POST UTME CRAWFORD UNIVERSITY 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm has a demand function Q = 100 - 2P. If the price is ₦50, what is the quantity demanded?
A. 50
B. 75
C. 100
D. 125
Question 2
A firm is faced with a budget constraint given by 2L + 3K = 12, where L is the labor, and K is the capital. If the firm wants to maximize its profit, which of the following combinations of labor and capital would be most profitable?
A. L = 2, K = 2
B. L = 4, K = 1
C. L = 6, K = 0
D. L = 0, K = 4
Question 3
A government wants to reduce the inflation rate in an economy. Which of the following monetary policies would be most effective in achieving this goal?
A. Increa\sing the money supply
B. Decrea\sing the money supply
C. Increa\sing the interest rate
D. Decrea\sing the interest rate
Question 4
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current inputs are L = 4 and K = 9, what is the marginal product of labor?
A. 0.5
B. 1
C. 1.5
D. 2
Question 5
The government of a country imposes a tax of ₦50 per unit on the production of a good. If the price of the good is currently ₦150 per unit, and if the quantity demanded is 20 units, then the quantity supplied is
A. 15
B. 20
C. 25
D. 30
Question 6
The following diagram shows the production function for a firm. If the firm is currently producing 10 units of output, and if the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, then the opportunity \cost of producing one more unit of output is
A. ₦50
B. ₦100
C. ₦200
D. ₦300
Question 7
The demand for a commodity is said to be inelastic if a change in its price leads to a change in the quantity demanded of the commodity by a percentage that is less than the percentage change in the price. Which of the following statements is true about inelastic demand?
A. The demand for a commodity is inelastic if a change in its price leads to a change in the quantity demanded of the commodity by a percentage that is greater than the percentage change in the price.
B. The demand for a commodity is inelastic if a change in its price leads to a change in the quantity demanded of the commodity by a percentage that is less than the percentage change in the price.
C. The demand for a commodity is inelastic if a change in its price leads to a change in the quantity demanded of the commodity by a percentage that is equal to the percentage change in the price.
D. The demand for a commodity is inelastic if a change in its price leads to a change in the quantity demanded of the commodity by a percentage that is greater than the percentage change in the price.
Question 8
A firm's \cost function is given by C = 100 + 2L + 3K. If the firm's current inputs are L = 4 and K = 9, what is the total \cost?
A. 250
B. 300
C. 350
D. 400
Question 9
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm's current labor and capital inputs are 16 and 9 units respectively, what is the marginal product of labor?
A. 1/4
B. 1/2
C. 1
D. 2
Question 10
A country's GDP grows at an annual rate of 5% while its population increases at a rate of 2.5%. What is the rate of growth of per capita GDP?
A. 3.5%
B. 2%
C. 4%
D. 6%
Question 11
A firm produces two goods, A and B, u\sing two inputs, labor and capital. The production function for good A is Q_A = 2L^0.5K^0.5, and the production function for good B is Q_B = 3L^0.7K^0.3. If the firm allocates 100 units of labor and 50 units of capital, what is the marginal rate of technical substitution (MRTS) of labor for good A with respect to good B?
A. 0.5
B. 0.6
C. 0.7
D. 0.8
Question 12
A firm has a production function given by Q = 2L + 3K, where L is labor and K is capital. If the firm has 10 units of labor and 5 units of capital, what is the total output?
A. 20
B. 30
C. 35
D. 40
Question 13
A consumer has a budget of ₦1000 and a demand function given by Q = 2P - 10. If the price of the commodity is 10, what is the consumer's willingness to pay?
A. ₦1000
B. ₦900
C. ₦800
D. ₦700
Question 14
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's output increases by 20% with a 10% increase in labor and a 15% increase in capital, what is the return to scale?
A. Increa\sing
B. Decrea\sing
C. Cons\tant
D. Indeterminate
Question 15
A country has a trade deficit of ₦100 billion and a current account deficit of ₦50 billion. What is the balance of payments identity?
A. BOP = CA - FA
B. BOP = CA + FA
C. BOP = CA - CA
D. BOP = FA - CA

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