POST UTME CRAWFORD UNIVERSITY 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's GDP is calculated as the sum of the value of all final goods and services produced within its borders. However, if a foreign company produces goods within the country, but the goods are not sold within the country, how would this affect the country's GDP?
A. The country's GDP would increase by the value of the goods produced.
B. The country's GDP would decrease by the value of the goods produced.
C. The country's GDP would remain unchanged.
D. The country's GDP would increase by the value of the goods sold within the country.
Question 2
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost (MC) is given by MC = 10 + 2Q. What is the profit-maximizing price \( P* \)?
A. \( P* = 20 \)
B. \( P* = 30 \)
C. \( P* = 40 \)
D. \( P* = 50 \)
Question 3
A monopolist produces a good with a marginal \cost of ₦10 and a price of ₦20. What is the profit-maximizing quantity of the good?
A. 10
B. 20
C. 30
D. 40
Question 4
A firm's \cost function is given by C(Q) = 2Q^2 + 10Q. What is the marginal \cost when Q = 20?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 5
A monopolistically competitive firm faces a demand curve with an elasticity of -2. If the firm increases its price by 10%, what is the percentage change in quantity demanded?
A. 20%
B. 15%
C. 10%
D. 5%
Question 6
A consumer has a budget of ₦100 and is considering two goods with prices ₦20 and ₦30 respectively. If the consumer's utility function is U(x,y) = 2x + 3y, what is the optimal combination of x and y?
A. x = 5 units, y = 2 units
B. x = 10 units, y = 1 unit
C. x = 15 units, y = 0 units
D. x = 0 units, y = 5 units
Question 7
A country's GNP is calculated as the sum of its GDP plus its net factor income from abroad. If a country's GDP is ₦100 billion and its net factor income from abroad is ₦20 billion, what is its GNP?
A. ₦120 billion
B. ₦100 billion
C. ₦80 billion
D. ₦60 billion
Question 8
A country's GDP is given by the equation 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 value of consumption is ₦500 billion, the value of investment is ₦200 billion, the value of government sp\ending is ₦300 billion, the value of exports is ₦100 billion, and the value of imports is ₦120 billion, what is the GDP?
A. ₦1.2 trillion
B. ₦1.3 trillion
C. ₦1.4 trillion
D. ₦1.5 trillion
Question 9
A firm's production function is given by Q = 3K^\( 1/3 \)L^\( 1/3 \). If the firm's capital and labor inputs are increased by 25% and 20% respectively, what is the percentage change in output?
A. 10%
B. 12%
C. 15%
D. 20%
Question 10
A government imposes a tax of ₦10 on a firm's output. The firm's supply curve is given by Q = 100 - 2P. What is the new supply curve after the tax?
A. \( Q = 100 - 2\( P + 10 \ \) )
B. \( Q = 100 - 2P + 10 \)
C. \( Q = 100 - 2\( P - 10 \ \) )
D. \( Q = 100 - 2P - 10 \)
Question 11
A firm's \cost function is given by C = 2L + 3K, where C is the \cost, L is the labor, and K is the capital. If the firm wants to minimize its \cost, what is the optimal level of labor and capital?
A. L = 1, K = 2
B. L = 2, K = 1
C. L = 3, K = 3
D. L = 4, K = 4
Question 12
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 price at which the quantity demanded is 50?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 13
A firm's production function is given by Q = 2K^\( 1/2 \)L^\( 1/2 \), where Q is output, K is capital, and L is labor. If the firm's capital and labor inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 10%
B. 12%
C. 15%
D. 20%
Question 14
A firm is producing at the point where P = MC. If the price elasticity of demand is -2 and the firm increases its price by 10%, what is the change in total revenue?
A. ₦2500
B. -₦2500
C. ₦5000
D. -₦5000
Question 15
A consumer has a budget constraint of ₦100. The price of good X is ₦20 and the price of good Y is ₦30. The consumer's indifference curve is given by U = 2X + 3Y. What is the consumer's optimal consumption bundle?
A. X = 2, Y = 1
B. X = 3, Y = 2
C. X = 4, Y = 3
D. X = 5, Y = 4

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