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?
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?
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?
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.
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.
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?
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?
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?
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?
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?
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?
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.
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?
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?
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?
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