POST UTME FUTA 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is producing a good u\sing two inputs, labor (L) and capital (K). The production function is given by Q = 2L^0.5K^0.5. If the prices of labor and capital are ₦10 and ₦20 respectively, and the firm's output is 100 units, what is the optimal combination of labor and capital?
A. (10,5)
B. (15,3)
C. (20,2)
D. (25,1)
Question 2
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 - 50, where Qs is the quantity supplied. Find the equilibrium price and quantity.
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 3
A firm's production function is given by Q = 3L^0.5K^0.5. If the price of the good is $15 and the wage rate is $6 per unit of labor, calculate the optimal level of capital employment u\sing the first-order condition for profit maximization.
A. 4
B. 6
C. 8
D. 10
Question 4
A firm in Nigeria produces a product u\sing two inputs, labor and capital. The production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the amount of labor used, and K is the amount of capital used. If the firm uses 10 units of labor and 20 units of capital, find the quantity produced.
A. Q = 100
B. Q = 120
C. Q = 140
D. Q = 160
Question 5
A country's GDP is $150 billion, and its GNP is $180 billion. What is the value of net factor income from abroad?
A. $15 billion
B. $30 billion
C. $45 billion
D. $60 billion
Question 6
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm produces 20 units of output, what is the total \cost of production?
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 7
The government of Nigeria imposes a tax on the income of its citizens. The tax function is given by T = 0.2Y, where T is the tax paid and Y is the income. If a citizen has an income of ₦100,000, find the tax paid.
A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000
Question 8
A country's GDP is $100 billion, and its GNP is $120 billion. What is the value of net factor income from abroad?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion
Question 9
A firm is producing a good with a production function Q = 2L^0.5K^0.5, where L is labor and K is capital. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, find the optimal level of labor and capital that maximizes profit.
A. ₦1000, ₦500
B. ₦500, ₦1000
C. ₦2000, ₦1000
D. ₦1000, ₦2000
Question 10
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and if the firm's budget constraint is given by 100L + 200K = ₦10000, what is the optimal level of labor (L) that the firm should employ?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 11
A firm is producing two goods, A and B. The production function for good A is given by Q_A = 2L + 3K, where L is labor and K is capital. The production function for good B is given by Q_B = 4L + 2K. If the firm has 10 units of labor and 5 units of capital, how many units of good A and good B should it produce to maximize its total output?
A. Q_A = 15, Q_B = 10
B. Q_A = 20, Q_B = 5
C. Q_A = 10, Q_B = 15
D. Q_A = 5, Q_B = 20
Question 12
A farmer in Nigeria produces two crops, maize and yam. The production functions for the two crops are given by Qm = 100 + 2L + 3K and Qy = 150 + 4L + 2K, where Qm is the quantity of maize produced, Qy is the quantity of yam produced, L is the amount of labor used, and K is the amount of capital used. If the farmer uses 20 units of labor and 15 units of capital, find the quantities of maize and yam produced.
A. Qm = 120, Qy = 180
B. Qm = 140, Qy = 200
C. Qm = 160, Qy = 220
D. Qm = 180, Qy = 240
Question 13
A farmer in Nigeria produces two crops, maize and yam. The production functions for the two crops are given by Qm = 100 + 2L + 3K and Qy = 150 + 4L + 2K, where Qm is the quantity of maize produced, Qy is the quantity of yam produced, L is the amount of labor used, and K is the amount of capital used. If the farmer uses 20 units of labor and 15 units of capital, find the quantities of maize and yam produced.
A. Qm = 120, Qy = 180
B. Qm = 140, Qy = 200
C. Qm = 160, Qy = 220
D. Qm = 180, Qy = 240
Question 14
A firm's revenue function is given by R(q) = 20q^2 - 10q + 5. If the firm produces 15 units of output, what is the total revenue?
A. ₦275
B. ₦300
C. ₦325
D. ₦350
Question 15
A consumer has the following utility function: U = 2x + 3y, where x and y are the quantities of two goods. If the prices of the two goods are ₦50 and ₦75 respectively, find the optimal quantities of the two goods that maximize utility.
A. 10, 5
B. 5, 10
C. 15, 5
D. 5, 15

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