Practice Post UTME CRAWFORD UNIVERSITY economics 2025 Past Questions

Question 1 View Details

A consumer's indifference curve is downward sloping and convex to the origin. What is the likely reason for this shape?

Correct A. Diminishing marginal utility

B. Increa\sing marginal utility

C. Cons\tant marginal utility

D. No relationship with marginal utility

Correct Answer: A

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Question 2 View Details

A perfectly competitive market has a supply curve that is upward sloping. What is the likely reason for this shape?

A. Firms are willing to supply more at higher prices

Correct B. Firms are willing to supply less at higher prices

C. Firms are willing to supply the same quantity at any price

D. No relationship with supply

Correct Answer: B

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Question 3 View Details

A monopolist faces a demand curve that is downward sloping. What is the likely reason for this shape?

A. Consumer demand is inelastic

Correct B. Consumer demand is elastic

C. Consumer demand is unit elastic

D. No relationship with demand

Correct Answer: B

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Question 4 View Details

A government budget is in surplus. What is the likely reason for this?

Correct A. Government revenue is greater than government exp\enditure

B. Government revenue is less than government exp\enditure

C. Government revenue equals government exp\enditure

D. No relationship with government budget

Correct Answer: A

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Question 5 View Details

A firm's production function is given by Q = 2L + 3K. What is the likely reason for the positive slope of the production function?

A. Law of diminishing returns

Correct B. Law of increa\sing returns

C. Law of cons\tant returns

D. No relationship with production function

Correct Answer: B

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Question 6 View Details

The Nigerian government has implemented a policy to increase agricultural production. However, the policy has led to a decrease in the production of other goods. What is the opportunity \cost of increa\sing agricultural production?

Correct A. The decrease in production of other goods

B. The increase in production of agricultural goods

C. The decrease in income of farmers

D. The increase in prices of agricultural goods

Correct Answer: A

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Question 7 View Details

A firm is producing a good with a total revenue of ₦100,000 and a total \cost of ₦80,000. What is the profit of the firm?

Correct A. ₦20,000

B. ₦30,000

C. ₦40,000

D. ₦50,000

Correct Answer: A

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Question 8 View Details

The demand for a good is given by the equation Qd = 100 - 2P and the supply is given by Qs = 2P - 50. What is the equilibrium price and quantity?

Correct A. P = 25, Q = 75

B. P = 30, Q = 80

C. P = 35, Q = 85

D. P = 40, Q = 90

Correct Answer: A

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Question 9 View Details

A firm is producing a good with a marginal revenue of ₦50 and a marginal \cost of ₦40. What is the profit-maximizing quantity?

Correct A. 100 units

B. 200 units

C. 300 units

D. 400 units

Correct Answer: A

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Question 10 View Details

The Nigerian government has implemented a policy to increase the production of a good. However, the policy has led to a decrease in the production of other goods. What is the opportunity \cost of increa\sing the production of the good?

Correct A. The decrease in production of other goods

B. The increase in production of the good

C. The decrease in income of farmers

D. The increase in prices of the good

Correct Answer: A

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Question 11 View Details

A monopolist's demand curve is given by Q = 100 - 2P, and the inverse supply curve is given by P = 10 + 0.5Q. Find the equilibrium price and quantity.

A. ₦20, 50

B. ₦25, 75

Correct C. ₦30, 100

D. ₦35, 125

Correct Answer: C

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Question 12 View Details

A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the prices of the goods are ₦5 and ₦3 respectively, and the consumer's income is ₦100, find the optimal quantities of the goods.

A. x = 10, y = 20

Correct B. x = 15, y = 30

C. x = 20, y = 40

D. x = 25, y = 50

Correct Answer: B

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Question 13 View Details

A firm's production function is given by Q = 2L + 3K, where L and K are the quantities of labor and capital respectively. If the firm's output is 100 units, and the price of labor is ₦10 and the price of capital is ₦20, find the optimal quantities of labor and capital.

A. L = 20, K = 30

B. L = 30, K = 40

Correct C. L = 40, K = 50

D. L = 50, K = 60

Correct Answer: C

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Question 14 View Details

A country's GDP is given by the equation Y = C + I + G, where C, I, and G are the consumption, investment, and government sp\ending respectively. If the country's GDP is ₦100 billion, and the consumption is ₦50 billion, the investment is ₦20 billion, and the government sp\ending is ₦30 billion, find the value of the multiplier.

