POST UTME FUTO 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is operating in a perfectly competitive market. If the firm's marginal revenue (MR) is ₦100 and the price (P) is ₦120, what is the firm's marginal \cost (MC)?
A. ₦80
B. ₦90
C. ₦100
D. ₦110
Question 2
A firm has a production function given by Q = 2L^0.5K^0.5. If the price of the good is $10 and the wage rate is $5, what is the optimal level of labor (L) if the firm wants to maximize its profit?
A. 10
B. 20
C. 30
D. 40
Question 3
A consumer's 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 consumer's income increases by 10%, find the new demand equation.
A. Qd = 110 - 2P
B. Qd = 120 - 2P
C. Qd = 130 - 2P
D. Qd = 140 - 2P
Question 4
Consider a firm operating in a perfectly competitive market with a production function given by Q = 2L^0.5K^0.5. If the price of the good is $10 and the wage rate is $5, what is the optimal level of labor (L) if the firm wants to maximize its profit?
A. 10
B. 20
C. 30
D. 40
Question 5
A firm's \cost function is given by the equation C(q) = 50 + 2q^2, where q is the quantity produced. If the firm's revenue function is TR(q) = 100q - 2q^2, find the profit function.
A. \text{Profit} = 50q - 4q^2
B. \text{Profit} = 50q + 4q^2
C. \text{Profit} = 100q - 4q^2
D. \text{Profit} = 100q + 4q^2
Question 6
A consumer's indifference curve is given by the equation y = -2x + 10, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
A. (20, 10)
B. (30, 5)
C. (40, 0)
D. (0, 100)
Question 7
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 = ₦100 and r = ₦200, and it is currently producing 100 units of output, what is the firm's current marginal \cost?
A. ₦10
B. ₦20
C. ₦30
D. ₦40
Question 8
A consumer's 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 consumer's income increases by 10%, find the new demand equation.
A. Qd = 110 - 2P
B. Qd = 120 - 2P
C. Qd = 130 - 2P
D. Qd = 140 - 2P
Question 9
A consumer has the following utility function: U = 2x + 3y. The prices of x and y are $2 and $3 respectively. If the consumer has a budget of $15, what is the optimal bundle of x and y?
A. x = 3, y = 2
B. x = 2, y = 3
C. x = 4, y = 1
D. x = 1, y = 4
Question 10
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
A. (20, 10)
B. (30, 5)
C. (40, 0)
D. (0, 100)
Question 11
Consider a monetary policy where the central bank increases the money supply by 10%. If the initial money supply is ₦1 trillion and the velocity of money is 2, what is the new money supply?
A. ₦1.1 trillion
B. ₦1.2 trillion
C. ₦1.3 trillion
D. ₦1.4 trillion
Question 12
A firm's \cost function is given by the equation C(q) = 50 + 2q^2, where q is the quantity produced. If the firm's revenue function is TR(q) = 100q - 2q^2, find the profit function.
A. \text{Profit} = 50q - 4q^2
B. \text{Profit} = 50q + 4q^2
C. \text{Profit} = 100q - 4q^2
D. \text{Profit} = 100q + 4q^2
Question 13
The government of Nigeria imposes a tax of ₦10 per ki\logram on maize. If the price of maize is ₦150 per ki\logram, what is the new price?
A. ₦160
B. ₦170
C. ₦180
D. ₦190
Question 14
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor and H is capital. If the firm wants to increase output by 20% while keeping labor cons\tant, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 15
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. If the equilibrium price is 50, what is the equilibrium quantity?
A. 200
B. 150
C. 100
D. 50

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