POST UTME FUTO 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's demand function is given by Qd = 100 - 2P. If the price of the good is ₦20, how many units will be demanded?
A. 10
B. 20
C. 30
D. 40
Question 2
The Marshall-Lerner condition states that if the sum of the elasticities of demand for imports and supply of exports is greater than 1, then a devaluation of the currency will lead to an improvement in the balance of payments. What is the implication of this condition for a country with an elasticity of demand for imports of 0.8 and an elasticity of supply of exports of 0.6?
A. The country will experience a deterioration in its balance of payments.
B. The country will experience no change in its balance of payments.
C. The country will experience an improvement in its balance of payments.
D. The country will experience a worsening of its trade deficit.
Question 3
The government imposes a tax of ₦50 per unit on a consumer's good. If the consumer's utility function is given by U = 2X + 3Y, where U is utility, X is quantity of good X and Y is quantity of good Y, and the prices of good X and good Y are ₦100 and ₦200 respectively, find the new utility function and the optimal values of X and Y.
A. U = 2X + 3Y - 50, X = 10, Y = 20
B. U = 2X + 3Y - 100, X = 20, Y = 10
C. U = 2X + 3Y - 150, X = 15, Y = 15
D. U = 2X + 3Y - 200, X = 25, Y = 5
Question 4
A firm is producing a good with the following production function: Q = 2L^0.5K^0.5. If the price of the good is $10 and the price of labor is $5 per unit, and the price of capital is $10 per unit, what is the optimal level of labor and capital for the firm?
A. L = 100, K = 100
B. L = 50, K = 50
C. L = 200, K = 200
D. L = 150, K = 150
Question 5
A country is experiencing a recession and the government wants to stimulate the economy. The government can either increase government sp\ending or cut taxes. Which policy is more effective in stimulating the economy?
A. Increa\sing government sp\ending
B. Cutting taxes
C. Both policies are equally effective
D. Neither policy is effective
Question 6
The government of Nigeria has introduced a new policy to increase the production of rice in the country. The policy involves providing subsidies to rice farmers and increa\sing the import duty on rice. Assuming that the demand for rice is inelastic and the supply of rice is elastic, what will be the effect of the policy on the price of rice?
A. The price of rice will increase
B. The price of rice will decrease
C. The price of rice will remain the same
D. The effect on the price of rice is uncertain
Question 7
A country's GDP is given by the equation Y = C + I + G. If the country's current GDP is ₦100 billion, and the government's current exp\enditure is ₦20 billion, while the country's current investment is ₦30 billion, calculate the country's current consumption.
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 8
The government imposes a tax of ₦50 per unit on a firm's output. If the firm's supply function is given by Q = 2P - 100, find the new supply function and the equilibrium price and quantity.
A. Q = 2P - 150, P = ₦75, Q = 25
B. Q = 2P - 200, P = ₦100, Q = 0
C. Q = 2P - 250, P = ₦125, Q = -25
D. Q = 2P - 300, P = ₦150, Q = -50
Question 9
A country is experiencing a recession and the government is considering implementing a fiscal policy to stimulate the economy. If the government increases government sp\ending by $100 billion and the marginal propensity to consume is 0.8, what is the multiplier effect on aggregate demand?
A. $80 billion
B. $100 billion
C. $120 billion
D. $150 billion
Question 10
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. If the firm produces 20 units, what is the total \cost?
A. ₦150
B. ₦250
C. ₦350
D. ₦450
Question 11
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current production is 16 units and the wage rate is ₦100 per unit of labor, while the rental rate for capital is ₦200 per unit, calculate the opportunity \cost of one additional unit of labor.
A. ₦50
B. ₦100
C. ₦200
D. ₦500
Question 12
A country's balance of payments is given by the following equation: BOP = X - M. If the country's exports (X) are ₦100 billion and imports (M) are ₦80 billion, what is the balance of payments?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 13
A country is experiencing a trade deficit and the government is considering implementing a trade policy to reduce the deficit. If the country imports $100 billion worth of goods and services and exports $80 billion worth of goods and services, what is the trade deficit?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion
Question 14
A consumer's utility function is given by U = 2X + 3Y, where U is utility, X is quantity of good X and Y is quantity of good Y. If the prices of good X and good Y are ₦100 and ₦200 respectively, and the consumer's budget constraint is 100X + 200Y = ₦10000, find the optimal values of X and Y.
A. X = 10, Y = 20
B. X = 20, Y = 10
C. X = 15, Y = 15
D. X = 25, Y = 5
Question 15
A firm is producing a good with a production function of Q = 2L^0.5K^0.5. If the price of the good is $10 and the wage rate is $20 per hour, and the rental rate of capital is $15 per hour, what is the profit-maximizing level of labor and capital?
A. L = 10, K = 10
B. L = 20, K = 20
C. L = 5, K = 5
D. L = 15, K = 15

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: