POST UTME FUTA 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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%?
A. 20%
B. 30%
C. 40%
D. 50%
Question 2
A consumer's budget constraint is given by 2x + 3y = 100, where x and y are the quantities of two goods. If the consumer's utility function is given by U = 2x + 3y, how much of good x should the consumer buy?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 3
A firm's \cost function is given by ( C(x) = 2x^2 + 10x + 5 ). If the firm produces 20 units of output, find the total \cost and the marginal \cost.
A. Total \cost = ₦150, Marginal \cost = ₦15
B. Total \cost = ₦200, Marginal \cost = ₦20
C. Total \cost = ₦250, Marginal \cost = ₦25
D. Total \cost = ₦300, Marginal \cost = ₦30
Question 4
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor and K is the capital. If the firm wants to increase its output by 20% and the labor increases by 10%, what is the percentage change in capital required?
A. 15%
B. 20%
C. 25%
D. 30%
Question 5
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 optimal bundle of x and y.
A. x = 40, y = 20
B. x = 30, y = 30
C. x = 20, y = 40
D. x = 50, y = 10
Question 6
A country's GDP is 100 billion naira, and its GNP is 120 billion naira. What is the value of net factor income from abroad?
A. 20 billion naira
B. 30 billion naira
C. 40 billion naira
D. 50 billion naira
Question 7
A firm's revenue function is given by R = 2x^2 + 3x. If the firm's marginal revenue is ₦100, what is the firm's optimal output?
A. 5
B. 10
C. 15
D. 20
Question 8
A government's budget constraint is given by 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 and the government exp\enditure is ₦750, what is the government's budget?
A. ₦1250
B. ₦1250
C. ₦1250
D. ₦1250
Question 9
A firm's revenue function is given by R(Q) = 100Q - 2Q^2. The firm's \cost function is given by C(Q) = 20Q + 10. What is the firm's profit function?
A. 80Q - 2Q^2
B. 100Q - 2Q^2
C. 20Q + 10
D. 80Q + 10
Question 10
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm's current labor and capital inputs are 4 and 9 units respectively, what is the marginal product of capital (MPK) when L = 4?
A. 1/4
B. 1/2
C. 1
D. 2
Question 11
A government imposes a tax on imports to reduce the trade deficit. What is the likely effect of this tax on the trade deficit?
A. The trade deficit will increase.
B. The trade deficit will decrease.
C. The trade deficit will remain the same.
D. The trade deficit will become negative.
Question 12
A monopolist faces a demand curve given by P = 100 - 2Q. The firm's marginal \cost is MC = 10 + 2Q. What is the monopolist's profit-maximizing quantity?
A. 20
B. 30
C. 40
D. 50
Question 13
An agricultural firm in Nigeria produces two crops: maize and soybeans. The firm's production function for maize is Qm = 1000L^0.4K^0.3, where Qm is the quantity of maize produced and L and K are labor and capital, respectively. The production function for soybeans is Qs = 800L^0.2K^0.5. If the firm has 100 units of labor and 50 units of capital, what is the total quantity of both crops produced?
A. 3000
B. 4000
C. 5000
D. 6000
Question 14
A firm's \cost function is given by the equation C = 3x^2 + 2x + 1, where x is the number of units produced. If the firm produces 5 units, what is its \cost?
A. 41
B. 43
C. 45
D. 47
Question 15
A government's budget is given by the following table:\n| Category | Revenue | Exp\enditure |\n| --- | --- | --- |\n| Tax | ₦1000 | ₦800 |\n| Non-tax | ₦500 | ₦600 |\n| Total | ₦1500 | ₦1400 |\nIf the government's exchange rate is ₦5 per dollar, find the budget balance.
A. ₦100 surplus
B. ₦100 deficit
C. ₦50 surplus
D. ₦50 deficit

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