POST UTME FUTA 2024 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 2024 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 optimal bundle of x and y.
Correct A. x = 40, y = 20
B. x = 30, y = 30
C. x = 20, y = 40
D. x = 50, y = 10

Correct Answer: A

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Question 2
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.
Correct 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

Correct Answer: A

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Question 3
A country's balance of payments is given by the following table:\n| Category | Exports | Imports |\n| --- | --- | --- |\n| Goods | ₦1000 | ₦800 |\n| Services | ₦500 | ₦600 |\n| Transfer | ₦200 | ₦100 |\n| Total | ₦1700 | ₦1500 |\nIf the country's exchange rate is ₦5 per dollar, find the balance of payments.
Correct A. ₦200 surplus
B. ₦100 deficit
C. ₦50 surplus
D. ₦50 deficit

Correct Answer: A

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Question 4
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.
Correct A. ₦100 surplus
B. ₦100 deficit
C. ₦50 surplus
D. ₦50 deficit

Correct Answer: A

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Question 5
A firm's revenue function is given by ( R(x) = 2x^2 + 10x + 5 ). If the firm produces 20 units of output, find the total revenue and the marginal revenue.
Correct A. Total revenue = ₦150, Marginal revenue = ₦15
B. Total revenue = ₦200, Marginal revenue = ₦20
C. Total revenue = ₦250, Marginal revenue = ₦25
D. Total revenue = ₦300, Marginal revenue = ₦30

Correct Answer: A

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Question 6
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 wants to increase output by 20% while holding labor cons\tant at 16 units, how much capital must it increase?
A. 10 units
Correct B. 20 units
C. 30 units
D. 40 units

Correct Answer: B

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Question 7
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, how much of good x should the consumer buy?
A. 100 units
Correct B. 200 units
C. 300 units
D. 400 units

Correct Answer: B

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Question 8
A firm's \cost function is given by C = 2L + 3H, where C is \cost, L is labor, and H is capital. If the firm wants to minimize \cost while producing 100 units of output, how much labor should it hire?
A. 20 units
Correct B. 30 units
C. 40 units
D. 50 units

Correct Answer: B

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Question 9
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
Correct B. 30 units
C. 40 units
D. 50 units

Correct Answer: B

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Question 10
A firm's revenue function is given by R = 2x - 3x^2, where R is revenue and x is the quantity sold. If the firm wants to maximize revenue, how much should it produce?
A. 10 units
Correct B. 20 units
C. 30 units
D. 40 units

Correct Answer: B

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Question 11
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital are fixed at 100 units each, what is the marginal product of labor?
Correct A. 50
B. 100
C. 200
D. 500

Correct Answer: A

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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
Correct C. 40
D. 50

Correct Answer: C

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Question 13
A consumer's budget constraint is given by 2X + 3Y = 60. The consumer's indifference curve is given by U = 2X + 3Y. What is the consumer's optimal bundle?
A. X = 10, Y = 10
Correct B. X = 15, Y = 5
C. X = 20, Y = 0
D. X = 0, Y = 20

Correct Answer: B

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Question 14
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?
Correct A. 80Q - 2Q^2
B. 100Q - 2Q^2
C. 20Q + 10
D. 80Q + 10

Correct Answer: A

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Question 15
A firm's demand curve is given by P = 100 - 2Q. The firm's marginal \cost is MC = 10 + 2Q. What is the firm's profit-maximizing price?
A. 80
B. 90
Correct C. 100
D. 110

Correct Answer: C

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Question 16
A government imposes a tax on a commodity to reduce its consumption. However, the tax revenue is used to fund a program that increases the production of the same commodity. What is the opportunity \cost of this policy?
A. The reduction in consumption of the commodity
B. The increase in production of the commodity
Correct C. The opportunity \cost is zero because the tax revenue is used to fund a program that increases the production of the commodity
D. The opportunity \cost is the difference between the tax revenue and the \cost of producing the commodity

Correct Answer: C

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Question 17
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 100 units and the wage rate is ₦100 per hour, what is the minimum number of units of capital required?
A. 10
Correct B. 20
C. 30
D. 40

Correct Answer: B

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Question 18
A consumer's utility function is given by U = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦50 and ₦75 respectively, what is the consumer's optimal bundle?
A. x = 10, y = 5
Correct B. x = 15, y = 10
C. x = 20, y = 15
D. x = 25, y = 20

Correct Answer: B

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Question 19
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
Correct B. 10
C. 15
D. 20

Correct Answer: B

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Question 20
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?
Correct A. ₦1250
B. ₦1250
C. ₦1250
D. ₦1250

Correct Answer: A

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Question 21
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. 30%
C. 40%
D. 50%

Correct Answer: A

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Question 22
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%
Correct B. 20%
C. 25%
D. 30%

Correct Answer: B

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Question 23
The government of a country wants to reduce its budget deficit by 10% in the next fiscal year. If the current budget deficit is ₦100 billion, what is the new budget deficit?
Correct A. ₦90 billion
B. ₦95 billion
C. ₦100 billion
D. ₦105 billion

Correct Answer: A

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Question 24
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is the consumption, I is the investment, G is the government sp\ending, X is the exports and M is the imports. If the country's GDP is $100 billion, consumption is $50 billion, investment is $20 billion, government sp\ending is $15 billion, exports are $30 billion and imports are $25 billion, what is the value of X?
A. $35 billion
B. $40 billion
C. $45 billion
Correct D. $50 billion

Correct Answer: D

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Question 25
A firm's demand function 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. 30%
C. 40%
D. 50%

Correct Answer: A

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