Exam Body

Year

Subject

Paper Type

POST UTME FUTA 2022 Economics | Objective

Are you preparing for POST UTME FUTA exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2022 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1

A consumer's indifference curve is given by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, find the consumer's optimal bundle.

A. 10 units of x and 5 units of y

Correct B. 15 units of x and 3 units of y

C. 20 units of x and 2 units of y

D. 25 units of x and 1 unit of y

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 2

A firm's production function is given by $ Q = 2L^{0.5}K^{0.5} $. If the firm's output is 100 units and the price of labor is ₦10 per unit, find the firm's optimal level of capital.

A. 100 units of capital

B. 150 units of capital

Correct C. 200 units of capital

D. 250 units of capital

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 3

A government budget is given by the equation $ B = T + G $, where B is the budget, T is the tax revenue, and G is the government exp\enditure. If the government's tax revenue is ₦500 billion and the government exp\enditure is ₦700 billion, find the government's budget.

A. ₦1.2 trillion

B. ₦1.5 trillion

Correct C. ₦1.8 trillion

D. ₦2.0 trillion

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 4

A firm's demand function is given by $ Q = 100 - 2P $. If the price of the good is ₦20, find the firm's revenue.

A. ₦2000

Correct B. ₦3000

C. ₦4000

D. ₦5000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 5

A government's budget is given by the equation $ B = T + G $, where B is the budget, T is the tax revenue, and G is the government exp\enditure. If the government's tax revenue is ₦500 billion and the government exp\enditure is ₦700 billion, find the government's budget.

A. ₦1.2 trillion

B. ₦1.5 trillion

Correct C. ₦1.8 trillion

D. ₦2.0 trillion

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 6

Consider a closed economy with a \single good, labor, and capital as inputs. If the production function is given by Q = 2L^$ 1/2 $K^$ 1/2 $, where Q is output, L is labor, and K is capital, and the price of the good is P = 10, what is the value of the marginal product of labor (MPL) when L = 4 and K = 9?

Correct A. 6

B. 4

C. 8

D. 12

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 7

A firm's \cost function is given by C = 100 + 2Q + 0.01Q^2, where C is the total \cost and Q is the quantity produced. If the firm produces 100 units, what is the total \cost?

Correct A. 1200

B. 1500

C. 1800

D. 2000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 8

A country's balance of payments is given by the following equation: BOP = X - M, where BOP is the balance of payments, X is the value of exports, and M is the value of imports. If the value of exports is 100 and the value of imports is 80, what is the balance of payments?

Correct A. 20

B. 30

C. 40

D. 50

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 9

A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the price is 20, what is the quantity demanded?

Correct A. 60

B. 70

C. 80

D. 90

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 10

A country's inflation rate is given by the following equation: inflation rate = $ CPI_t - CPI_\( t-1 \ $)/CPI_$ t-1 $ * 100, where CPI_t is the current CPI and CPI_$ t-1 $ is the previous CPI. If the current CPI is 120 and the previous CPI is 100, what is the inflation rate?

Correct A. 20

B. 30

C. 40

D. 50

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 11

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%?

Correct A. 20%

B. 10%

C. 5%

D. 15%

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 12

A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production functions are given by Qx = 2L + 3K and Qy = 4L + 2K. If the firm wants to produce 10 units of X and 8 units of Y, and the prices of labor and capital are $5 and $10 respectively, what is the minimum \cost of production?

Correct A. $250

B. $300

C. $350

D. $400

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 13

The supply of a product is given by the equation Qs = 50 + 2P, where Qs is the quantity supplied and P is the price. If the price elasticity of supply is 2, what is the percentage change in quantity supplied when the price increases by 20%?

Correct A. 40%

B. 30%

C. 20%

D. 10%

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 14

A consumer has an indifference curve given by the equation U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is given by the equation 2x + 3y = 12, what is the optimal combination of x and y that maximizes utility?

