POST UTME FUTA 2020 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm's \cost function is given by C = 100 + 2Q, where C is the total \cost and Q is the quantity produced. If the firm produces 50 units, what is the total \cost?
Question 2
The production function for a firm is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, how much should the firm sp\end on labor and capital?
Question 3
A firm is facing a downward-sloping demand curve. If the firm increases its production, what will happen to the price and quantity?
Question 4
Consider a firm with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 per unit of labor and r = ₦200 per unit of capital, and the market wage and rental rates are w = ₦120 per unit of labor and r = ₦220 per unit of capital, respectively, what is the optimal input combination for the firm?
Question 5
A firm's \cost function is given by the equation \( C = 100 + 2q + 0.01q^2 \), where ( q ) is the quantity produced. If the firm's revenue function is given by the equation \( R = 200q - 0.5q^2 \), what is the value of the marginal \cost at a quantity of 100 units?
Question 6
A government budget is given by the equation \( B = 1000 + 0.5Y - 0.01Y^2 \), where ( Y ) is the level of economic activity. If the government budget is balanced at a level of economic activity of ₦100 billion, what is the value of the marginal propensity to consume?
Question 7
A firm's total revenue (TR) is given by the equation TR = 100q - 2q^2, where q is the quantity sold. If the firm's marginal revenue (MR) is 80, what is the value of q?
Question 8
A government's budget is given by the equation \( B = 1000 + 0.5Y - 0.01Y^2 \), where ( Y ) is the level of economic activity. If the government's tax revenue is given by the equation \( T = 0.2Y \), what is the value of the marginal tax rate?
Question 9
A government imposes a tax on a firm's profits. The tax rate is 20% of the profit. If the firm's profit is ₦100,000, what is the amount of tax paid?
Question 10
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 -2, what is the percentage change in quantity demanded when the price increases by 10%?
Question 11
A country is experiencing a recession. Which of the following policies would be most effective in stimulating economic growth?
Question 12
A country's GDP is given by the equation GDP = 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 ₦120 billion, and its imports are ₦100 billion, what is the value of the GDP?
Question 13
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 income is ₦100 and the prices of the two goods are ₦20 and ₦30 respectively, what is the consumer's optimal bundle?
Question 14
The following diagram shows the supply and demand curves for a particular good. If the price of the good is currently ₦100, and the quantity demanded is 10 units, what is the opportunity \cost of producing one more unit of the good?
Question 15
In a perfectly competitive market, if the demand for a good increases, what will happen to the equilibrium price and quantity?
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