POST UTME CRAWFORD UNIVERSITY 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
Assume that the production function for a firm is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the number of labor units, and K is the number of capital units. If the firm wants to produce 16 units of output, and it has 4 labor units available, how many capital units should it hire?
A. 2
B. 4
C. 8
D. 16
Question 2
A firm is producing at a point on its production function where the marginal product of labor is equal to the wage rate. If the firm increases the number of workers by one, what will happen to the total product?
A. Total product will increase.
B. Total product will decrease.
C. Total product will remain the same.
D. Total product will increase at a decrea\sing rate.
Question 3
A firm is operating under a monopoly. If its \cost function is given by C(q) = 2q^2 + 10q + 50 and its inverse demand function is given by p = 100 - 2q, what is the firm's profit-maximizing quantity of output?
A. 10 units
B. 15 units
C. 20 units
D. 25 units
Question 4
A country is experiencing a recession, and the government decides to implement a fiscal policy to stimulate economic growth. Which of the following fiscal policy tools is most likely to be used?
A. Increase government sp\ending on infrastructure projects.
B. Reduce taxes to increase disposable income.
C. Increase interest rates to reduce borrowing.
D. Implement a wealth tax to redistribute income.
Question 5
A firm is producing a good with a cons\tant returns to scale production function. If the firm increases the number of workers by 10%, what will happen to the total product?
A. Total product will increase by 10%.
B. Total product will increase by 20%.
C. Total product will increase by 30%.
D. Total product will remain the same.
Question 6
A firm is operating under perfect competition. If the market price of its product falls from ₦100 to ₦80, and its \cost function is given by C(q) = 2q^2 + 10q + 50, what is the new profit-maximizing quantity of output?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 7
A firm's production function is given by the equation Q = 2L^0.5K^0.5, where Q is the quantity produced, L is labor, and K is capital. If the firm's labor and capital are 10 units and 20 units respectively, what is the value of the firm's output?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 8
A country is experiencing a trade deficit. What does this mean?
A. The country is exporting more goods than it is importing
B. The country is importing more goods than it is exporting
C. The country is experiencing economic growth
D. The country is experiencing economic decline
Question 9
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm wants to maximize its revenue, what price should it charge?
A. $20
B. $30
C. $40
D. $50
Question 10
Suppose the government of Nigeria decides to implement a policy of agricultural industrialization. Which of the following would be a likely consequence of this policy?
A. Increased production of agricultural products
B. Decreased production of industrial goods
C. Increased employment in the agricultural sector
D. Decreased inflation rate
Question 11
A country's balance of payments is given by the following equation: BOP = X - M, where X is the value of exports and M is the value of imports. If the country's exports are $100 and its imports are $80, what is its balance of payments?
A. $20
B. $30
C. $40
D. $50
Question 12
A country's production function is given by Q = 2K^0.5L^0.5. If the country's capital stock is 100 units and its labor force is 200 units, what is the country's output?
A. 20 units
B. 40 units
C. 60 units
D. 80 units
Question 13
A firm's demand function is given by Q = 100 - 2P. If the price of the product is 20, what is the quantity demanded?
A. 40
B. 50
C. 60
D. 70
Question 14
A consumer's indifference curve is given by the equation ( u(x,y) = 2x + 3y ). If the consumer's income is ₦1000 and the prices of x and y are ₦2 and ₦3 respectively, find the consumer's optimal bundle of x and y.
A. (100, 150)
B. (200, 100)
C. (150, 200)
D. (250, 50)
Question 15
A firm's production function is given by Q = 10L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the labor is 100 units and the capital is 400 units, what is the output?
A. 100
B. 150
C. 200
D. 250

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