POST UTME FUTO 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, and the current output price is p = 50, what is the firm's optimal input combination?
A. (L, K) = (100, 100)
B. (L, K) = (50, 50)
C. (L, K) = (200, 200)
D. (L, K) = (150, 150)
Question 2
A monopolist faces a demand curve given by the equation Qd = 100 - 2P and a marginal revenue curve given by the equation MR = 200 - 4P. What is the price at which the monopolist will maximize profits?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 3
A country's balance of payments is given by the equation BOP = X - M, where X is the value of exports and M is the value of imports. If the value of exports is ₦100 billion and the value of imports is ₦80 billion, find the balance of payments.
A. ₦20 billion
B. ₦40 billion
C. ₦60 billion
D. ₦80 billion
Question 4
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. The supply of the product is given by the equation Qs = 2P - 100, where Qs is the quantity supplied and P is the price. If the market is in equilibrium, what is the price of the product?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 5
A firm's production function is given by Q = 2L + 3K. The firm's \cost function is given by C = 10L + 20K. Find the firm's profit-maximizing values of L and K.
A. L = 5, K = 10
B. L = 10, K = 5
C. L = 15, K = 20
D. L = 20, K = 15
Question 6
A firm is producing a homogeneous product in a perfectly competitive market. If the market demand curve is given by Qd = 100 - 2P and the supply curve is given by Qs = 2P - 20, find the firm's profit-maximizing output and price.
A. ₦40, 60
B. ₦30, 40
C. ₦20, 20
D. ₦10, 10
Question 7
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, what is the price at which the quantity demanded is 80?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 8
A country's inflation rate is 5% per annum. If the current price level is ₦100, find the price level after 2 years.
A. ₦105
B. ₦110
C. ₦115
D. ₦120
Question 9
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, what is the percentage change in quantity demanded if the price increases by 10%?
A. -5%
B. -10%
C. -15%
D. -20%
Question 10
A firm is producing a product with a fixed \cost of ₦50,000 and a variable \cost of ₦10 per unit. If the selling price is ₦20 per unit, what is the break-even point?
A. 2,500 units
B. 5,000 units
C. 7,500 units
D. 10,000 units
Question 11
A firm is considering two different production processes. Process A has a fixed \cost of ₦100,000 and a variable \cost of ₦50 per unit. Process B has a fixed \cost of ₦150,000 and a variable \cost of ₦30 per unit. If the firm produces 1,000 units, which process will result in lower total \cost?
A. Process A
B. Process B
C. Both processes have the same total \cost
D. Neither process has a lower total \cost
Question 12
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, what is the price at which the quantity demanded is 80?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 13
A government imposes a tax on a product, which shifts the supply curve to the left. If the demand curve is inelastic and the supply curve is elastic, what will happen to the price and quantity of the product?
A. Price increases, quantity decreases
B. Price decreases, quantity increases
C. Price increases, quantity increases
D. Price decreases, quantity decreases
Question 14
A country's GDP is ₦100 billion, its GNP is ₦120 billion, and its net factor income from abroad is ₦10 billion. Find the country's national income.
A. ₦110 billion
B. ₦120 billion
C. ₦130 billion
D. ₦140 billion
Question 15
A firm's production function is given by Q = 3L^0.5K^0.5. If the firm's current input prices are w = 15 and r = 25, and the current output price is p = 75, what is the firm's optimal input combination?
A. (L, K) = (150, 150)
B. (L, K) = (200, 200)
C. (L, K) = (250, 250)
D. (L, K) = (300, 300)

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