POST UTME FUTA 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Determine the elasticity of demand for a product whose price elasticity of demand is 0.8 and whose quantity demanded is 100 units when the price is ₦500.
A. 0.2
B. 0.8
C. 1.2
D. 1.5
Question 2
A firm is a monopoly and its demand function is given by Q = 100 - 2P. If the firm's marginal \cost is MC = 10, what is the firm's optimal price?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 3
A firm's \cost function is given by C = 100 + 2L + 3K. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and if the firm's revenue function is given by R = 200L + 300K, find the optimal values of L and K that minimize the firm's \cost.
A. L = 50, K = 100
B. L = 100, K = 50
C. L = 200, K = 100
D. L = 100, K = 200
Question 4
A farmer in Nigeria produces maize and sorghum. The production function for maize is Qm = 100L^0.5K^0.5, where L is labor and K is capital. The production function for sorghum is Qs = 50L^0.2K^0.8. If the farmer has 100 units of labor and 200 units of capital, determine the optimal allocation of labor and capital between maize and sorghum.
A. L = 50, K = 100 for maize; L = 50, K = 150 for sorghum
B. L = 50, K = 100 for maize; L = 50, K = 100 for sorghum
C. L = 50, K = 100 for maize; L = 50, K = 50 for sorghum
D. L = 50, K = 100 for maize; L = 100, K = 50 for sorghum
Question 5
A consumer has a utility function U(x,y) = 2x + 3y. If the consumer's income is ₦1,000 and the prices of x and y are ₦50 and ₦75 respectively, what is the consumer's optimal bundle?
A. (10,5)
B. (15,3)
C. (20,2)
D. (25,1)
Question 6
A firm's marginal revenue (MR) is given by the equation MR = 100 - 4x, where x is the number of units sold. If the firm sells 10 units, what is its marginal revenue?
A. ₦90
B. ₦80
C. ₦70
D. ₦60
Question 7
A firm's demand function is given by Q = 100 - 2P. The firm's marginal revenue (MR) function is given by MR = 50 - 2Q. If the firm's marginal \cost (MC) is MC = 20 + 0.5Q, what is the profit-maximizing price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 8
A firm is operating in a perfectly competitive market. If the market price is $10, and the firm's marginal \cost (MC) is given by MC = 2 + 0.5Q, where Q is the quantity produced, what is the firm's optimal quantity?
A. 20
B. 30
C. 40
D. 50
Question 9
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's income is ₦100 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 0
D. x = 0, y = 15
Question 10
The government of Nigeria has introduced a new policy aimed at increa\sing the production of rice. The policy includes a subsidy of ₦5 per ki\logram of rice produced. If the \cost of production is ₦10 per ki\logram of rice, what is the new \cost of production?
A. ₦5 per ki\logram
B. ₦10 per ki\logram
C. ₦15 per ki\logram
D. ₦20 per ki\logram
Question 11
A country's government is considering a tax on a particular good. If the tax is $5 per unit, and the demand curve for the good is given by Q = 100 - 2P, where P is the price, what is the new equilibrium price?
A. $5
B. $10
C. $15
D. $20
Question 12
A consumer's utility function is given by U = 2x + 3y. If the prices of x and y are ₦5 and ₦10 respectively, and if the consumer's budget constraint is 5x + 10y = ₦50, find the optimal values of x and y that maximize the consumer's utility.
A. x = 5, y = 2
B. x = 2, y = 5
C. x = 10, y = 1
D. x = 1, y = 10
Question 13
A country's economic growth is often measured by its GDP. However, GDP has some limitations. What is one of the main criticisms of GDP as a measure of economic growth?
A. It does not account for income inequality.
B. It does not account for the environmental impact of economic activity.
C. It does not account for the quality of goods and services produced.
D. It does not account for the distribution of income.
Question 14
A country's GDP is ₦10 trillion, its net factor income from abroad is ₦500 billion, and its depreciation is ₦200 billion. What is its GNP?
A. ₦10.5 trillion
B. ₦10.8 trillion
C. ₦11 trillion
D. ₦11.2 trillion
Question 15
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. What is the marginal \cost function?
A. 4q + 10
B. 2q + 5
C. q + 5
D. q + 10

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