POST UTME FUTA 2025 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A farmer in Nigeria produces maize and sorghum. The production function for maize is Qm = 100L^0.5K^0.5, where L is labor and K is capital. The production function for sorghum is Qs = 50L^0.2K^0.8. If the farmer has 100 units of labor and 200 units of capital, determine the optimal allocation of labor and capital between maize and sorghum.
A. L = 50, K = 100 for maize; L = 50, K = 150 for sorghum
B. L = 50, K = 100 for maize; L = 50, K = 100 for sorghum
C. L = 50, K = 100 for maize; L = 50, K = 50 for sorghum
D. L = 50, K = 100 for maize; L = 100, K = 50 for sorghum
Question 2
A country's national income is given by Y = C + I + G. If the country's consumption is ₦500 billion, investment is ₦200 billion, and government sp\ending is ₦300 billion, what is the country's national income?
A. ₦1 trillion
B. ₦1.1 trillion
C. ₦1.2 trillion
D. ₦1.3 trillion
Question 3
A consumer has a utility function U(x,y) = 2x + 3y. If the consumer's income is ₦1,000 and the prices of x and y are ₦50 and ₦75 respectively, what is the consumer's optimal bundle?
A. (10,5)
B. (15,3)
C. (20,2)
D. (25,1)
Question 4
A country's GDP at factor \cost is ₦1,000 billion and its net indirect tax is ₦50 billion. What is its GDP at market price?
A. ₦1,050 billion
B. ₦1,000 billion
C. ₦950 billion
D. ₦900 billion
Question 5
A firm's total revenue (TR) is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm sells 20 units, what is its total revenue?
A. ₦1,400
B. ₦1,600
C. ₦1,800
D. ₦2,000
Question 6
A country's economic growth is often measured by its GDP. However, GDP has some limitations. What is one of the main criticisms of GDP as a measure of economic growth?
A. It does not account for income inequality.
B. It does not account for the environmental impact of economic activity.
C. It does not account for the quality of goods and services produced.
D. It does not account for the distribution of income.
Question 7
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input prices are w = ₦100 and r = ₦200, and the current output price is p = ₦500, what is the firm's optimal input combination (L, K) that maximizes its profit?
A. L = 100, K = 100
B. L = 200, K = 50
C. L = 50, K = 200
D. L = 100, K = 200
Question 8
A firm's marginal revenue (MR) is given by the equation MR = 100 - 4x, where x is the number of units sold. If the firm sells 10 units, what is its marginal revenue?
A. ₦90
B. ₦80
C. ₦70
D. ₦60
Question 9
A firm's production function is given by Q = 2L + 3K. If the firm's output is 100 units and the wage rate is ₦50 per hour, what is the firm's optimal level of capital?
A. 10
B. 20
C. 30
D. 40
Question 10
A consumer's utility function is given by U = 2x + 3y. If the prices of x and y are ₦5 and ₦10 respectively, and if the consumer's budget constraint is 5x + 10y = ₦50, find the optimal values of x and y that maximize the consumer's utility.
A. x = 5, y = 2
B. x = 2, y = 5
C. x = 10, y = 1
D. x = 1, y = 10
Question 11
A firm is a monopoly and its demand function is given by Q = 100 - 2P. If the firm's marginal \cost is MC = 10, what is the firm's optimal price?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 12
Consider a country with a GDP of ₦10 trillion and a population of 200 million. If the average GDP per capita is ₦50,000, what is the total consumption exp\enditure of the country?
A. ₦8 trillion
B. ₦10 trillion
C. ₦12 trillion
D. ₦15 trillion
Question 13
A country's government is considering a tax on a particular good. If the tax is $5 per unit, and the demand curve for the good is given by Q = 100 - 2P, where P is the price, what is the new equilibrium price?
A. $5
B. $10
C. $15
D. $20
Question 14
A country's GDP is ₦10 trillion, its net factor income from abroad is ₦500 billion, and its depreciation is ₦200 billion. What is its GNP?
A. ₦10.5 trillion
B. ₦10.8 trillion
C. ₦11 trillion
D. ₦11.2 trillion
Question 15
The government of Nigeria has introduced a new policy aimed at increa\sing the production of rice. The policy includes a subsidy of ₦5 per ki\logram of rice produced. If the \cost of production is ₦10 per ki\logram of rice, what is the new \cost of production?
A. ₦5 per ki\logram
B. ₦10 per ki\logram
C. ₦15 per ki\logram
D. ₦20 per ki\logram

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: