POST UTME FUTA 2021 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's indifference curve is flatter than their budget constraint. What is the effect on their optimal consumption bundle?
A. The consumer consumes more of good X and less of good Y
B. The consumer consumes more of good Y and less of good X
C. The consumer consumes the same amount of both goods
D. The consumer consumes less of both goods
Question 2
A government imposes a tax on a firm's profits. The firm's supply curve shifts to the left, and the government collects more revenue. What is the effect on the firm's profit-maximizing output?
A. The firm's profit-maximizing output increases
B. The firm's profit-maximizing output decreases
C. The firm's profit-maximizing output remains unchanged
D. The firm's profit-maximizing output increases, but at a lower price
Question 3
A government imposes a tax on a firm's output. If the firm's supply curve shifts to the left, what happens to the firm's equilibrium price and quantity?
A. Price increases, quantity decreases
B. Price decreases, quantity increases
C. Price increases, quantity increases
D. Price decreases, quantity decreases
Question 4
A firm is considering two production methods to produce a product. Method A requires an initial investment of ₦100,000 and produces 100 units of the product per year. Method B requires an initial investment of ₦150,000 and produces 120 units of the product per year. Which method should the firm choose?
A. Method A
B. Method B
C. Both methods
D. Neither method
Question 5
The government of Nigeria has introduced a new tax policy aimed at increa\sing revenue from the agricultural sector. The policy requires farmers to pay a 10% tax on their annual income. If a farmer's annual income is ₦120,000, what is the amount of tax the farmer must pay?
A. ₦12,000
B. ₦10,000
C. ₦8,000
D. ₦6,000
Question 6
Consider a firm operating in a perfectly competitive market with cons\tant returns to scale. If the firm's average \cost curve intersects its marginal \cost curve at point E, where the price is P = 10 and the quantity supplied is Q = 20, what is the firm's economic profit?
A. ₦200
B. ₦0
C. ₦100
D. ₦500
Question 7
A firm is producing a good u\sing a production function given by Q = 2L^0.5K^0.5, where Q is the quantity of the good produced, L is the amount of labor used, and K is the amount of capital used. If the firm uses 100 units of labor and 200 units of capital, what is the marginal product of labor?
A. 0.5
B. 1
C. 2
D. 4
Question 8
A firm's demand curve for a product is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's total revenue (TR) is given by TR = P * Q, find the price at which the firm's marginal revenue (MR) is equal to the price elasticity of demand (PED).
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 9
A firm's production function is given by Q = 2L + 3K. If the firm produces 100 units and uses 50 units of labor, what is the value of K?
A. 10
B. 20
C. 30
D. 40
Question 10
A government imposes a tax on a firm's output. The firm's supply curve shifts to the right, and the government collects more revenue. What is the effect on the firm's profit-maximizing output?
A. The firm's profit-maximizing output increases
B. The firm's profit-maximizing output decreases
C. The firm's profit-maximizing output remains unchanged
D. The firm's profit-maximizing output decreases, but at a higher price
Question 11
A country's GDP is ₦100 billion, its imports are ₦20 billion, and its exports are ₦15 billion. What is its balance of trade?
A. ₦5 billion surplus
B. ₦5 billion deficit
C. ₦10 billion surplus
D. ₦10 billion deficit
Question 12
A firm's average \cost curve is given by AC = 10 + 2Q + 0.1Q^2. If the firm produces 100 units, what is its average \cost?
A. ₦120
B. ₦130
C. ₦140
D. ₦150
Question 13
The government of Nigeria has introduced a new policy aimed at increa\sing the production of agricultural goods. The policy includes the following measures: (i) providing subsidies to farmers, (ii) investing in irrigation systems, and (iii) increa\sing the availability of credit to farmers. Which of the following is a potential consequence of the policy?
A. Increased agricultural production
B. Reduced poverty and inequality
C. Increased unemployment
D. Increased inflation
Question 14
A consumer has a budget of ₦100 and faces a price of ₦20 for a good. The consumer's indifference curve is given by U = 2X + 3Y. What is the consumer's optimal consumption bundle?
A. X = 2, Y = 4
B. X = 3, Y = 3
C. X = 4, Y = 2
D. X = 5, Y = 1
Question 15
A country's balance of payments is given by the following equation:
A. ₦1000
B. ₦2000
C. ₦3000
D. ₦4000

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