POST UTME FUTO 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's GDP is given by GDP = C + I + G + \( X - M \). If the country's consumption is ₦500 billion, investment is ₦200 billion, government sp\ending is ₦300 billion, exports are ₦400 billion, and imports are ₦200 billion, what is the country's GDP?
A. ₦1.5 trillion
B. ₦1.6 trillion
C. ₦1.7 trillion
D. ₦1.8 trillion
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm has 100 units of labor and 200 units of capital, what is the firm's output?
A. 100
B. 200
C. 300
D. 400
Question 3
A central bank increases the reserve requirement for commercial banks. What is the likely effect on the money supply?
A. Increase in money supply
B. Decrease in money supply
C. No change in money supply
D. Uncertainty in money supply
Question 4
A firm's total revenue is given by the equation TR = 100Q - 2Q^2, where Q is the quantity sold. What is the marginal revenue?
A. 100 - 4Q
B. 100 + 4Q
C. 100Q - 2Q^2
D. 2Q^2 - 100Q
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor increases by 20% and the price of capital increases by 15%, what is the new production level?
A. 80
B. 90
C. 100
D. 110
Question 6
The following diagram shows the supply and demand curves for a product. What is the equilibrium price and quantity?
A. Price = ₦100, Quantity = 50
B. Price = ₦150, Quantity = 30
C. Price = ₦200, Quantity = 20
D. Price = ₦250, Quantity = 10
Question 7
A monopolist faces a demand curve given by P = 100 - 2q. If the firm's marginal \cost is 10, what is the optimal quantity to produce?
A. 20
B. 30
C. 40
D. 50
Question 8
A country's GDP is given by the formula GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP is 100, consumption is 30, investment is 20, government sp\ending is 10, exports are 20, and imports are 10, what is the value of X?
A. 30
B. 40
C. 50
D. 60
Question 9
A country's balance of payments account is given by the following equation: BOP = X - M + F - I. If the country's exports (X) are ₦100 billion, imports (M) are ₦80 billion, foreign investment (F) is ₦20 billion, and domestic investment (I) 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
Question 10
A monopoly firm's demand curve is given by Q = 100 - 2P. If the firm's marginal revenue (MR) is ₦20, what is the price elasticity of demand?
A. -1
B. -2
C. -3
D. -4
Question 11
The government of Nigeria has implemented a policy to increase the tax rate by 10%. If the current tax revenue is ₦100 billion, what is the new tax revenue?
A. ₦110 billion
B. ₦105 billion
C. ₦100 billion
D. ₦95 billion
Question 12
A consumer has a utility function given by U = 2x + 3y. If the prices of x and y are $5 and $10 respectively, and the consumer has a budget of $50, what is the optimal consumption bundle?
A. x = 5, y = 2
B. x = 10, y = 5
C. x = 15, y = 10
D. x = 20, y = 15
Question 13
A firm's demand function is given by q = 50 - 2P. If the firm's revenue is 1000, what is the price?
A. 20
B. 30
C. 40
D. 50
Question 14
A firm's average total \cost curve intersects its marginal \cost curve at point E, where MC = ATC. If the firm is currently producing at point E, and the price of the good is P = 10, what is the firm's economic profit?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 15
The concept of scarcity in economics implies that the production of one good is limited by the availability of resources that could be used to produce other goods. Which of the following is a correct statement about the opportunity \cost of producing one good?
A. The opportunity \cost is the value of the next best alternative good that could have been produced with the same resources.
B. The opportunity \cost is the value of the next best alternative good that could have been consumed with the same resources.
C. The opportunity \cost is the value of the next best alternative good that could have been produced with the same resources, but not consumed.
D. The opportunity \cost is the value of the next best alternative good that could have been consumed with the same resources, but not produced.

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