POST UTME FUTO 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A central bank increases the reserve requirement for commercial banks. What is the likely effect on the money supply?
A. Increase in money supply
B. Decrease in money supply
C. No change in money supply
D. Uncertainty in money supply
Question 2
A firm's \cost function is given by C(q) = 100 + 2q. If the firm sells 20 units, what is its total \cost?
A. 200
B. 220
C. 240
D. 260
Question 3
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor, and K is capital. If the firm's current labor and capital inputs are 16 and 9 respectively, what is the marginal product of labor?
A. 1/2
B. 1/4
C. 1/8
D. 1/16
Question 4
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 10x + 5y = 50, what is the consumer's optimal bundle of goods?
A. x = 2, y = 4
B. x = 4, y = 2
C. x = 5, y = 3
D. x = 3, y = 5
Question 5
A consumer's indifference curve is given by the equation u(x, y) = 2x + 3y. If the consumer's income is ₦12 and the price of x is ₦2, find the consumer's optimal bundle of x and y.
A. x = 2, y = 2
B. x = 3, y = 1
C. x = 1, y = 3
D. x = 4, y = 0
Question 6
A firm's average total \cost curve intersects its marginal \cost curve at point E, where MC = ATC. If the firm is currently producing at point E, and the price of the good is P = 10, what is the firm's economic profit?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 7
A consumer's utility function is given by U(x,y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is given by 2x + 3y = ₦100, what is the optimal combination of x and y?
A. x = 10, y = 10
B. x = 15, y = 5
C. x = 20, y = 0
D. x = 0, y = 20
Question 8
A government imposes a tax on a good. What is the likely effect on the supply curve?
A. Shift to the left
B. Shift to the right
C. No change
D. Uncertainty
Question 9
A country's GDP is given by the formula GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's GDP is 100, consumption is 30, investment is 20, government sp\ending is 10, exports are 20, and imports are 10, what is the value of X?
A. 30
B. 40
C. 50
D. 60
Question 10
A consumer's budget constraint is given by the equation 2x + 3y = 12. If the consumer's income is ₦12 and the price of x is ₦2, find the consumer's optimal bundle of x and y.
A. x = 2, y = 2
B. x = 3, y = 1
C. x = 1, y = 3
D. x = 4, y = 0
Question 11
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor, and K is capital. If the firm's current labor and capital inputs are 16 and 9 respectively, what is the marginal product of capital?
A. 1/2
B. 1/4
C. 1/8
D. 1/16
Question 12
A monopolist faces a demand curve given by P = 100 - 2q. If the firm's marginal \cost is 10, what is the optimal quantity to produce?
A. 20
B. 30
C. 40
D. 50
Question 13
A country's balance of payments account is in equilibrium when the current account is equal to the capital account. If the current account is -₦100 billion and the capital account is ₦150 billion, what is the net capital outflow?
A. ₦250 billion
B. ₦200 billion
C. ₦150 billion
D. ₦100 billion
Question 14
A country's GDP is given by the equation: 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 ₦300 billion, what is the GDP?
A. ₦1,500 billion
B. ₦1,600 billion
C. ₦1,700 billion
D. ₦1,800 billion
Question 15
A firm's demand curve for a particular input is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price of the input. If the firm's current price is 20, what is the quantity demanded?
A. 40
B. 60
C. 80
D. 100

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