POST UTME FUTA 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's budget constraint is given by 2X + 3Y = 60. If the price of good X increases by 20% and the price of good Y remains cons\tant, what is the new budget constraint?
A. 2X + 3Y = 72
B. 2X + 3Y = 80
C. 2X + 3Y = 90
D. 2X + 3Y = 100
Question 2
A monopolist faces a demand curve with a price elasticity of -2. If the monopolist increases the price by 10%, what is the percentage change in quantity demanded?
A. -20%
B. -15%
C. -10%
D. -5%
Question 3
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?
A. 20
B. 30
C. 40
D. 50
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
B. ₦3000
C. ₦4000
D. ₦5000
Question 5
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?
A. x = 2, y = 1
B. x = 1, y = 2
C. x = 3, y = 1
D. x = 1, y = 3
Question 6
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?
A. 1200
B. 1500
C. 1800
D. 2000
Question 7
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?
A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000
Question 8
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
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
Question 9
The money supply is the total amount of money available in an economy. Explain this u\sing a diagram.
A. The money supply is the total amount of money available in an economy.
B. The money supply is the total amount of money available in a country.
C. The money supply is the total amount of money available in a region.
D. The money supply is the total amount of money available in a city.
Question 10
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
B. $200
C. $250
D. $300
Question 11
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
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
Question 12
The national income is the total value of all final goods and services produced within a country. Explain this u\sing a diagram.
A. The national income is the total value of all intermediate goods and services produced within a country.
B. The national income is the total value of all final goods and services produced within a country.
C. The national income is the total value of all goods and services produced within a country.
D. The national income is the total value of all services produced within a country.
Question 13
A government is considering a policy to reduce inflation. The policy involves reducing the money supply by 10%. If the current money supply is ₦5,000,000,000, what is the new money supply?
A. ₦4,500,000,000
B. ₦4,750,000,000
C. ₦5,000,000,000
D. ₦5,250,000,000
Question 14
A government is considering a policy to increase economic growth. The policy involves increa\sing government sp\ending by 15%. If the current government sp\ending is ₦3,000,000,000, what is the new government sp\ending?
A. ₦3,450,000,000
B. ₦3,500,000,000
C. ₦3,600,000,000
D. ₦3,750,000,000
Question 15
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
C. ₦1.8 trillion
D. ₦2.0 trillion

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