POST UTME FUTO 2025 Economics | Objective

Are you preparing for POST UTME FUTO exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2025 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labour and H is capital. If the firm wants to increase output by 20% and labour by 10%, what percentage increase in capital is required?
A. 5%
B. 10%
Correct C. 15%
D. 20%

Correct Answer: C

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Question 2
A consumer's utility function is given by U = 2x^0.5y^0.5, where x is the quantity of good X and y is the quantity of good Y. If the consumer's income is ₦1000 and the prices of good X and good Y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
A. (20, 10)
Correct B. (15, 15)
C. (10, 20)
D. (5, 25)

Correct Answer: B

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Question 3
A firm's \cost function is given by C = 2L + 3H, where C is \cost, L is labour and H is capital. If the firm wants to minimize \cost and labour is fixed at 10 units, what is the optimal level of capital?
A. 5
Correct B. 10
C. 15
D. 20

Correct Answer: B

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Question 4
A country's GDP is ₦100 billion and its GNP is ₦120 billion. What is the country's net factor income from abroad?
A. ₦10 billion
B. ₦20 billion
Correct C. ₦30 billion
D. ₦40 billion

Correct Answer: C

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Question 5
A consumer's budget constraint is given by 2x + 3y = 12, where x is the quantity of good X and y is the quantity of good Y. If the consumer's utility function is U = x + y, what is the consumer's optimal bundle of goods?
A. (3, 3)
Correct B. (4, 2)
C. (5, 1)
D. (6, 0)

Correct Answer: B

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Question 6
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost is MC = 10. Find the profit-maximizing price and quantity.
A. P = 40, Q = 30
Correct B. P = 50, Q = 25
C. P = 60, Q = 20
D. P = 70, Q = 15

Correct Answer: B

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Question 7
A consumer's utility function is given by U(x, y) = 2x + 3y. The consumer's budget constraint is 2x + 3y = 12. Find the consumer's optimal bundle of x and y.
A. x = 2, y = 4
Correct B. x = 3, y = 3
C. x = 4, y = 2
D. x = 5, y = 1

Correct Answer: B

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Question 8
The demand for a product is given by Q = 100 - 2P. The supply of the product is given by Q = 2P + 10. Find the equilibrium price and quantity.
A. P = 20, Q = 40
Correct B. P = 30, Q = 50
C. P = 40, Q = 60
D. P = 50, Q = 70

Correct Answer: B

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Question 9
A farmer produces wheat and maize. The production functions for wheat and maize are given by W = 2L^0.5 and M = 3L^0.5, respectively. The farmer's budget constraint is 2W + 3M = 12. Find the farmer's optimal allocation of labor between wheat and maize.
A. L = 4, W = 8, M = 4
Correct B. L = 6, W = 6, M = 6
C. L = 8, W = 4, M = 8
D. L = 10, W = 2, M = 10

Correct Answer: B

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Question 10
A government imposes a tax of ₦10 on a product. The demand for the product is given by Q = 100 - 2P. The supply of the product is given by Q = 2P + 10. Find the new equilibrium price and quantity.
A. P = 25, Q = 45
Correct B. P = 30, Q = 50
C. P = 35, Q = 55
D. P = 40, Q = 60

Correct Answer: B

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Question 11
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing quantity and price.
A. 50 units, ₦150
Correct B. 75 units, ₦100
C. 100 units, ₦50
D. 25 units, ₦200

Correct Answer: B

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Question 12
A country's GDP is given by the equation Y = C + I + G + \( X - M \). If the country's GDP is ₦10 trillion, consumption is ₦3 trillion, investment is ₦1 trillion, government sp\ending is ₦2 trillion, exports are ₦2.5 trillion, and imports are ₦1.5 trillion, find the value of net exports.
Correct A. ₦1 trillion
B. ₦1.5 trillion
C. ₦2 trillion
D. ₦2.5 trillion

Correct Answer: A

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Question 13
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output is 100 units and labor is 16 units, find the value of capital.
A. 4 units
B. 6 units
Correct C. 8 units
D. 10 units

Correct Answer: C

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Question 14
A country's balance of payments is given by the equation BOP = X - M + \( F - I \). If the country's BOP is ₦1 trillion, exports are ₦2.5 trillion, imports are ₦1.5 trillion, foreign investment is ₦500 billion, and domestic investment is ₦200 billion, find the value of net foreign exchange earnings.
A. ₦500 billion
B. ₦750 billion
Correct C. ₦1 trillion
D. ₦1.5 trillion

Correct Answer: C

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Question 15
A firm's supply function is given by Q = 2P - 10. If the firm's output is 50 units, find the value of price.
A. ₦20
Correct B. ₦30
C. ₦40
D. ₦50

Correct Answer: B

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Question 16
The concept of scarcity in economics implies that the production of one good is at the expense of another. Which of the following is a correct example of this?
Correct A. A farmer must choose between growing wheat or corn due to limited land
B. A company must decide between investing in a new factory or expanding its current one
C. A consumer must choose between buying a new car or a new house
D. A government must decide between increa\sing taxes or reducing public sp\ending

Correct Answer: A

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Question 17
A firm's demand curve is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price is $20, what is the quantity demanded?
A. 40
Correct B. 60
C. 80
D. 100

Correct Answer: B

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Question 18
A country's GDP is $100 billion, and its GNP is $120 billion. What is the net factor income from abroad?
A. $10 billion
B. $20 billion
Correct C. $30 billion
D. $40 billion

Correct Answer: C

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Question 19
A government imposes a tax on a particular good, which leads to a decrease in its demand. What is the effect on the government's revenue?
A. Increase
Correct B. Decrease
C. No change
D. Uncertain

Correct Answer: B

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Question 20
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 $120 billion, what is the balance of payments?
Correct A. $20 billion deficit
B. $20 billion surplus
C. $10 billion deficit
D. $10 billion surplus

Correct Answer: A

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Question 21
A firm's supply curve is given by the equation Qs = 2P + 10, where Qs is the quantity supplied and P is the price. If the price is $10, what is the quantity supplied?
A. 20
B. 30
Correct C. 40
D. 50

Correct Answer: C

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Question 22
A country's GDP at factor \cost is $100 billion, and its GDP at market price is $120 billion. What is the indirect tax?
A. $10 billion
B. $20 billion
Correct C. $30 billion
D. $40 billion

Correct Answer: C

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Question 23
A government imposes a subsidy on a particular good, which leads to an increase in its demand. What is the effect on the government's revenue?
Correct A. Increase
B. Decrease
C. No change
D. Uncertain

Correct Answer: A

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Question 24
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 $150 billion and the value of imports is $120 billion, what is the balance of payments?
Correct A. $30 billion surplus
B. $30 billion deficit
C. $20 billion surplus
D. $20 billion deficit

Correct Answer: A

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Question 25
A firm's supply curve is given by the equation Qs = 2P + 10, where Qs is the quantity supplied and P is the price. If the price is $15, what is the quantity supplied?
A. 30
B. 40
C. 50
D. 60

Correct Answer: VIEW ANSWER

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