POST UTME FUTA 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The government budget constraint is given by the equation: B = T + I + G. Explain this equation u\sing a diagram.
A. The government budget constraint is the total amount of money the government has available to sp\end.
B. The government budget constraint is the total amount of money the government has available to tax.
C. The government budget constraint is the total amount of money the government has available to borrow.
D. The government budget constraint is the total amount of money the government has available to sp\end, tax, and borrow.
Question 2
A firm's \cost function is given by C = 100 + 2Q + 0.01Q^2, where C is the total \cost and Q is the quantity produced. If the firm produces 100 units, what is the total \cost?
A. 1200
B. 1500
C. 1800
D. 2000
Question 3
A government imposes a tax on a firm's profits. The tax rate is 20% of the profit. If the firm's profit is ₦1,000,000, what is the amount of tax paid?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦400,000
Question 4
A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production functions are given by Qx = 2L + 3K and Qy = 4L + 2K. If the firm wants to produce 10 units of X and 8 units of Y, and the prices of labor and capital are $5 and $10 respectively, what is the minimum \cost of production?
A. $250
B. $300
C. $350
D. $400
Question 5
A country's inflation rate is given by the following equation: inflation rate = \( CPI_t - CPI_\( t-1 \ \))/CPI_\( t-1 \) * 100, where CPI_t is the current CPI and CPI_\( t-1 \) is the previous CPI. If the current CPI is 120 and the previous CPI is 100, what is the inflation rate?
A. 20
B. 30
C. 40
D. 50
Question 6
A consumer has a budget of ₦10,000 and is faced with the following prices for two goods: Good X \costs ₦5,000 and Good Y \costs ₦3,000. If the consumer's utility function is U = 2x + 3y, where x and y are the quantities of Good X and Good Y respectively, what is the consumer's optimal consumption bundle?
A. x = 2, y = 1
B. x = 1, y = 2
C. x = 3, y = 1
D. x = 1, y = 3
Question 7
A country's inflation rate is 5% per annum, and its nominal interest rate is 10% per annum. What is the real interest rate?
A. 5%
B. 6%
C. 7%
D. 8%
Question 8
The concept of scarcity is closely related to the idea of opportunity \cost. Explain this relationship u\sing a diagram.
A. Scarcity is the fundamental economic problem of having unlimited wants but limited resources.
B. Opportunity \cost is the value of the next best alternative given up when a choice is made.
C. Scarcity and opportunity \cost are unrelated concepts in economics.
D. Scarcity is the result of opportunity \cost.
Question 9
A firm's production function is given by \( Q = 2L^{0.5}K^{0.5} \). If the firm's output is 100 units and the price of labor is ₦10 per unit, find the firm's optimal level of capital.
A. 100 units of capital
B. 150 units of capital
C. 200 units of capital
D. 250 units of capital
Question 10
A monopolistically competitive firm faces a downward-sloping demand curve. If the firm increases its price, what will happen to its total revenue?
A. Total revenue will increase
B. Total revenue will decrease
C. Total revenue will remain the same
D. Total revenue will increase at first, then decrease
Question 11
A consumer has an indifference curve given by the equation U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is given by the equation 2x + 3y = 12, what is the optimal combination of x and y that maximizes utility?
A. x = 2, y = 4
B. x = 3, y = 3
C. x = 4, y = 2
D. x = 5, y = 1
Question 12
A consumer has a budget of ₦15,000 and is faced with the following prices for two goods: Good X \costs ₦7,000 and Good Y \costs ₦4,000. If the consumer's utility function is U = 3x + 2y, where x and y are the quantities of Good X and Good Y respectively, what is the consumer's optimal consumption bundle?
A. x = 3, y = 1
B. x = 1, y = 3
C. x = 2, y = 2
D. x = 1, y = 1
Question 13
The money market equilibrium is given by the equation MS = 100 + 0.5Y, where MS is the money supply and Y is the income. If the income is $1000, what is the money supply?
A. $150
B. $200
C. $250
D. $300
Question 14
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. 5%
D. 15%
Question 15
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 10%
B. 12%
C. 15%
D. 18%

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