POST UTME FUTA 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Consider a country that imports 100 units of a good from another country and exports 50 units of another good to that country. If the terms of trade are given by the ratio of export price to import price, what is the value of the terms of trade?
A. ( 0.5 )
B. ( 1 )
C. ( 1.5 )
D. ( 2 )
Question 2
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is given by Qd = 100 - 2P and the supply curve is given by Qs = 10 + 3P, what is the equilibrium price and quantity?
A. \( P = 20, Q = 40 \)
B. \( P = 30, Q = 50 \)
C. \( P = 40, Q = 60 \)
D. \( P = 50, Q = 70 \)
Question 3
A firm has a revenue function given by R = 2Q^2 - 10Q + 100. If the firm's \cost function is given by C = Q^2 + 5Q + 50, what is the firm's profit function?
A. π = 3Q^2 - 15Q + 50
B. π = 2Q^2 - 10Q + 50
C. π = Q^2 - 5Q + 50
D. π = Q^2 + 5Q + 50
Question 4
A consumer's indifference curve is given 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. x = 100, y = 200
B. x = 150, y = 150
C. x = 200, y = 100
D. x = 250, y = 50
Question 5
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 firm's supply curve is given by the equation Qs = 2P - 50, where Qs is the quantity supplied, find the equilibrium price and quantity.
A. P = 25, Q = 75
B. P = 50, Q = 100
C. P = 75, Q = 125
D. P = 100, Q = 150
Question 6
A government imposes a tax of ₦10 per unit on a firm's output. If the firm's supply curve is given by Q = 2P - 10 and the demand curve is given by Q = 100 - P, what is the firm's new supply curve?
A. Q = 2P - 20
B. Q = 2P - 15
C. Q = 2P - 10
D. Q = 2P + 5
Question 7
A government imposes a tax of ₦10 on a good that sells for ₦20. If the supply curve is given by \( Q = 2P - 10 \), where Q is quantity and P is price, what is the new equilibrium price?
A. ₦10
B. ₦15
C. ₦20
D. ₦25
Question 8
U\sing the concept of opportunity \cost, explain why a firm may choose to produce a smaller quantity of a product at a higher price rather than a larger quantity at a lower price.
A. The firm values the product's quality over its quantity.
B. The firm is willing to pay a premium for the product's brand reputation.
C. The firm is experiencing opportunity \cost, making the higher price more acceptable.
D. The firm is trying to save money by buying in bulk.
Question 9
A firm is producing a good u\sing two inputs, labor and capital. The production function is given by Q = 2L^0.5K^0.5. What is the marginal product of labor (MPL) when L = 4 and K = 9?
A. MPL = 1.5
B. MPL = 2.5
C. MPL = 3.5
D. MPL = 4.5
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 monopolist faces a market demand curve given by Qd = 100 - 2P and a marginal revenue curve given by MR = 20 - 2P. If the firm's marginal \cost is cons\tant at MC = 10, what is the profit-maximizing price and quantity?
A. \( P = 30, Q = 50 \)
B. \( P = 40, Q = 60 \)
C. \( P = 50, Q = 70 \)
D. \( P = 60, Q = 80 \)
Question 12
A firm's production function is given by the equation Q = 2L^0.5K^0.5, where Q is the quantity produced, L is labor, and K is capital. If the firm has 100 units of labor and 100 units of capital, find the quantity produced.
A. 100 units
B. 200 units
C. 300 units
D. 400 units
Question 13
A consumer's utility function is given by U = 2x + 3y. If the consumer's budget constraint is given by 2x + 3y = 100, what is the consumer's optimal bundle?
A. x = 20, y = 30
B. x = 30, y = 20
C. x = 40, y = 10
D. x = 10, y = 40
Question 14
Consider a country that has a trade balance of $100 million and a current account deficit of $200 million. If the country's exchange rate is given by the ratio of the trade balance to the current account deficit, what is the value of the exchange rate?
A. ( 0.5 )
B. ( 1 )
C. ( 1.5 )
D. ( 2 )
Question 15
A country's GDP is increa\sing at a rate of 5% per annum, while its population is increa\sing at a rate of 2% per annum. What is the effect on the country's per capita income?
A. Per capita income is increa\sing at a rate of 3% per annum.
B. Per capita income is increa\sing at a rate of 5% per annum.
C. Per capita income is decrea\sing at a rate of 2% per annum.
D. Per capita income is cons\tant.

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