Practice Post UTME FUTO economics 2024 Past Questions

Question 1

A firm's demand curve is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. 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

Correct C. ₦100

D. ₦125

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 2

A country's GDP is ₦100 billion, its imports are ₦20 billion, and its exports are ₦15 billion. What is its net foreign income?

A. ₦5 billion

B. ₦10 billion

Correct C. ₦15 billion

D. ₦20 billion

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 3

A monopolist faces a demand curve given by Q = 100 - 2P. The firm's marginal revenue (MR) is given by MR = 200 - 2Q. If the firm's marginal \cost (MC) is given by MC = 20 + 2Q, find the price at which the firm's marginal revenue equals its marginal \cost.

A. ₦50

B. ₦75

Correct C. ₦100

D. ₦125

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 4

A country's national income is ₦100 billion. If the government imposes a tax of 10% on the national income, what is the amount of tax collected?

A. ₦5 billion

Correct B. ₦10 billion

C. ₦15 billion

D. ₦20 billion

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 5

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

Correct C. ₦100

D. ₦125

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 6

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

Correct C. An increase in the price of agricultural products

D. A decrease in the price of agricultural products

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 7

A consumer is faced with the following utility function: U(x, y) = 2x + 3y. The consumer's income is ₦1000, and the prices of x and y are ₦5 and ₦10, respectively. What is the consumer's optimal bundle of x and y?

Correct A. x = 40, y = 20

B. x = 30, y = 30

C. x = 20, y = 40

D. x = 10, y = 50

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 8

The government of Nigeria has introduced a new tax on luxury goods. The tax is ₦500 per unit of the good. If the price of the good is ₦1000 per unit, what is the total tax revenue collected by the government?

A. ₦250,000

Correct B. ₦500,000

C. ₦750,000

D. ₦1,000,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 9

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?

Correct A. L = 10, K = 5

B. L = 5, K = 10

C. L = 20, K = 15

D. L = 15, K = 20

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 10

The government of Nigeria has introduced a new policy to increase industrial production. The policy includes subsidies for raw materials and training for workers. However, the policy also includes a tax on industrial products. Which of the following is a potential consequence of this policy?

A. An increase in industrial production

B. A decrease in industrial production

Correct C. An increase in the price of industrial products

D. A decrease in the price of industrial products

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 11

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?

Correct A. x = 20, y = 30

B. x = 30, y = 20

C. x = 40, y = 10

D. x = 10, y = 40

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 12

The government of Nigeria has introduced a new tax on luxury goods. The tax is ₦500 per unit of the good. If the price of the good is ₦1000 per unit, what is the total tax revenue collected by the government?

A. ₦250,000

Correct B. ₦500,000

C. ₦750,000

D. ₦1,000,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 13

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?

Correct A. L = 10, K = 5

B. L = 5, K = 10

C. L = 20, K = 15

D. L = 15, K = 20

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 14

Consider a small open economy with a fixed exchange rate. The country's import demand function is given by \( MD = 100 - 2P \), where ( P ) is the price of imports in domestic currency. The supply function of imports is given by \( MS = 200 + 3P \). Assuming the initial price of imports is \( P = 50 \), calculate the equilibrium quantity of imports.

Correct A. 150

B. 200

C. 250

D. 300

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 15

A firm's production function is given by \( Q = 10L^{0.5}K^{0.5} \), where ( L ) is labor and ( K ) is capital. If the firm's current labor and capital inputs are 4 and 9 respectively, calculate the marginal product of labor.

A. 2.5

Correct B. 5

C. 7.5

D. 10

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 16

Consider a country with a population of 10 million people. The demand for a particular good is given by \( Q_d = 100 - 2P \) and the supply function is \( Q_s = 50 + 3P \). If the government imposes a tax of ₦10 per unit on the good, calculate the new equilibrium price and quantity.

A. ₦20, 80

B. ₦25, 60

Correct C. ₦30, 40

D. ₦35, 20

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 17

A firm's \cost function is given by \( C = 100 + 2L + 3K \), where ( L ) is labor and ( K ) is capital. If the firm's current labor and capital inputs are 5 and 8 respectively, calculate the marginal \cost.

A. 2

Correct B. 4

C. 6

D. 8

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 18

Consider a country with a fixed exchange rate. The country's import demand function is given by \( MD = 100 - 2P \), where ( P ) is the price of imports in domestic currency. The supply function of imports is given by \( MS = 200 + 3P \). Assuming the initial price of imports is \( P = 50 \), calculate the equilibrium quantity of imports.

Correct A. 150

B. 200

C. 250

D. 300

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 19

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

Correct C. ₦100

D. ₦125

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 20

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?

Correct A. x = 3, y = 2

B. x = 2, y = 4

C. x = 4, y = 1

D. x = 1, y = 3

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 21

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?

Correct A. L = 2, K = 3

B. L = 3, K = 2

C. L = 4, K = 1

D. L = 1, K = 4

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 22

A country's GDP is given by GDP = C + I + G + \( X - M \). If the country's consumption function is given by C = 100 + 0.8Y, the country's investment function is given by I = 50 + 0.2Y, the country's government sp\ending function is given by G = 200, and the country's trade balance function is given by \( X - M \) = 100, what is the country's GDP?

A. ₦1000

B. ₦1200

Correct C. ₦1500

D. ₦1800

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 23

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?

Correct A. L = 2, K = 3

B. L = 3, K = 2

C. L = 4, K = 1

D. L = 1, K = 4

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 24

A country's GDP is given by GDP = C + I + G + \( X - M \). If the country's consumption function is given by C = 100 + 0.8Y, the country's investment function is given by I = 50 + 0.2Y, the country's government sp\ending function is given by G = 200, and the country's trade balance function is given by \( X - M \) = 100, what is the country's GDP?

A. ₦1000

B. ₦1200

Correct C. ₦1500

D. ₦1800

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 25

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?

Correct A. L = 2, K = 3

B. L = 3, K = 2

C. L = 4, K = 1

D. L = 1, K = 4

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

POST UTME FUTO 2024 Economics | Objective

Master the Exam!

Help others prepare! Share this practice hub: