POST UTME FUTA 2025 Economics | Objective

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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
Correct B. 0.8
C. 1.2
D. 1.5

Correct Answer: B

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Question 2
A firm's total revenue (TR) is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm sells 20 units, what is its total revenue?
A. ₦1,400
Correct B. ₦1,600
C. ₦1,800
D. ₦2,000

Correct Answer: B

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Question 3
A country's GDP is ₦1,500 billion and its GNP is ₦1,600 billion. What is the net factor income from abroad?
Correct A. ₦100 billion
B. ₦50 billion
C. ₦0 billion
D. ₦-50 billion

Correct Answer: A

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Question 4
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?
Correct A. ₦90
B. ₦80
C. ₦70
D. ₦60

Correct Answer: A

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Question 5
A country's GDP at factor \cost is ₦1,000 billion and its net indirect tax is ₦50 billion. What is its GDP at market price?
Correct A. ₦1,050 billion
B. ₦1,000 billion
C. ₦950 billion
D. ₦900 billion

Correct Answer: A

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Question 6
Determine the price elasticity of demand for a product whose price elasticity of supply is 0.5 and whose cross-price elasticity of demand with respect to a complementary good is -2. Assuming the product is a normal good.
A. 0.25
Correct B. 0.5
C. 1
D. 2

Correct Answer: B

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Question 7
A consumer has a utility function U(x,y) = 2x + 3y. If the prices of x and y are $2 and $3 respectively, and the consumer has an income of $15, determine the optimal quantities of x and y that the consumer will purchase.
Correct A. x = 2, y = 3
B. x = 3, y = 2
C. x = 4, y = 1
D. x = 1, y = 4

Correct Answer: A

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Question 8
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.
Correct 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

Correct Answer: A

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Question 9
A monopolist produces a product with a demand function P = 100 - 2Q and a \cost function C = 20 + 10Q. Determine the profit-maximizing quantity and price of the product.
Correct A. Q = 20, P = 80
B. Q = 30, P = 70
C. Q = 40, P = 60
D. Q = 50, P = 50

Correct Answer: A

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Question 10
A country's GDP is $100 billion, its imports are $20 billion, and its exports are $30 billion. Determine the country's GNP.
A. $120 billion
Correct B. $130 billion
C. $140 billion
D. $150 billion

Correct Answer: B

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Question 11
Consider a firm operating in a perfectly competitive market with a given production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦200, and the current output price is p = ₦500, what is the firm's optimal input combination (L, K) that maximizes its profit?
A. L = 100, K = 100
Correct B. L = 200, K = 50
C. L = 50, K = 200
D. L = 100, K = 200

Correct Answer: B

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Question 12
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
Correct C. ₦11 trillion
D. ₦11.2 trillion

Correct Answer: C

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Question 13
A firm's total revenue is given by the equation TR = 100Q - 2Q^2, where Q is the quantity sold. If the firm sells 50 units, what is its total revenue?
A. ₦2,000
Correct B. ₦3,000
C. ₦4,000
D. ₦5,000

Correct Answer: B

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Question 14
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦200, and the current output price is p = ₦500, what is the firm's optimal input combination (L, K) that maximizes its profit?
A. L = 100, K = 100
Correct B. L = 200, K = 50
C. L = 50, K = 200
D. L = 100, K = 200

Correct Answer: B

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Question 15
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
Correct C. ₦11 trillion
D. ₦11.2 trillion

Correct Answer: C

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Question 16
A monopolistically competitive firm faces a demand curve with a cons\tant elasticity of -2. If the firm's marginal revenue (MR) is given by MR = 100 - 2Q, where Q is the quantity sold, what is the firm's optimal quantity?
A. 50
Correct B. 75
C. 100
D. 125

Correct Answer: B

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Question 17
A country's GDP is $100 billion, and its GNP is $120 billion. What is the country's net factor income from abroad?
A. $10 billion
Correct B. $20 billion
C. $30 billion
D. $40 billion

Correct Answer: B

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Question 18
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
Correct C. 40
D. 50

Correct Answer: C

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

Correct Answer: B

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Question 20
A firm is operating in a monopolistic competition market. If the firm's demand curve is given by Q = 100 - 2P, and the firm's marginal revenue (MR) is given by MR = 100 - 2Q, what is the firm's optimal quantity?
A. 50
Correct B. 75
C. 100
D. 125

Correct Answer: B

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Question 21
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.
Correct 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.

Correct Answer: B

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Question 22
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. What is the marginal \cost function?
Correct A. 4q + 10
B. 2q + 5
C. q + 5
D. q + 10

Correct Answer: A

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Question 23
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?
Correct A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 0
D. x = 0, y = 15

Correct Answer: A

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Question 24
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
Correct B. ₦60
C. ₦70
D. ₦80

Correct Answer: B

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Question 25
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.
Correct 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.

Correct Answer: B

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