POST UTME CRAWFORD UNIVERSITY 2020 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's indifference curve is a graphical representation of the various combinations of two goods that the consumer is equally willing to consume. Which of the following statements is NOT true?
A. The indifference curve is a downward-sloping curve
B. The indifference curve is a graphical representation of the consumer's preferences
C. The indifference curve is a straight line
D. The indifference curve is a curved line
Question 2
The central bank of a country has a monetary policy objective of keeping the inflation rate at 2%. If the current inflation rate is 4% and the money supply is increa\sing at a rate of 10% per annum, what should be the target interest rate to achieve the desired inflation rate?
A. 5%
B. 6%
C. 7%
D. 8%
Question 3
A firm's total revenue (TR) is given by the equation TR = 2Q^2 - 10Q + 100. If the firm's marginal revenue (MR) is ₦20, what is the profit-maximizing output level?
A. 5 units
B. 10 units
C. 15 units
D. 20 units
Question 4
A firm's demand function for a particular good is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's revenue function is given by R = PQ, and the firm's \cost function is given by C = 50 + 10Q, what is the firm's profit-maximizing price?
A. 20
B. 30
C. 40
D. 50
Question 5
A consumer's utility function is given by U(x,y) = 2x + 3y. The consumer's budget constraint is given by 2x + 3y = 12. U\sing the concept of indifference curves, determine the consumer's optimal consumption bundle.
A. (x,y) = (2,4)
B. (x,y) = (3,3)
C. (x,y) = (4,2)
D. (x,y) = (6,0)
Question 6
A central bank increases the money supply by 10%. U\sing the concept of the money multiplier, determine the percentage change in the money supply.
A. 10%
B. 20%
C. 30%
D. 40%
Question 7
A firm has a production function given by Q = 100L^0.5K^0.5, where Q is the quantity produced and L and K are the inputs of labor and capital respectively. If the firm has 100 units of labor and 50 units of capital, find the marginal product of labor and the marginal product of capital.
A. MP_L = 5, MP_K = 10
B. MP_L = 10, MP_K = 5
C. MP_L = 7, MP_K = 8
D. MP_L = 8, MP_K = 7
Question 8
A government imposes a tax of ₦10 on a good. The demand curve for the good is given by Q = 100 - 2P. Find the new equilibrium price and quantity.
A. P = 40, Q = 20
B. P = 50, Q = 30
C. P = 60, Q = 40
D. P = 70, Q = 50
Question 9
A monopolist faces a demand curve with the following equation: Q = 100 - 2P. If the firm's marginal \cost (MC) is ₦20, what is the profit-maximizing price?
A. ₦40
B. ₦50
C. ₦60
D. ₦70
Question 10
A firm is considering two different production techno\logies: one that uses a lot of labor and another that uses a lot of capital. The firm's production function is given by Q = 10L^0.5K^0.5, where Q is the quantity produced, L is the amount of labor used, and K is the amount of capital used. If the firm has a budget constraint of 100 units of labor and 50 units of capital, and the wage rate is 10 units of output per unit of labor, and the rental rate of capital is 20 units of output per unit of capital, which techno\logy should the firm choose?
A. The labor-intensive techno\logy
B. The capital-intensive techno\logy
C. Both techno\logies are equally profitable
D. Neither techno\logy is profitable
Question 11
A firm's \cost function is given by C(q) = 2q^2 + 10q + 5. U\sing the concept of marginal \cost, determine the profit-maximizing quantity of output.
A. q = 2
B. q = 5
C. q = 10
D. q = 15
Question 12
A firm's \cost function is given by C(x) = 2x^2 + 5x + 10. If the firm's revenue function is R(x) = 20x - 2x^2, what is the firm's profit function?
A. P(x) = 18x - 2x^2
B. P(x) = 18x + 2x^2
C. P(x) = 20x - 2x^2
D. P(x) = 20x + 2x^2
Question 13
A firm's production function is given by Q = 2L^2 + 3K. The firm's \cost function is C(L, K) = 2L + 3K. Find the firm's profit-maximizing values of L and K.
A. L = 2, K = 3
B. L = 3, K = 2
C. L = 4, K = 1
D. L = 1, K = 4
Question 14
A country's balance of payments (BOP) accounts can be classified into three main categories: current account, capital account, and financial account. Which of the following is NOT a component of the current account?
A. Exports
B. Imports
C. Foreign Direct Investment (FDI)
D. Income from abroad
Question 15
The following diagram shows the production possibilities frontier (PPF) for a country. Which of the following statements is NOT true?
A. The PPF shows the maximum possible output of a country
B. The PPF is a graphical representation of the trade-off between two goods
C. The PPF is a straight line
D. The PPF is a curved line

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