POST UTME FUTA 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm in Nigeria produces a product u\sing two inputs, labor and capital. The production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the amount of labor used, and K is the amount of capital used. If the firm uses 10 units of labor and 20 units of capital, find the quantity produced.
A. Q = 100
B. Q = 120
C. Q = 140
D. Q = 160
Question 2
A government is considering implementing a policy to reduce poverty in a developing country. The policy involves providing a subsidy to farmers to increase their production of staple crops. U\sing the concept of \cost-benefit analysis, explain why the government might choose to implement this policy.
A. The policy will increase the income of farmers and reduce poverty.
B. The policy will decrease the income of farmers and increase poverty.
C. The policy will have no effect on the income of farmers and poverty.
D. The policy will increase the income of farmers but increase poverty.
Question 3
A country is experiencing a balance of payments deficit due to a trade deficit. What is the likely effect on the exchange rate?
A. Appreciation of the exchange rate
B. Depreciation of the exchange rate
C. No effect on the exchange rate
D. Increase in the foreign exchange reserves
Question 4
Consider a firm operating in a perfectly competitive market with a given production function Q = 2L^0.5K^0.5. If the price of the good is $10 and the wage rate is $5 per unit of labor, calculate the optimal level of labor employment u\sing the first-order condition for profit maximization.
A. 4
B. 6
C. 8
D. 10
Question 5
A firm is considering investing in a new project with the following cash flows: Year 1: -₦100, Year 2: ₦150, Year 3: ₦200. What is the net present value (NPV) of the project if the discount rate is 10%?
A. ₦50
B. ₦100
C. ₦150
D. ₦200
Question 6
The central bank of Nigeria uses monetary policy to control inflation. The monetary policy function is given by M = 100 - 2P, where M is the money supply and P is the price level. If the price level is 10, find the money supply.
A. ₦90
B. ₦80
C. ₦70
D. ₦60
Question 7
A perfectly competitive market has a demand curve given by Qd = 100 - 2P and a supply curve given by Qs = 2P. If the market is initially in equilibrium at a price of ₦20, what is the change in producer surplus if the government imposes a tax of ₦5 per unit on the firm?
A. ₦1000
B. ₦2000
C. ₦3000
D. ₦4000
Question 8
A consumer has the following utility function: U(x,y) = 2x + 3y. If the prices of x and y are ₦5 and ₦3 respectively, and the consumer's income is ₦100, what is the optimal bundle of x and y?
A. (10,20)
B. (15,15)
C. (20,10)
D. (25,5)
Question 9
A firm is producing a product with the following production function: Q = 2L + 3K, where L is labor and K is capital. The firm's total \cost function is given by TC = 10L + 20K. U\sing the concept of \cost minimization, explain why the firm might choose to increase its use of labor.
A. The firm wants to minimize its total \cost.
B. The firm wants to maximize its total \cost.
C. The firm wants to increase its use of capital.
D. The firm wants to decrease its use of labor.
Question 10
A farmer in Nigeria produces two crops, maize and yam. The production functions for the two crops are given by Qm = 100 + 2L + 3K and Qy = 150 + 4L + 2K, where Qm is the quantity of maize produced, Qy is the quantity of yam produced, L is the amount of labor used, and K is the amount of capital used. If the farmer uses 20 units of labor and 15 units of capital, find the quantities of maize and yam produced.
A. Qm = 120, Qy = 180
B. Qm = 140, Qy = 200
C. Qm = 160, Qy = 220
D. Qm = 180, Qy = 240
Question 11
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's income is ₦100 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 3, y = 15
Question 12
A firm is producing a good with a production function Q = 2L^0.5K^0.5, where L is labor and K is capital. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, find the optimal level of labor and capital that maximizes profit.
A. ₦1000, ₦500
B. ₦500, ₦1000
C. ₦2000, ₦1000
D. ₦1000, ₦2000
Question 13
The government of Nigeria imposes a tax on the income of its citizens. The tax function is given by T = 0.2Y, where T is the tax paid and Y is the income. If a citizen has an income of ₦100,000, find the tax paid.
A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000
Question 14
The Marshall-Lerner condition states that a country's balance of payments will improve if the sum of the elasticities of demand for imports and exports exceeds 1. Which of the following scenarios would lead to an improvement in the balance of payments?
A. An increase in the price of imports
B. A decrease in the price of exports
C. An increase in the price of exports
D. A decrease in the price of imports
Question 15
A government is considering implementing a policy to reduce carbon emissions. The policy involves a tax on carbon-intensive industries. The tax revenue generated will be used to fund renewable energy projects. U\sing the concept of opportunity \cost, explain why the government might choose to implement this policy.
A. The government wants to reduce its reliance on fossil fuels and transition to renewable energy sources.
B. The tax revenue generated will be used to fund other government projects.
C. The policy will create jobs in the renewable energy sector.
D. The policy will increase the \cost of production for carbon-intensive industries.

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