Exam Body

Year

Subject

Paper Type

POST UTME FUTA 2017 Economics | Objective

Are you preparing for POST UTME FUTA exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2017 Economics (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1

A firm's demand curve is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's revenue function is R(P) = P$ 100 - 2P $, find the price at which the firm's revenue is maximized.

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

The following diagram shows the supply and demand curves for a particular good.

A. The equilibrium price is ₦50.

B. The equilibrium quantity is 100 units.

C. The supply curve is upward-sloping.

Correct D. The demand curve is downward-sloping.

Correct Answer: D

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

Question 3

A country's GDP is given by the equation Y = C + I + G, where Y is the GDP, C is the consumption, I is the investment, and G is the government sp\ending. If the country's consumption is ₦100 billion, its investment is ₦50 billion, and its government sp\ending is ₦75 billion, find the country's GDP.

A. ₦225 billion

Correct B. ₦250 billion

C. ₦275 billion

D. ₦300 billion

Correct Answer: B

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

Question 4

The following table shows the price elasticity of demand for a particular good.

Correct A. The good is elastic.

B. The good is inelastic.

C. The good is unit elastic.

D. The good is perfectly elastic.

Correct Answer: A

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

Question 5

A central bank increases the reserve requirement for commercial banks. What is the effect on the money supply?

A. The money supply increases.

Correct B. The money supply decreases.

C. The money supply remains unchanged.

D. The money supply becomes perfectly elastic.

Correct Answer: B

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

Question 6

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}

Correct 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

Correct Answer: B

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

Question 7

A firm's demand for a particular input is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price of the input. If the firm's revenue function is R = PQ, derive the equation for the firm's marginal revenue (MR) in terms of the price (P) and quantity (Q) of the input.

A. MR = P

B. MR = P + Q

C. MR = P - Q

Correct D. MR = P \cdot Q

Correct Answer: D

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

Question 8

A country's balance of payments (BOP) accounts are given by the equation BOP = X - M, where X is the country's exports and M is its imports. If the country's exports are $100 billion and its imports are $120 billion, calculate the country's BOP deficit or surplus.

Correct A. $20 billion deficit

B. $20 billion surplus

C. $40 billion deficit

D. $40 billion surplus

Correct Answer: A

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

Question 9

A firm's supply curve is given by the equation Q = 50 + 2P, where Q is the quantity supplied and P is the price. If the firm's demand curve is given by the equation Q = 100 - 2P, derive the equation for the firm's equilibrium quantity $ Q* $ in terms of the price (P).

A. Q* = 25

B. Q* = 50

Correct C. Q* = 75

D. Q* = 100

Correct Answer: C

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

Question 10

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.

Correct A. -0.2

B. -0.5

C. -1

D. -2

Correct Answer: A

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

Question 11

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%

Correct C. 15%

D. 20%

Correct Answer: C

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

Question 12

A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost curve is MC = 10. What is the monopolist's optimal price?

A. 20

B. 30

Correct C. 40

D. 50

Correct Answer: C

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

Question 13

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

Correct D. 1500

Correct Answer: D

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

Question 14

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

Correct C. 40

D. 50

Correct Answer: C

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

Question 15

A country's government imposes a tax on a good, cau\sing the supply curve to shift from S to S'. The demand curve is given by Q = 100 - 2P. What is the new equilibrium price?

A. 20

B. 30

Correct C. 40

D. 50

Correct Answer: C

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

Question 16

The opportunity \cost of producing an additional unit of a good is the value of the next best alternative that is given up. If the opportunity \cost of producing an additional unit of a good is ₦100, what is the opportunity \cost of producing 5 additional units of the good?

Correct A. ₦500

B. ₦200

C. ₦50

D. ₦10

Correct Answer: A

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

Question 17

A country's balance of payments (BOP) is a statistical statement that summarizes all economic transactions between residents and non-residents over a specific period. Which of the following is NOT a component of the BOP?

A. Current Account

B. Capital Account

C. Financial Account

Correct D. Goods and Services Account

Correct Answer: D

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

Question 18

The demand for a good is said to be inelastic if a change in the price of the good leads to a relatively small change in the quantity demanded. Which of the following is a characteristic of an inelastic demand curve?

A. The demand curve is downward sloping

B. The demand curve is upward sloping

C. The demand curve is horizontal

Correct D. The demand curve is vertical

Correct Answer: D

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

Question 19

A government's budget is a plan for how it int\ends to raise revenue and sp\end its money. Which of the following is a type of government budget?

Correct A. Fiscal Budget

B. Monetary Budget

C. Fiscal-Monetary Budget

D. Public Budget

Correct Answer: A

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

Question 20

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?

Correct A. Fiscal Policy

B. Monetary Policy

C. Supply-Side Policy

D. Demand-Side Policy

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^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 marginal product of labor (MPL) when the firm is u\sing 4 units of labor?

A. 2

B. 4

Correct C. 8

D. 16

Correct Answer: C

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

Question 22

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

Correct B. $20 billion

C. $30 billion

D. $40 billion

Correct Answer: B

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

Question 23

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

Correct C. $60

D. $70

Correct Answer: C

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

Question 24

A country's balance of payments account shows a trade deficit of $10 billion and a current account deficit of $15 billion. What is the country's capital account surplus?

A. $5 billion

B. $10 billion

C. $15 billion

Correct D. $20 billion

Correct Answer: D

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^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

Correct C. 128

D. 256

Correct Answer: C

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

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows

Help others prepare! Share this practice hub:

Chat with Support