POST UTME FUTA 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's indifference curve is flatter than their budget constraint. What is the effect on their optimal consumption bundle?
A. The consumer consumes more of good X and less of good Y
B. The consumer consumes more of good Y and less of good X
C. The consumer consumes the same amount of both goods
D. The consumer consumes less of both goods
Question 2
The government of Nigeria has introduced a new policy aimed at increa\sing the production of agricultural goods. The policy includes the following measures: (i) providing subsidies to farmers, (ii) investing in irrigation systems, and (iii) increa\sing the availability of credit to farmers. Which of the following is a potential consequence of the policy?
A. Increased agricultural production
B. Reduced poverty and inequality
C. Increased unemployment
D. Increased inflation
Question 3
A firm is considering two production methods to produce a product. Method A requires an initial investment of ₦100,000 and produces 100 units of the product per year. Method B requires an initial investment of ₦150,000 and produces 120 units of the product per year. Which method should the firm choose?
A. Method A
B. Method B
C. Both methods
D. Neither method
Question 4
A central bank increases the money supply in an economy. What happens to the price level in the short run?
A. Increases
B. Decreases
C. Remains cons\tant
D. No effect
Question 5
A firm is considering two investment projects. Project A has a net present value (NPV) of ₦100,000 and a probability of success of 0.8. Project B has a NPV of ₦150,000 and a probability of success of 0.6. Which project should the firm choose?
A. Project A
B. Project B
C. Both projects
D. Neither project
Question 6
The government of Nigeria has introduced a new tax policy aimed at increa\sing revenue from the agricultural sector. The policy requires farmers to pay a 10% tax on their annual income. If a farmer's annual income is ₦120,000, what is the amount of tax the farmer must pay?
A. ₦12,000
B. ₦10,000
C. ₦8,000
D. ₦6,000
Question 7
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 and P is the price. If the market is in equilibrium, what is the price of the product?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 8
Consider a firm operating in a perfectly competitive market with cons\tant returns to scale. If the firm's average \cost curve intersects its marginal \cost curve at point E, where the price is P = 10 and the quantity supplied is Q = 20, what is the firm's economic profit?
A. ₦200
B. ₦0
C. ₦100
D. ₦500
Question 9
A firm's supply curve is given by Q = 2P + 10, where Q is the quantity supplied and P is the price. If the firm's marginal \cost (MC) is given by MC = 2P + 5, find the price at which the firm's supply curve intersects the MC curve.
A. ₦5
B. ₦10
C. ₦15
D. ₦20
Question 10
The following table shows the production function for a firm:
A. Q = 2L
B. Q = 3L
C. Q = 4L
D. Q = 5L
Question 11
The following diagram shows the supply and demand curves for a firm:
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 12
A monopolistically competitive firm faces a demand curve with an elasticity of -1. If the firm increases its price by 12%, what is the percentage change in quantity demanded?
A. -12%
B. -10%
C. -8%
D. -6%
Question 13
A country's GDP is ₦1,000,000,000. If the country's imports are ₦200,000,000 and its exports are ₦300,000,000, what is the country's balance of trade?
A. ₦100,000,000
B. ₦200,000,000
C. ₦300,000,000
D. ₦400,000,000
Question 14
A firm's demand curve for a product is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's total revenue (TR) is given by TR = P * Q, find the price at which the firm's marginal revenue (MR) is equal to the price elasticity of demand (PED).
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 15
A government imposes a tax on a firm's profits. The firm's supply curve shifts to the left, and the government collects more revenue. What is the effect on the firm's profit-maximizing output?
A. The firm's profit-maximizing output increases
B. The firm's profit-maximizing output decreases
C. The firm's profit-maximizing output remains unchanged
D. The firm's profit-maximizing output increases, but at a lower price

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