POST UTME FUTO 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is producing a good with a production function of Q = 2L^0.5K^0.5. If the price of the good is $10 and the wage rate is $20 per hour, and the rental rate of capital is $15 per hour, what is the profit-maximizing level of labor and capital?
A. L = 10, K = 10
B. L = 20, K = 20
C. L = 5, K = 5
D. L = 15, K = 15
Question 2
A country is experiencing a recession and the government is considering implementing a fiscal policy to stimulate the economy. If the government increases government sp\ending by $100 billion and the marginal propensity to consume is 0.8, what is the multiplier effect on aggregate demand?
A. $80 billion
B. $100 billion
C. $120 billion
D. $150 billion
Question 3
A government wants to reduce the budget deficit by increa\sing taxes. If the government increases the tax rate by 10%, what is the new tax revenue?
A. ₦100 million
B. ₦110 million
C. ₦120 million
D. ₦130 million
Question 4
A country's GDP is given by the equation Y = C + I + G. If the country's current GDP is ₦100 billion, and the government's current exp\enditure is ₦20 billion, while the country's current investment is ₦30 billion, calculate the country's current consumption.
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 5
A firm's total revenue is given by the equation \( TR = 100x - 2x^2 \) and its total \cost is given by the equation \( TC = 50x + 100 \). Find the firm's profit-maximizing level of output.
A. 10
B. 20
C. 30
D. 40
Question 6
A monopoly firm produces a product with a cons\tant marginal \cost of ₦10 and a demand function Q = 100 - 2P. If the firm's objective is to maximize profit, what is the optimal price and quantity to produce?
A. P = ₦20, Q = 40
B. P = ₦30, Q = 60
C. P = ₦40, Q = 80
D. P = ₦50, Q = 100
Question 7
A consumer's utility function is given by U(x,y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the optimal combination of x and y?
A. x = 100, y = 50
B. x = 150, y = 25
C. x = 200, y = 0
D. x = 0, y = 100
Question 8
A country is experiencing a trade deficit and the government is considering implementing a trade policy to reduce the deficit. If the country imports $100 billion worth of goods and services and exports $80 billion worth of goods and services, what is the trade deficit?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion
Question 9
A firm is producing a good with the following production function: Q = 2L^0.5K^0.5. If the price of the good is $10 and the price of labor is $5 per unit, and the price of capital is $10 per unit, what is the optimal level of labor and capital for the firm?
A. L = 100, K = 100
B. L = 50, K = 50
C. L = 200, K = 200
D. L = 150, K = 150
Question 10
A firm is producing a good with a production function of Q = 2L^0.5K^0.5. If the price of the good is $10 and the wage rate is $20 per hour, and the rental rate of capital is $15 per hour, what is the profit-maximizing level of labor and capital?
A. L = 10, K = 10
B. L = 20, K = 20
C. L = 5, K = 5
D. L = 15, K = 15
Question 11
A consumer's budget constraint is given by 2x + 3y = 100, where x and y are the quantities of two goods consumed. If the consumer's utility function is U(x,y) = 2x + 3y, what is the optimal combination of x and y?
A. x = 20, y = 20
B. x = 30, y = 10
C. x = 40, y = 0
D. x = 0, y = 33.33
Question 12
The demand for a product is given by the equation \( Q_d = 100 - 2P \) and the supply is given by the equation \( Q_s = 2P \). Find the equilibrium price and quantity.
A. (20, 40)
B. (30, 60)
C. (40, 80)
D. (50, 100)
Question 13
A government seeks to reduce poverty by implementing a cash transfer program. The program provides a monthly stip\end to low-income households. If the program is successful in reducing poverty, which of the following is a likely consequence?
A. An increase in the poverty rate
B. A decrease in the poverty rate
C. No change in the poverty rate
D. An increase in the income inequality
Question 14
A country is experiencing a recession and the government wants to stimulate the economy. The government can either increase government sp\ending or cut taxes. Which policy is more effective in stimulating the economy?
A. Increa\sing government sp\ending
B. Cutting taxes
C. Both policies are equally effective
D. Neither policy is effective
Question 15
A country's balance of payments is given by the following equation: BOP = X - M. If the country's exports (X) are ₦100 billion and imports (M) are ₦80 billion, what is the balance of payments?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion

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