POST UTME CRAWFORD UNIVERSITY 2017 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm has a production function Q = 2L + 3K, where L is labor and K is capital. If the firm's output is 100 units and the price of output is ₦10, what is the firm's optimal combination of labor and capital?
A. L = 20, K = 30
B. L = 30, K = 20
C. L = 25, K = 25
D. L = 15, K = 35
Question 2
A monopolist has a \cost function C = 100 + 2Q and a revenue function R = 20Q. What is the monopolist's profit-maximizing output?
A. Q = 10
B. Q = 20
C. Q = 30
D. Q = 40
Question 3
A consumer has a utility function U(x, y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 100, and the prices of the two goods are p_x = 5 and p_y = 3, what is the consumer's optimal bundle of goods?
A. x = 10, y = 10
B. x = 15, y = 5
C. x = 20, y = 0
D. x = 0, y = 20
Question 4
A government imposes a tax on a firm's output. If the firm's supply curve shifts to the left, what will be the effect on the firm's output and price?
A. The firm will increase its output and lower its price.
B. The firm will decrease its output and lower its price.
C. The firm will increase its output and raise its price.
D. The firm will decrease its output and raise its price.
Question 5
A market has a demand function P = 100 - 2Q and a supply function P = 20 + Q. What is the equilibrium price and quantity in this market?
A. P = 60, Q = 20
B. P = 40, Q = 30
C. P = 50, Q = 25
D. P = 70, Q = 15
Question 6
A consumer's budget constraint is a graphical representation of the various combinations of two goods that the consumer can afford to purchase given their income and prices. Which of the following is a characteristic of a consumer's budget constraint?
A. It is downward sloping
B. It is upward sloping
C. It is horizontal
D. It is vertical
Question 7
A monopolist's marginal revenue (MR) curve is a graphical representation of the rate of change of total revenue with respect to the quantity of output produced. Which of the following is a characteristic of a monopolist's MR curve?
A. It is downward sloping
B. It is upward sloping
C. It is horizontal
D. It is vertical
Question 8
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 labor and capital are increased by 20% and 15% respectively, what is the percentage change in output?
A. 5%
B. 10%
C. 15%
D. 20%
Question 9
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \), where Q is output, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 5%
B. 10%
C. 15%
D. 20%
Question 10
A country's GDP is ₦100 billion, its imports are ₦30 billion and its exports are ₦20 billion. What is its balance of trade?
A. ₦10 billion surplus
B. ₦10 billion deficit
C. ₦20 billion surplus
D. ₦20 billion deficit
Question 11
The demand and supply curves for a commodity are given by D = 100 - 2p and S = 50 + p respectively, where p is the price of the commodity. What is the equilibrium price and quantity of the commodity?
A. p = 25, Q = 75
B. p = 50, Q = 50
C. p = 75, Q = 25
D. p = 100, Q = 0
Question 12
A country's GDP is ₦100 billion, its imports are ₦30 billion and its exports are ₦20 billion. What is its balance of trade?
A. ₦10 billion surplus
B. ₦10 billion deficit
C. ₦20 billion surplus
D. ₦20 billion deficit
Question 13
The demand and supply curves for a commodity are given by D = 100 - 2p and S = 50 + p respectively, where p is the price of the commodity. What is the equilibrium price and quantity of the commodity?
A. p = 25, Q = 75
B. p = 50, Q = 50
C. p = 75, Q = 25
D. p = 100, Q = 0
Question 14
A government's budget is given by R + T = G + I, where R is revenue, T is taxation, G is government exp\enditure, and I is investment. If the government's revenue is $50 billion, taxation is $20 billion, government exp\enditure is $30 billion, and investment is $10 billion, what is the government's budget deficit?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion
Question 15
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦3 respectively, what is the consumer's optimal bundle of x and y?
A. x = 60, y = 40
B. x = 40, y = 60
C. x = 50, y = 50
D. x = 30, y = 70

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