POST UTME FUTO 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A monopolist faces a demand curve given by Q = 100 - 2P. The firm's marginal \cost (MC) is ₦20 per unit. If the firm is currently producing 50 units, what is the optimal price to charge?
A. ₦40
B. ₦50
C. ₦60
D. ₦70
Question 2
A government imposes a tax of ₦50 per unit on a good. If the supply curve of the good is represented by the equation \( p = 2q + 50 \), what is the new supply curve after the tax is imposed?
A. p = 2q + 100
B. p = 2q + 50
C. p = 2q - 50
D. p = 2q - 100
Question 3
A firm's demand curve is represented by the equation \( p = 100 - 2q \), where (p) is the price and (q) is the quantity demanded. If the firm's marginal revenue (MR) is ₦200, what is the firm's price elasticity of demand?
A. 0.5
B. 1.0
C. 2.0
D. 3.0
Question 4
A firm's total revenue (TR) is given by TR = 100Q - 2Q^2. If the firm's marginal \cost (MC) is given by MC = 10 + 2Q, what is the firm's optimal output?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 5
A consumer's indifference curve is represented by the equation \( u = 2x + 3y \), where (u) is the level of satisfaction and (x) and (y) are the quantities of two goods. If the consumer's income is ₦1,000 and the prices of the two goods are ₦200 and ₦300 respectively, what is the consumer's optimal bundle of goods?
A. (2, 3)
B. (4, 2)
C. (6, 1)
D. (8, 0)
Question 6
In a perfectly competitive market, what is the relationship between the marginal revenue (MR) and the marginal \cost (MC) of a firm?
A. MR > MC
B. MR = MC
C. MR < MC
D. MR = 0
Question 7
A firm's \cost function is given by the equation C(x) = 100 + 2x + 0.5x^2. What is the marginal \cost (MC) of the firm?
A. 2 + x
B. 3 + 0.5x
C. 4 + x
D. 5 + 0.5x
Question 8
A country's GDP is given by GDP = C + I + G + \( X - M \). If the country's consumption (C) is ₦500 billion, investment (I) is ₦200 billion, government sp\ending (G) is ₦300 billion, exports (X) are ₦400 billion, and imports (M) are ₦200 billion, what is the country's GDP?
A. ₦1.5 trillion
B. ₦1.8 trillion
C. ₦2.1 trillion
D. ₦2.4 trillion
Question 9
A firm's production function is given by \( Q = 2L^2 + 3K \), where ( L ) is labor and ( K ) is capital. If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, and the firm's budget constraint is ₦10,000, what is the optimal combination of labor and capital that the firm should employ?
A. \( L = 10, K = 20 \)
B. \( L = 20, K = 10 \)
C. \( L = 15, K = 15 \)
D. \( L = 25, K = 5 \)
Question 10
A consumer is faced with the following utility function: U(x,y) = 2x + 3y. If the prices of x and y are ₦5 and ₦3 respectively, and the consumer has a budget of ₦100, what is the optimal combination of x and y?
A. x = 10, y = 20
B. x = 15, y = 15
C. x = 20, y = 10
D. x = 25, y = 5
Question 11
A firm is considering investing in a new project with a net present value (NPV) of ₦500,000. If the firm's \cost of capital is 10%, what is the internal rate of return (IRR) of the project?
A. 10%
B. 12%
C. 15%
D. 18%
Question 12
A country's GDP is ₦1,500 billion and its GNP is ₦1,600 billion. What is the country's net factor income from abroad?
A. ₦100 billion
B. ₦200 billion
C. ₦300 billion
D. ₦400 billion
Question 13
A firm's total revenue (TR) is given by the equation TR = 100x - 2x^2, where x is the number of units sold. What is the marginal revenue (MR) of the firm?
A. 98
B. 100
C. 102
D. 104
Question 14
Consider a country that imports 80% of its coffee and exports 70% of its coffee beans. If the country's GDP is ₦10 trillion and the price of coffee is ₦500 per ki\logram, what is the opportunity \cost of importing coffee beans?
A. ₦1.5 trillion
B. ₦2 trillion
C. ₦3 trillion
D. ₦4 trillion
Question 15
A central bank uses the money multiplier formula to calculate the money supply (M). If the money multiplier is 10, the reserve requirement is 0.2, and the excess reserves are ₦100 million, what is the money supply?
A. ₦1 billion
B. ₦1.2 billion
C. ₦1.5 billion
D. ₦2 billion

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