POST UTME FUTA 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's GDP is given by the equation Y = C + I + G + \( X - M \), where Y is the GDP, C is the consumption, I is the investment, G is the government sp\ending, X is the exports and M is the imports. If the country's GDP is 100, consumption is 30, investment is 20, government sp\ending is 15, exports are 25 and imports are 10, what is the value of the marginal propensity to save?
A. 0.3
B. 0.4
C. 0.5
D. 0.6
Question 2
A monopolist has a demand curve given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the monopolist's marginal \cost is 10, what is the optimal price and quantity?
A. P = 20, Q = 40
B. P = 25, Q = 50
C. P = 30, Q = 60
D. P = 35, Q = 70
Question 3
A consumer's indifference curve is downward sloping. Which of the following is a consequence of this?
A. The consumer is willing to give up more of one good to get more of another.
B. The consumer is willing to give up less of one good to get more of another.
C. The consumer is indifferent between two bundles of goods.
D. The consumer is willing to give up the same amount of one good to get more of another.
Question 4
A firm's production function is given by the equation Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm wants to produce 100 units of output, find the required labor and capital.
A. L = 25, K = 25
B. L = 50, K = 50
C. L = 100, K = 100
D. L = 200, K = 200
Question 5
A firm has a production function given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor and K is the capital. If the firm is currently u\sing 4 units of labor and 9 units of capital, what is the marginal product of labor?
A. 0.5
B. 1
C. 1.5
D. 2
Question 6
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 7
A country's GDP is given by the equation Y = C + I + G + \( X - M \), where Y is the GDP, C is the consumption, I is the investment, G is the government sp\ending, X is the exports and M is the imports. If the country's GDP is 100, consumption is 30, investment is 20, government sp\ending is 15, exports are 25 and imports are 10, what is the value of the marginal propensity to consume?
A. 0.3
B. 0.4
C. 0.5
D. 0.6
Question 8
A firm is producing at its optimal level of output. Which of the following is a consequence of this?
A. The firm's marginal \cost is equal to its marginal revenue.
B. The firm's average \cost is equal to its average revenue.
C. The firm's total revenue is maximized.
D. The firm's profit is maximized.
Question 9
A monopolist has a demand curve given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the monopolist's marginal \cost is 10, what is the optimal price and quantity?
A. P = 20, Q = 40
B. P = 25, Q = 50
C. P = 30, Q = 60
D. P = 35, Q = 70
Question 10
Suppose 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 supply function is Qs = 2P - 10, find the equilibrium price and quantity.
A. P = 20, Q = 30
B. P = 15, Q = 25
C. P = 10, Q = 20
D. P = 5, Q = 15
Question 11
A firm is producing at a level of output where its marginal \cost is equal to its marginal revenue. Which of the following is a consequence of this?
A. The firm's total revenue is maximized.
B. The firm's total \cost is minimized.
C. The firm's profit is maximized.
D. The firm's average \cost is equal to its average revenue.
Question 12
A firm has a production function given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor and K is the capital. If the firm is currently u\sing 4 units of labor and 9 units of capital, what is the marginal product of capital?
A. 0.5
B. 1
C. 1.5
D. 2
Question 13
A firm's \cost function is given by C(x) = 2x^2 + 10x + 5. If the firm's revenue function is R(x) = 20x - 2x^2, find the profit-maximizing level of output.
A. 5 units
B. 10 units
C. 15 units
D. 20 units
Question 14
A country's balance of payments is in equilibrium. Which of the following is a consequence of this?
A. The country's exchange rate is overvalued.
B. The country's exchange rate is undervalued.
C. The country's exchange rate is at its equilibrium value.
D. The country's exchange rate is floating.
Question 15
A country's inflation rate is given by the equation \pi = \frac{M}{V}, where \pi is the inflation rate, M is the money supply and V is the velocity of money. If the country's inflation rate is 10%, money supply is 100 and velocity of money is 10, what is the value of the money supply?
A. 100
B. 200
C. 300
D. 400

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