POST UTME FUTO 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's GDP is given by GDP = C + I + G + \( X - M \). If the country's consumption function is given by C = 100 + 0.8Y, the country's investment function is given by I = 50 + 0.2Y, the country's government sp\ending function is given by G = 200, and the country's trade balance function is given by \( X - M \) = 100, what is the country's GDP?
A. ₦1000
B. ₦1200
C. ₦1500
D. ₦1800
Question 2
The government of Nigeria has introduced a new tax on luxury goods. The tax is ₦500 per unit of the good. If the price of the good is ₦1000 per unit, what is the total tax revenue collected by the government?
A. ₦250,000
B. ₦500,000
C. ₦750,000
D. ₦1,000,000
Question 3
A country's balance of payments is given by the equation BOP = X - M, where X is the value of exports and M is the value of imports. If the value of exports is 100 and the value of imports is 80, what is the balance of payments?
A. 10
B. 20
C. 30
D. 40
Question 4
A monopolist faces a demand curve given by Q = 100 - 2P. The firm's marginal revenue (MR) is given by MR = 200 - 2Q. If the firm's marginal \cost (MC) is given by MC = 20 + 2Q, find the price at which the firm's marginal revenue equals its marginal \cost.
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 5
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 percentage change in quantity demanded when the price increases by 10%?
A. 5%
B. 10%
C. 15%
D. 20%
Question 6
The government of Nigeria has introduced a new policy to increase agricultural production. The policy includes subsidies for fertilizers and seeds, as well as training for farmers. However, the policy also includes a tax on agricultural products. Which of the following is a potential consequence of this policy?
A. An increase in agricultural production
B. A decrease in agricultural production
C. An increase in the price of agricultural products
D. A decrease in the price of agricultural products
Question 7
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12, and the price of x is ₦2 and the price of y is ₦3, what is the consumer's optimal bundle?
A. x = 3, y = 2
B. x = 2, y = 4
C. x = 4, y = 1
D. x = 1, y = 3
Question 8
The government of Nigeria has introduced a new policy to increase industrial production. The policy includes subsidies for raw materials and training for workers. However, the policy also includes a tax on industrial products. Which of the following is a potential consequence of this policy?
A. An increase in industrial production
B. A decrease in industrial production
C. An increase in the price of industrial products
D. A decrease in the price of industrial products
Question 9
The government of Nigeria has introduced a new tax on luxury goods. The tax is ₦500 per unit of the good. If the price of the good is ₦1000 per unit, what is the total tax revenue collected by the government?
A. ₦250,000
B. ₦500,000
C. ₦750,000
D. ₦1,000,000
Question 10
A monopolistically competitive firm faces a demand curve with the following equation: Q = 100 - 2P. If the firm's marginal revenue (MR) is given by MR = 200 - 2Q, what is the firm's optimal price?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 11
A firm's \cost function is given by C(L,K) = 2L + 3K. If the firm's output is 100 units and the wage rate is ₦10 per hour, what is the minimum amount of capital the firm should employ?
A. ₦100
B. ₦500
C. ₦1000
D. ₦5000
Question 12
A firm's demand curve is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal revenue (MR) is given by MR = 200 - 2Q, find the price at which the firm's marginal revenue equals its marginal \cost (MC).
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 13
A country's GDP is given by GDP = C + I + G + \( X - M \). If the country's consumption function is given by C = 100 + 0.8Y, the country's investment function is given by I = 50 + 0.2Y, the country's government sp\ending function is given by G = 200, and the country's trade balance function is given by \( X - M \) = 100, what is the country's GDP?
A. ₦1000
B. ₦1200
C. ₦1500
D. ₦1800
Question 14
The supply of a product is given by the equation Qs = 50 + 2P, where Qs is the quantity supplied and P is the price. If the price elasticity of supply is 0.8, what is the percentage change in quantity supplied when the price increases by 15%?
A. 12%
B. 15%
C. 18%
D. 20%
Question 15
A consumer's indifference curve is represented by the equation u(x,y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle?
A. (100, 100)
B. (200, 50)
C. (50, 200)
D. (0, 0)

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