POST UTME FUTA 2017 Economics | Objective

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Question 1
A country's economic growth is influenced by its human capital, natural resources, and techno\logical advancements. However, the relationship between these factors is complex and often non-linear. U\sing a Cobb-Douglas production function, derive the equation for the production of a country's GDP (Y) in terms of its labor force (L), capital stock (K), and techno\logical progress (T).
A. Y = AK^{\alpha}L^{\beta}
B. Y = AK^{\alpha}L^{\beta}T^{\gamma}
C. Y = AK^{\alpha}L^{\beta}T^{\gamma} + \epsilon
D. Y = AK^{\alpha}L^{\beta}T^{\gamma} - \epsilon
Question 2
A country's balance of payments is given by the following equation: BOP = X - M, where X is exports and M is imports. If the country's exports are ₦500 billion and its imports are ₦600 billion, what is the country's balance of payments?
A. ₦-100 billion
B. ₦0 billion
C. ₦100 billion
D. ₦200 billion
Question 3
A country's national income is given by the following equation: NI = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's consumption is ₦500 billion, its investment is ₦200 billion, its government sp\ending is ₦300 billion, its exports are ₦500 billion, and its imports are ₦600 billion, what is its national income?
A. ₦1.5 trillion
B. ₦1.6 trillion
C. ₦1.7 trillion
D. ₦1.8 trillion
Question 4
A country's economic planning involves the formulation of policies to achieve its economic objectives. Which of the following is a tool used in economic planning?
A. Fiscal Policy
B. Monetary Policy
C. Supply-Side Policy
D. Demand-Side Policy
Question 5
A firm's demand curve is given by Q = 100 - 2P. The firm's marginal revenue curve is MR = 20 - 2Q. What is the firm's optimal quantity?
A. 20
B. 30
C. 40
D. 50
Question 6
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current output is 16 units and the current level of capital is 4 units, what is the total product of labor (TPL) when the firm is u\sing 4 units of labor?
A. 32
B. 64
C. 128
D. 256
Question 7
The following table shows the price elasticity of demand for a particular good.
A. The good is elastic.
B. The good is inelastic.
C. The good is unit elastic.
D. The good is perfectly elastic.
Question 8
A country's GDP is given by the equation Y = C + I + G + \( X - M \). If the country's consumption is 500, investment is 200, government sp\ending is 300, exports are 400, and imports are 200, what is the country's GDP?
A. 1200
B. 1300
C. 1400
D. 1500
Question 9
A monopolist faces a demand curve given by Q = 100 - 2P. The firm's marginal \cost is $10. What is the monopolist's optimal price?
A. $40
B. $50
C. $60
D. $70
Question 10
A firm's production function is given by Q = 2K^\( 1/2 \)L^\( 1/2 \), where Q is output, K is capital, and L is labor. If the firm's capital and labor inputs are increased by 10% each, what is the percentage change in output?
A. 5%
B. 10%
C. 15%
D. 20%
Question 11
Consider a country with a GDP of ₦10 trillion and a population of 200 million. If the average annual income is ₦50,000, what is the country's GDP per capita?
A. ₦25,000
B. ₦50,000
C. ₦75,000
D. ₦100,000
Question 12
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
C. $30 billion
D. $40 billion
Question 13
A firm's production function is given by Q = 2L^0.5 K^0.5. If the firm's current input levels are L = 4 and K = 9, and the price of good L is 3 units of good K, find the firm's optimal input levels.
A. (6, 6)
B. (8, 4)
C. (10, 2)
D. (12, 0)
Question 14
A country's elasticity of demand for a particular good is given by the equation E_d = -2P/Q, where E_d is the elasticity of demand, P is the price, and Q is the quantity demanded. If the price of the good is $10 and the quantity demanded is 100 units, calculate the country's elasticity of demand.
A. -0.2
B. -0.5
C. -1
D. -2
Question 15
A government imposes a tax on a firm's output. The firm's supply curve shifts to the left. What is the effect on the firm's equilibrium price and quantity?
A. Price increases and quantity decreases
B. Price decreases and quantity increases
C. Price increases and quantity increases
D. Price decreases and quantity decreases

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