POST UTME CRAWFORD UNIVERSITY 2021 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm's production function is given by Q = 100L^0.5K^0.5, where L is labor and K is capital. The firm's \cost function is given by C = 10L + 20K. What is the firm's profit-maximizing level of labor?
Question 2
The following diagram shows the demand and supply curves of a market. If the price of the good is ₦100, the quantity demanded is
Question 3
A monopolistically competitive firm faces a demand curve given by Q = 100 - 2P and a marginal revenue curve given by MR = 50 - 2Q. Find the firm's profit-maximizing output and price.
Question 4
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \). If the country's exports (X) are 100, imports (M) are 80, foreign investment (F) is 20, and domestic investment (I) is 30, what is the balance of payments?
Question 5
The Nigerian government has implemented a value-added tax (VAT) of 10% on all goods and services. The VAT is levied on the value added to the goods and services at each stage of production. What is the VAT on a good that \costs ₦100 to produce and is sold for ₦120?
Question 6
A country's GDP is given by GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the country's consumption is 100, investment is 50, government sp\ending is 75, exports are 150, and imports are 100, what is the country's GDP?
Question 7
A government's budget constraint is given by the equation: G + T = R + \( ΔM/Δt \). If the government's sp\ending (G) is 100, taxes (T) are 80, revenue (R) is 120, and the rate of change of money supply \( ΔM/Δt \) is 20, what is the government's budget deficit?
Question 8
A monopolistically competitive firm faces a demand curve given by Q = 100 - 2P. The firm's marginal \cost curve is MC = 10 + 2Q. What is the firm's profit-maximizing price?
Question 9
A monopolistically competitive firm faces a demand curve given by Q = 100 - 2P. The firm's marginal \cost curve is MC = 10 + 2Q. What is the firm's profit-maximizing price?
Question 10
The following table shows the production function of a firm. If the firm uses 10 units of labor, the output is
Question 11
A firm's \cost function is given by ( C(x) = 2x^2 + 10x + 5 ). If the firm's revenue function is ( R(x) = 20x - x^2 ), what is the break-even point?
Question 12
The Nigerian government has implemented a policy to increase the production of rice in the country. The policy includes providing subsidies to farmers, improving irrigation systems, and increa\sing the supply of fertilizers. However, the policy has been criticized for being too expensive and for not addres\sing the root causes of the country's food insecurity. Which of the following is a potential consequence of the policy?
Question 13
A 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 2x + 3y = 12, and the prices of the two goods are p_x = 2 and p_y = 3, calculate the consumer's optimal consumption bundle \( x*, y* \) and the maximum utility U*.
Question 14
A firm's \cost function is given by ( C(x) = 2x^2 + 10x + 5 ). If the firm's revenue function is ( R(x) = 20x - x^2 ), what is the break-even point?
Question 15
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm's marginal revenue function is given by MR = -2, what is the firm's optimal price?
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