POST UTME FUTO 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolistically competitive firm faces a demand curve with the following equation: Q = 100 - 2P. If the firm's marginal revenue (MR) is given by MR = 200 - 2Q, what is the firm's optimal price?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 2
A firm's \cost function is given by C(L,K) = 2L + 3K. If the firm's output is 100 units and the wage rate is ₦10 per hour, what is the minimum amount of capital the firm should employ?
A. ₦100
B. ₦500
C. ₦1000
D. ₦5000
Question 3
The supply of a product is given by the equation Qs = 50 + 2P, where Qs is the quantity supplied and P is the price. If the price elasticity of supply is 0.8, what is the percentage change in quantity supplied when the price increases by 15%?
A. 12%
B. 15%
C. 18%
D. 20%
Question 4
A firm's production function is given by Q = 2L + 3K. If the firm's \cost function is given by C(L, K) = 2L + 3K + 100, and the firm's revenue function is given by R(L, K) = 4L + 6K, what is the firm's optimal input bundle?
A. L = 2, K = 3
B. L = 3, K = 2
C. L = 4, K = 1
D. L = 1, K = 4
Question 5
A country's budget is given by the equation B = T + I, where B is the budget, T is the tax revenue, and I is the interest payment. If the tax revenue is 100 and the interest payment is 80, what is the budget?
A. 180
B. 200
C. 220
D. 240
Question 6
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 100 units and the wage rate is ₦10 per hour, what is the minimum amount of capital the firm should employ?
A. ₦100
B. ₦500
C. ₦1000
D. ₦5000
Question 7
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12, and the price of x is ₦2 and the price of y is ₦3, what is the consumer's optimal bundle?
A. x = 3, y = 2
B. x = 2, y = 4
C. x = 4, y = 1
D. x = 1, y = 3
Question 8
A firm's demand curve is given by Q = 100 - 2P. If the firm's marginal revenue (MR) is given by MR = 200 - 2Q, find the price at which the firm's marginal revenue equals its marginal \cost (MC).
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 9
A government imposes a tax on a particular good, cau\sing the supply curve to shift to the left. What is the effect on the equilibrium price and quantity of the good?
A. Price increases, quantity decreases
B. Price decreases, quantity increases
C. Price increases, quantity increases
D. Price decreases, quantity decreases
Question 10
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 when the price increases by 10%?
A. 5%
B. 10%
C. 15%
D. 20%
Question 11
A firm is faced with the following production function: Q = 2L + 3K. The firm's \cost function is C = 10L + 20K. What is the firm's profit-maximizing level of L and K?
A. L = 10, K = 5
B. L = 5, K = 10
C. L = 20, K = 15
D. L = 15, K = 20
Question 12
The government of Nigeria has introduced a new policy to increase agricultural production. The policy includes subsidies for fertilizers and seeds, as well as training for farmers. However, the policy also includes a tax on agricultural products. Which of the following is a potential consequence of this policy?
A. An increase in agricultural production
B. A decrease in agricultural production
C. An increase in the price of agricultural products
D. A decrease in the price of agricultural products
Question 13
A firm's production function is given by Q = 2L + 3K. If the firm's \cost function is given by C(L, K) = 2L + 3K + 100, and the firm's revenue function is given by R(L, K) = 4L + 6K, what is the firm's optimal input bundle?
A. L = 2, K = 3
B. L = 3, K = 2
C. L = 4, K = 1
D. L = 1, K = 4
Question 14
A consumer is faced with the following budget constraint: 2x + 3y = 100. The consumer's utility function is U(x, y) = 2x + 3y. What is the consumer's optimal bundle of x and y?
A. x = 20, y = 30
B. x = 30, y = 20
C. x = 40, y = 10
D. x = 10, y = 40
Question 15
A consumer's indifference curve is represented by the equation u(x,y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle?
A. (100, 100)
B. (200, 50)
C. (50, 200)
D. (0, 0)

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