POST UTME CRAWFORD UNIVERSITY 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm operating in a perfectly competitive market is faced with a downward-sloping demand curve. If the firm's marginal revenue (MR) is greater than its marginal \cost (MC), what will be the effect on the firm's output and price?
A. The firm will increase its output and lower its price.
B. The firm will decrease its output and lower its price.
C. The firm will increase its output and raise its price.
D. The firm will decrease its output and raise its price.
Question 2
A firm's production function is given by Q = 2L^0.5 K^0.5, where L and K are the quantities of labor and capital respectively. If the firm is currently producing 100 units, and the price of labor is ₦10 and the price of capital is ₦20, what is the firm's \cost-minimizing input bundle?
A. (10, 5)
B. (5, 10)
C. (15, 3.33)
D. (3.33, 15)
Question 3
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦100 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 3, y = 15
Question 4
A firm has a production function Q = 2L + 3K, where L is labor and K is capital. If the firm's output is 100 units and the price of output is ₦10, what is the firm's optimal combination of labor and capital?
A. L = 20, K = 30
B. L = 30, K = 20
C. L = 25, K = 25
D. L = 15, K = 35
Question 5
The demand and supply curves for a commodity are given by D = 100 - 2p and S = 50 + p respectively, where p is the price of the commodity. What is the equilibrium price and quantity of the commodity?
A. p = 25, Q = 75
B. p = 50, Q = 50
C. p = 75, Q = 25
D. p = 100, Q = 0
Question 6
A firm faces a demand curve given by Q = 100 - 2P and a supply curve given by Q = 2P - 10. If the firm is currently producing 60 units at a price of ₦20, what is the firm's profit-maximizing output?
A. 40
B. 60
C. 80
D. 100
Question 7
A country's GDP is given by GNP - \( imports - exports \). If the country's GNP is $100 billion, imports are $20 billion, and exports are $15 billion, what is the country's GDP?
A. $95 billion
B. $100 billion
C. $105 billion
D. $110 billion
Question 8
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are $2 and $3 respectively, and the consumer's income is $15, what is the consumer's optimal bundle of goods?
A. x = 3, y = 2
B. x = 2, y = 3
C. x = 1, y = 4
D. x = 4, y = 1
Question 9
A market has a demand function P = 100 - 2Q and a supply function P = 20 + Q. What is the equilibrium price and quantity in this market?
A. P = 60, Q = 20
B. P = 40, Q = 30
C. P = 50, Q = 25
D. P = 70, Q = 15
Question 10
A firm's supply curve is given by Q = 2P - 10, where P is the price of the good. If the firm's fixed \cost is ₦50, and the price of the good is ₦20, what is the firm's total revenue?
A. ₦100
B. ₦150
C. ₦200
D. ₦250
Question 11
A monopolist's marginal revenue (MR) curve is a graphical representation of the rate of change of total revenue with respect to the quantity of output produced. Which of the following is a characteristic of a monopolist's MR curve?
A. It is downward sloping
B. It is upward sloping
C. It is horizontal
D. It is vertical
Question 12
A consumer has a utility function U(x, y) = 3x + 2y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 120, and the prices of the two goods are p_x = 4 and p_y = 2, what is the consumer's optimal bundle of goods?
A. x = 15, y = 10
B. x = 20, y = 5
C. x = 25, y = 0
D. x = 0, y = 20
Question 13
A government's budget is given by R + T = G + I, where R is revenue, T is taxation, G is government exp\enditure, and I is investment. If the government's revenue is $50 billion, taxation is $20 billion, government exp\enditure is $30 billion, and investment is $10 billion, what is the government's budget deficit?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion
Question 14
A country's balance of payments is in equilibrium when the value of its imports equals the value of its exports. However, if the country's imports exceed its exports, it will experience a trade deficit. Which of the following is a consequence of a trade deficit?
A. A decrease in the value of its currency
B. An increase in the value of its currency
C. A decrease in the value of its currency and a decrease in the value of its imports
D. An increase in the value of its currency and an increase in the value of its imports
Question 15
A firm's \cost function is a mathematical representation of the total \cost of producing a given quantity of output. Which of the following is a characteristic of a firm's \cost function?
A. It is upward sloping
B. It is downward sloping
C. It is horizontal
D. It is vertical

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