POST UTME FUTA 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's total revenue (TR) is given by the equation TR = 100q - 2q^2, where q is the quantity sold. If the firm's marginal revenue (MR) is 80, what is the value of q?
A. 10
B. 20
C. 30
D. 40
Question 2
Consider a firm operating in a perfectly competitive market with a given production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 per unit of labor and r = ₦200 per unit of capital, and the market wage and rental rates are w = ₦120 per unit of labor and r = ₦220 per unit of capital, respectively, what is the optimal input combination for the firm?
A. L = 100, K = 100
B. L = 120, K = 220
C. L = 150, K = 150
D. L = 200, K = 200
Question 3
A consumer has the following utility function: U = x^2 + 2y^2. The prices of x and y are ₦20 and ₦30, respectively. If the consumer's income is ₦100, what is the optimal bundle of x and y?
A. x = 5, y = 2
B. x = 10, y = 5
C. x = 15, y = 3
D. x = 20, y = 4
Question 4
A consumer's utility function is given by the equation \( U = 2x + 3y - xy \), where ( x ) and ( y ) are the quantities of two goods consumed. If the consumer's budget constraint is given by the equation \( 2x + 3y = 100 \), what is the value of the marginal rate of substitution between the two goods?
A. 1
B. 2
C. 3
D. 4
Question 5
A firm is producing a good with the following \cost and revenue functions: C(q) = 2q^2 + 10q and R(q) = 3q^2 - 5q. What is the profit-maximizing quantity?
A. 5
B. 10
C. 15
D. 20
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 -2, what is the percentage change in quantity demanded when the price increases by 10%?
A. -20%
B. -10%
C. 0%
D. 10%
Question 7
A firm's \cost function is given by the equation \( C = 100 + 2q + 0.01q^2 \), where ( q ) is the quantity produced. If the firm's revenue function is given by the equation \( R = 200q - 0.5q^2 \), what is the value of the marginal \cost at a quantity of 100 units?
A. ₦200
B. ₦250
C. ₦300
D. ₦350
Question 8
A government budget is given by the equation \( B = 1000 + 0.5Y - 0.01Y^2 \), where ( Y ) is the level of economic activity. If the government budget is balanced at a level of economic activity of ₦100 billion, what is the value of the marginal propensity to consume?
A. 0.5
B. 0.6
C. 0.7
D. 0.8
Question 9
A government's budget is given by the equation \( B = 1000 + 0.5Y - 0.01Y^2 \), where ( Y ) is the level of economic activity. If the government's tax revenue is given by the equation \( T = 0.2Y \), what is the value of the marginal tax rate?
A. 0.2
B. 0.3
C. 0.4
D. 0.5
Question 10
The following table shows the production \costs for a firm that produces two goods, A and B. If the firm wants to produce 10 units of good A, and the price of good A is ₦50 per unit, and the price of good B is ₦100 per unit, how much should the firm sp\end on labor and capital?
A. ₦5000
B. ₦10000
C. ₦15000
D. ₦20000
Question 11
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm's labor and capital inputs are 4 and 9 respectively, what is the value of the marginal product of labor?
A. 0.5
B. 1
C. 2
D. 3
Question 12
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's income is ₦100 and the prices of the two goods are ₦20 and ₦30 respectively, what is the consumer's optimal bundle?
A. x = 2, y = 3
B. x = 3, y = 2
C. x = 4, y = 1
D. x = 1, y = 4
Question 13
A farmer produces wheat on a 100-hectare farm. The production function is given by Q = 1000x^0.5, where Q is the quantity of wheat produced and x is the amount of fertilizer used. If the farmer uses 50 units of fertilizer, how much wheat will be produced?
A. 500
B. 750
C. 1000
D. 1250
Question 14
A consumer has the following utility function: U = 2x + 3y. The prices of x and y are ₦10 and ₦20, respectively. If the consumer's income is ₦100, what is the optimal bundle of x and y?
A. x = 5, y = 2
B. x = 10, y = 5
C. x = 15, y = 3
D. x = 20, y = 4
Question 15
A firm's production function is given by the equation Q = 2L^0.5, where Q is the quantity produced and L is the labor input. If the firm's labor input is 16, what is the value of the quantity produced?
A. 8
B. 16
C. 32
D. 64

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