POST UTME FUTO 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's inflation rate is 5% per annum. If the current price level is ₦100, find the price level after 2 years.
A. ₦105
B. ₦110
C. ₦115
D. ₦120
Question 2
A country's GDP at market price is ₦100 billion. The country's net indirect tax is ₦10 billion. What is the country's GDP at factor \cost?
A. ₦90 billion
B. ₦95 billion
C. ₦100 billion
D. ₦105 billion
Question 3
A consumer has an income of ₦1000 and faces a price of ₦10 for a good. The 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 given by 10X + 20Y = 1000, what is the consumer's optimal bundle?
A. X = 20, Y = 10
B. X = 30, Y = 15
C. X = 40, Y = 20
D. X = 50, Y = 25
Question 4
The Marshall-Lerner condition states that a country will experience an improvement in its balance of payments if the sum of the elasticities of demand for imports and exports exceeds 1. What is the minimum value of the sum of the elasticities of demand for imports and exports for a country to experience an improvement in its balance of payments?
A. 1
B. 0.5
C. 2
D. 3
Question 5
Consider a country with a balance of payments account that includes the following transactions: Exports = 100, Imports = 80, Foreign Aid = 20, and Foreign Investment = 30. What is the country's balance of payments surplus?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 6
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, what is the price at which the quantity demanded is 80?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 7
A firm's production function is given by Q = 2L + 3K. The firm's \cost function is given by C = 10L + 20K. Find the firm's profit-maximizing values of L and K.
A. L = 5, K = 10
B. L = 10, K = 5
C. L = 15, K = 20
D. L = 20, K = 15
Question 8
A farmer in Nigeria produces maize and soybeans. The production of maize is given by the equation Qm = 1000 + 2Pm, where Qm is the quantity of maize produced and Pm is the price of maize. The production of soybeans is given by the equation Qs = 500 + 3Ps, where Qs is the quantity of soybeans produced and Ps is the price of soybeans. If the price of maize is ₦20 and the price of soybeans is ₦30, what is the total production of the farmer?
A. 2000
B. 2500
C. 3000
D. 3500
Question 9
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, what is the price at which the quantity demanded is 60?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 10
A consumer has an income of ₦1000 and faces a price of ₦10 for a good. The 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 given by 10X + 20Y = 1000, what is the consumer's optimal bundle?
A. X = 20, Y = 10
B. X = 30, Y = 15
C. X = 40, Y = 20
D. X = 50, Y = 25
Question 11
A government imposes a tax on a product, which shifts the supply curve to the left. If the demand curve is inelastic and the supply curve is elastic, what will happen to the price and quantity of the product?
A. Price increases, quantity decreases
B. Price decreases, quantity increases
C. Price increases, quantity increases
D. Price decreases, quantity decreases
Question 12
A monopolist faces a demand curve given by the equation Qd = 100 - 2P and a marginal revenue curve given by the equation MR = 200 - 4P. What is the price at which the monopolist will maximize profits?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 13
A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production functions are given by X = 2L + 3K and Y = 4L + 2K. If the firm has 10 units of labor and 8 units of capital, find the level of production of good X.
A. 44
B. 66
C. 88
D. 100
Question 14
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's income is 100 and the prices of x and y are 5 and 10 respectively, what is the consumer's optimal consumption bundle?
A. (x, y) = (20, 10)
B. (x, y) = (15, 15)
C. (x, y) = (10, 20)
D. (x, y) = (25, 5)
Question 15
Consider a firm operating in a perfectly competitive market with a production function Q = 2L^0.5K^0.5. If the firm's current input prices are w = 10 and r = 20, and the current output price is p = 50, what is the firm's optimal input combination?
A. (L, K) = (100, 100)
B. (L, K) = (50, 50)
C. (L, K) = (200, 200)
D. (L, K) = (150, 150)

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