Correct A. x = 2, y = 4

B. x = 3, y = 3

C. x = 4, y = 2

D. x = 5, y = 1

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 15

The money market equilibrium is given by the equation MS = 100 + 0.5Y, where MS is the money supply and Y is the income. If the income is $1000, what is the money supply?

A. $150

Correct B. $200

C. $250

D. $300

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 16

The government of Nigeria has introduced a new policy to increase agricultural production. The policy involves providing subsidies to farmers who produce crops that are in high demand. However, the policy also involves increa\sing the price of fertilizers and other inputs. If the demand for the crops is elastic and the supply of the crops is inelastic, what will be the effect of the policy on the price of the crops?

A. The price of the crops will increase

Correct B. The price of the crops will decrease

C. The price of the crops will remain the same

D. The effect on the price of the crops is uncertain

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 17

A firm is producing a good with a total revenue of ₦100,000 and a total \cost of ₦80,000. If the firm's marginal revenue is ₦5,000 and its marginal \cost is ₦3,000, what is the firm's profit?

Correct A. ₦10,000

B. ₦15,000

C. ₦20,000

D. ₦25,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 18

A consumer has a budget of ₦10,000 and is faced with the following prices for two goods: Good X \costs ₦5,000 and Good Y \costs ₦3,000. If the consumer's utility function is U = 2x + 3y, where x and y are the quantities of Good X and Good Y respectively, what is the consumer's optimal consumption bundle?

Correct A. x = 2, y = 1

B. x = 1, y = 2

C. x = 3, y = 1

D. x = 1, y = 3

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 19

The government of Nigeria has introduced a new tax on luxury goods. The tax is ₦1,000 per unit of the good. If the demand for the good is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price, what is the effect of the tax on the price of the good?

Correct A. The price of the good will increase

B. The price of the good will decrease

C. The price of the good will remain the same

D. The effect on the price of the good is uncertain

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 20

A firm is producing a good with a total revenue of ₦120,000 and a total \cost of ₦90,000. If the firm's marginal revenue is ₦6,000 and its marginal \cost is ₦4,000, what is the firm's profit?

Correct A. ₦15,000

B. ₦20,000

C. ₦25,000

D. ₦30,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 21

A consumer has a budget of ₦15,000 and is faced with the following prices for two goods: Good X \costs ₦7,000 and Good Y \costs ₦4,000. If the consumer's utility function is U = 3x + 2y, where x and y are the quantities of Good X and Good Y respectively, what is the consumer's optimal consumption bundle?

Correct A. x = 3, y = 1

B. x = 1, y = 3

C. x = 2, y = 2

D. x = 1, y = 1

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 22

The government of Nigeria has introduced a new policy to increase agricultural production. The policy involves providing subsidies to farmers who produce crops that are in high demand. However, the policy also involves increa\sing the price of fertilizers and other inputs. If the demand for the crops is inelastic and the supply of the crops is elastic, what will be the effect of the policy on the price of the crops?

A. The price of the crops will increase

Correct B. The price of the crops will decrease

C. The price of the crops will remain the same

D. The effect on the price of the crops is uncertain

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 23

A firm is producing a good with a total revenue of ₦150,000 and a total \cost of ₦110,000. If the firm's marginal revenue is ₦8,000 and its marginal \cost is ₦5,000, what is the firm's profit?

A. ₦20,000

B. ₦25,000

C. ₦30,000

D. ₦35,000

Correct Answer: VIEW ANSWER

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 24

A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will happen to its total revenue?

A. Total revenue will increase

Correct B. Total revenue will decrease

C. Total revenue will remain the same

D. Total revenue will increase at first, then decrease

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 25

A country's balance of payments is in equilibrium when its current account is equal to its capital account. What is the name of this equilibrium?

A. Current account equilibrium

B. Capital account equilibrium

Correct C. Balance of payments equilibrium

D. Trade balance equilibrium

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows

Help others prepare! Share this practice hub:

Chat with Support