A. 2

Correct B. 3

C. 4

D. 5

Correct Answer: B

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Question 15 View Details

A monopolist's demand curve is given by Q = 100 - 2P, and the inverse supply curve is given by P = 10 + 0.5Q. Find the equilibrium price and quantity.

A. ₦20, 50

B. ₦25, 75

Correct C. ₦30, 100

D. ₦35, 125

Correct Answer: C

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Question 16 View Details

A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the prices of the goods are ₦5 and ₦3 respectively, and the consumer's income is ₦100, find the optimal quantities of the goods.

A. x = 10, y = 20

Correct B. x = 15, y = 30

C. x = 20, y = 40

D. x = 25, y = 50

Correct Answer: B

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Question 17 View Details

A firm's production function is given by Q = 2L + 3K, where L and K are the quantities of labor and capital respectively. If the firm's output is 100 units, and the price of labor is ₦10 and the price of capital is ₦20, find the optimal quantities of labor and capital.

A. L = 20, K = 30

B. L = 30, K = 40

Correct C. L = 40, K = 50

D. L = 50, K = 60

Correct Answer: C

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Question 18 View Details

A country's GDP is given by the equation Y = C + I + G, where C, I, and G are the consumption, investment, and government sp\ending respectively. If the country's GDP is ₦100 billion, and the consumption is ₦50 billion, the investment is ₦20 billion, and the government sp\ending is ₦30 billion, find the value of the multiplier.

A. 2

B. 3

C. 4

D. 5

Correct Answer: VIEW ANSWER

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Question 19 View Details

The Marshall-Lerner condition states that a country's balance of payments will improve if the sum of the percentage changes in its export and import prices is greater than the percentage change in its exchange rate. Which of the following is a correct interpretation of the Marshall-Lerner condition?

A. The Marshall-Lerner condition implies that a country's balance of payments will improve if its export prices increase and import prices decrease.

B. The Marshall-Lerner condition states that a country's balance of payments will improve if its exchange rate appreciates and its export prices increase.

Correct C. The Marshall-Lerner condition implies that a country's balance of payments will improve if the sum of the percentage changes in its export and import prices is greater than the percentage change in its exchange rate.

D. The Marshall-Lerner condition states that a country's balance of payments will improve if its exchange rate depreciates and its import prices decrease.

Correct Answer: C

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Question 20 View Details

A firm's demand for labor is given by the equation Qd = 100L^\( -1/2 \), where Qd is the quantity of labor demanded and L is the wage rate. If the wage rate is 4, what is the quantity of labor demanded?

Correct A. 20

B. 25

C. 30

D. 35

Correct Answer: A

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Question 21 View Details

The government of a country is considering a policy to reduce its budget deficit. Which of the following is a correct way to reduce the budget deficit?

A. Increase government sp\ending and decrease taxes.

Correct B. Decrease government sp\ending and increase taxes.

C. Increase taxes and decrease government sp\ending.

D. Decrease taxes and increase government sp\ending.

Correct Answer: B

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Question 22 View Details

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 country's GDP is 100, consumption is 30, investment is 20, government sp\ending is 10, exports are 20, and imports are 10, what is the value of the country's net exports?

A. 10

Correct B. 20

C. 30

D. 40

Correct Answer: B

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Question 23 View Details

A firm's production function is given by the equation Q = 2L^0.5K^0.5, where Q is the quantity produced, L is labor, and K is capital. If the firm uses 100 units of labor and 100 units of capital, what is the quantity produced?

A. 100

Correct B. 200

C. 300

D. 400

Correct Answer: B

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Question 24 View Details

A country's balance of payments is given by the equation BOP = X - M, where X is exports and M is imports. If the country's exports are 100 and imports are 80, what is the value of the country's balance of payments?

Correct A. 10

B. 20

C. 30

D. 40

Correct Answer: A

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Question 25 View Details

A firm's supply function is given by the equation Qs = 100 + 2P, where Qs is the quantity supplied and P is the price. If the price is 20, what is the quantity supplied?

A. 120

Correct B. 140

C. 160

D. 180

Correct Answer: B

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