POST UTME FUTA 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm's current labor and capital inputs are 4 and 9 units respectively, what is the marginal product of labor (MPL) when H = 9?
A. 1/4
B. 1/2
C. 1
D. 2
Question 2
A government imposes a tax on imports to reduce the trade deficit. What is the likely effect of this tax on the trade deficit?
A. The trade deficit will increase.
B. The trade deficit will decrease.
C. The trade deficit will remain the same.
D. The trade deficit will become negative.
Question 3
A consumer's indifference curve is given by the equation ( U(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, find the optimal bundle of x and y.
A. x = 40, y = 20
B. x = 30, y = 30
C. x = 20, y = 40
D. x = 50, y = 10
Question 4
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm wants to increase output by 20% while holding labor cons\tant at 16 units, how much capital must it increase?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 5
A firm's revenue function is given by ( R(x) = 2x^2 + 10x + 5 ). If the firm produces 20 units of output, find the total revenue and the marginal revenue.
A. Total revenue = ₦150, Marginal revenue = ₦15
B. Total revenue = ₦200, Marginal revenue = ₦20
C. Total revenue = ₦250, Marginal revenue = ₦25
D. Total revenue = ₦300, Marginal revenue = ₦30
Question 6
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm's current labor and capital inputs are 4 and 9 units respectively, what is the marginal product of capital (MPK) when L = 4?
A. 1/4
B. 1/2
C. 1
D. 2
Question 7
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital are fixed at 100 units each, what is the marginal product of labor?
A. 50
B. 100
C. 200
D. 500
Question 8
A consumer's budget constraint is given by 2x + 3y = 100, where x and y are the quantities of two goods. If the consumer's utility function is given by U = 2x + 3y, how much of good x should the consumer buy?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 9
A firm's production function is 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 wants to increase its output by 20% and the labor increases by 10%, what is the percentage change in capital required?
A. 15%
B. 20%
C. 25%
D. 30%
Question 10
A firm's \cost function is given by the equation C = 3x^2 + 2x + 1, where x is the number of units produced. If the firm produces 5 units, what is its \cost?
A. 41
B. 43
C. 45
D. 47
Question 11
A country's balance of payments is given by the following table:\n| Category | Exports | Imports |\n| --- | --- | --- |\n| Goods | ₦1000 | ₦800 |\n| Services | ₦500 | ₦600 |\n| Transfer | ₦200 | ₦100 |\n| Total | ₦1700 | ₦1500 |\nIf the country's exchange rate is ₦5 per dollar, find the balance of payments.
A. ₦200 surplus
B. ₦100 deficit
C. ₦50 surplus
D. ₦50 deficit
Question 12
A firm's revenue is given by the equation R = 2x^2 + 5x + 1, where x is the number of units sold. If the firm sells 4 units, what is its revenue?
A. 21
B. 25
C. 29
D. 31
Question 13
A firm's \cost function is given by ( C(x) = 2x^2 + 10x + 5 ). If the firm produces 20 units of output, find the total \cost and the marginal \cost.
A. Total \cost = ₦150, Marginal \cost = ₦15
B. Total \cost = ₦200, Marginal \cost = ₦20
C. Total \cost = ₦250, Marginal \cost = ₦25
D. Total \cost = ₦300, Marginal \cost = ₦30
Question 14
A country's GNP is calculated as the sum of its GDP plus its net income from abroad. What is the difference between GNP and GDP?
A. GNP includes income earned by foreigners, while GDP does not.
B. GNP excludes income earned by foreigners, while GDP includes it.
C. GNP includes depreciation of capital assets, while GDP does not.
D. GNP excludes intermediate goods and services, while GDP includes them.
Question 15
A firm's revenue function is given by R(Q) = 100Q - 2Q^2. The firm's \cost function is given by C(Q) = 20Q + 10. What is the firm's profit function?
A. 80Q - 2Q^2
B. 100Q - 2Q^2
C. 20Q + 10
D. 80Q + 10

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