence of this?
A. The firm's total revenue is maximized.
B. The firm's total \cost is minimized.
C. The firm's profit is maximized.
D. The firm's average \cost is equal to its average revenue.
Question 7
A country's inflation rate is given by the equation π = \( P - P^* \) / P^*, where π is the inflation rate, P is the current price level, and P^* is the base price level. If the current price level is ₦100 and the base price level is ₦80, find the inflation rate.
A. 12.5%
B. 15%
C. 20%
D. 25%
Question 8
A firm has a production function given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor and K is the capital. If the firm is currently u\sing 4 units of labor and 9 units of capital, what is the marginal product of labor?
A. 0.5
B. 1
C. 1.5
D. 2
Question 9
A firm is producing at its optimal level of output. Which of the following is a consequence of this?
A. The firm's marginal \cost is equal to its marginal revenue.
B. The firm's average \cost is equal to its average revenue.
C. The firm's total revenue is maximized.
D. The firm's profit is maximized.
Question 10
A country's balance of payments is in equilibrium. Which of the following is a consequence of this?
A. The country's exchange rate is overvalued.
B. The country's exchange rate is undervalued.
C. The country's exchange rate is at its equilibrium value.
D. The country's exchange rate is floating.
Question 11
A firm's \cost function is given by C(x) = 2x^2 + 10x + 5. If the firm's revenue function is R(x) = 20x - 2x^2, find the profit-maximizing level of output.
A. 5 units
B. 10 units
C. 15 units
D. 20 units
Question 12
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 function is C = 100 + 0.8Y, the investment function is I = 50 + 0.2Y, and the government sp\ending is G = 200, find the GDP.
A. ₦1000
B. ₦1200
C. ₦1500
D. ₦1800
Question 13
A monopolist has a demand curve given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the monopolist's marginal \cost is 10, what is the optimal price and quantity?
A. P = 20, Q = 40
B. P = 25, Q = 50
C. P = 30, Q = 60
D. P = 35, Q = 70
Question 14
A consumer's budget constraint is given by the equation 2x + 3y = 12. Which of the following is a consequence of this?
A. The consumer can afford to buy 6 units of x and 4 units of y.
B. The consumer can afford to buy 4 units of x and 6 units of y.
C. The consumer can afford to buy 8 units of x and 2 units of y.
D. The consumer can afford to buy 12 units of x and 0 units of y.
Question 15
A country's GDP is given by the equation Y = C + I + G + \( X - M \), where Y is the GDP, C is the consumption, I is the investment, G is the government sp\ending, X is the exports and M is the imports. If the country's GDP is 100, consumption is 30, investment is 20, government sp\ending is 15, exports are 25 and imports are 10, what is the value of the marginal propensity to save?
A. 0.3
B. 0.4
C. 0.5
D. 0.6

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