POST UTME CRAWFORD UNIVERSITY 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \). If the country's exports are ₦100 billion, imports are ₦80 billion, foreign investment is ₦20 billion, and domestic investment is ₦30 billion, what is the balance of payments?
A. ₦10 billion
B. ₦20 billion
C. ₦30 billion
D. ₦40 billion
Question 2
The Nigerian government has implemented a policy to increase the production of textiles. What is the expected effect on the employment in the textile industry?
A. Increase in employment
B. Decrease in employment
C. No change in employment
D. Uncertainty in employment
Question 3
A monopolist faces a demand curve given by Q = 100 - 2P. The monopolist's marginal \cost curve is given by MC = 10 + 2Q. What is the monopolist's profit-maximizing price?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 4
A farmer in Nigeria produces 1000 kg of maize per hectare. The price of maize is ₦150 per kg. If the government imposes a 20% tax on the sale of maize, what is the new price of maize per kg?
A. ₦180
B. ₦180.00
C. ₦180.00
D. ₦180.00
Question 5
A consumer's utility function is given by U(x, y) = 2x + 3y. The consumer's budget constraint is 2x + 3y = 12. What is the consumer's optimal bundle of x and y?
A. x = 2, y = 4
B. x = 3, y = 3
C. x = 4, y = 2
D. x = 5, y = 1
Question 6
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm has 4 units of labor and 9 units of capital, what is the maximum output?
A. 12
B. 15
C. 18
D. 20
Question 7
A firm's \cost function is given by C(x) = 2x^2 + 10x + 5. If the firm's revenue function is R(x) = 20x - 2x^2, find the profit-maximizing level of output.
A. 10
B. 15
C. 20
D. 25
Question 8
A central bank increases the reserve requirement for commercial banks. What is the likely effect on the money supply?
A. Increase
B. Decrease
C. No change
D. Uncertain
Question 9
Consider a firm operating in a perfectly competitive market. If the firm's marginal revenue (MR) curve intersects the marginal \cost (MC) curve at point E, and the firm's average revenue (AR) curve is downward sloping, what can be concluded about the firm's production level?
A. The firm is producing at its profit-maximizing level.
B. The firm is producing at its minimum efficient scale.
C. The firm is producing at its maximum efficient scale.
D. The firm is producing at its minimum \cost level.
Question 10
The government of Nigeria has implemented a policy to increase agricultural production. The policy includes providing subsidies to farmers and investing in irrigation systems. What is the likely effect of this policy on the agricultural sector?
A. A decrease in agricultural production
B. An increase in agricultural production
C. No change in agricultural production
D. A decrease in agricultural prices
Question 11
The concept of scarcity in economics implies that the production of one good is at the expense of another good. What is the opportunity \cost of producing more of a particular good?
A. The \cost of producing the alternative good
B. The value of the alternative good
C. The \cost of producing the particular good
D. The value of the particular good
Question 12
A firm's demand curve is given by Q = 100 - 2P. The firm's marginal \cost is MC = 10. What is the profit-maximizing price and quantity?
A. P = 40, Q = 30
B. P = 50, Q = 20
C. P = 60, Q = 10
D. P = 70, Q = 0
Question 13
The following table shows the production \costs of a firm in a perfectly competitive market. What is the minimum price at which the firm will produce 100 units of output?
A. ₦100
B. ₦120
C. ₦150
D. ₦180
Question 14
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \). If the country's exports are $100 billion, imports are $80 billion, foreign investment is $20 billion, and domestic investment is $30 billion, what is the balance of payments?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion
Question 15
A government imposes a tax on a good, which causes the supply curve to shift from S1 to S2. If the original equilibrium price is P1 = 10 and the new equilibrium price is P2 = 15, what is the tax rate?
A. 25%
B. 30%
C. 35%
D. 40%

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