POST UTME FUTO 2018 Economics | Objective

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Question 1
A country's GDP is ₦1,500 billion and its GNP is ₦1,600 billion. What is the country's net factor income from abroad?
A. ₦100 billion
B. ₦200 billion
C. ₦300 billion
D. ₦400 billion
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. What is the marginal revenue (MR) of the firm?
A. 98
B. 100
C. 102
D. 104
Question 3
A firm's total revenue (TR) is given by TR = 100Q - 2Q^2. If the firm's marginal \cost (MC) is given by MC = 10 + 2Q, what is the firm's optimal output?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 4
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor (w) is ₦100 per unit and the price of capital (r) is ₦50 per unit, calculate the value of the elasticity of labor with respect to output.
A. 0.5
B. 1
C. 2
D. 3
Question 5
A firm's production function is given by \( Q = 2L^2 + 3K \), where ( L ) is labor and ( K ) is capital. If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, and the firm's budget constraint is ₦10,000, what is the optimal combination of labor and capital that the firm should employ?
A. \( L = 10, K = 20 \)
B. \( L = 20, K = 10 \)
C. \( L = 15, K = 15 \)
D. \( L = 25, K = 5 \)
Question 6
A country is experiencing a trade deficit due to a large imbalance in its balance of payments. Which of the following policies would help to reduce the trade deficit?
A. Devaluation of the currency
B. Increase in import tariffs
C. Reduction in export subsidies
D. Increase in foreign aid
Question 7
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 100 units and the price of labor is ₦500 per unit, what is the opportunity \cost of one unit of labor?
A. ₦250
B. ₦500
C. ₦750
D. ₦1000
Question 8
A monopolist faces a demand curve given by the equation P = 100 - 2x. What is the price elasticity of demand (PED) at a quantity of 20 units?
A. -1
B. -2
C. -3
D. -4
Question 9
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 100 units and the price of labor is ₦500 per unit, what is the opportunity \cost of one unit of labor?
A. ₦250
B. ₦500
C. ₦750
D. ₦1000
Question 10
A firm's production function is given by Q = L^0.5K^0.5. If the price of labor (w) is ₦100 per unit and the price of capital (r) is ₦50 per unit, calculate the value of the elasticity of capital with respect to output.
A. 0.5
B. 1
C. 2
D. 3
Question 11
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor (w) is ₦100 per unit and the price of capital (r) is ₦50 per unit, calculate the value of the elasticity of labor with respect to output.
A. 0.5
B. 1
C. 2
D. 3
Question 12
A firm's \cost function is given by the equation C(x) = 100 + 2x + 0.5x^2. What is the marginal \cost (MC) of the firm?
A. 2 + x
B. 3 + 0.5x
C. 4 + x
D. 5 + 0.5x
Question 13
A monopolist faces a demand curve given by Q = 100 - 2P. If the monopolist's marginal revenue (MR) is given by MR = 200 - 4Q, what is the monopolist's optimal price?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 14
A consumer's indifference curve is represented by the equation \( u = 2x + 3y \), where (u) is the level of satisfaction and (x) and (y) are the quantities of two goods. If the consumer's income is ₦1,000 and the prices of the two goods are ₦200 and ₦300 respectively, what is the consumer's optimal bundle of goods?
A. (2, 3)
B. (4, 2)
C. (6, 1)
D. (8, 0)
Question 15
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \). If the country's exports are ₦100 billion, imports are ₦80 billion, foreign investment is ₦20 billion, and domestic investment is ₦30 billion, what is the balance of payments?
A. ₦10 billion surplus
B. ₦20 billion deficit
C. ₦30 billion surplus
D. ₦40 billion deficit

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