Practice post utme crawford university economics 2017 Past Questions

Question 1

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%

Correct C. 15%

D. 20%

Correct Answer: C

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Question 2

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

Correct B. ₦10 billion deficit

C. ₦20 billion surplus

D. ₦20 billion deficit

Correct Answer: B

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Question 3

A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦100 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?

Correct A. x = 10, y = 5

B. x = 5, y = 10

C. x = 15, y = 3

D. x = 3, y = 15

Correct Answer: A

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Question 4

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%

Correct C. 15%

D. 20%

Correct Answer: C

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Question 5

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

Correct B. ₦10 billion deficit

C. ₦20 billion surplus

D. ₦20 billion deficit

Correct Answer: B

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Question 6

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?

Correct A. x = 60, y = 40

B. x = 40, y = 60

C. x = 50, y = 50

D. x = 30, y = 70

Correct Answer: A

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Question 7

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

Correct C. L = 25, K = 25

D. L = 15, K = 35

Correct Answer: C

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Question 8

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?

Correct A. P = 60, Q = 20

B. P = 40, Q = 30

C. P = 50, Q = 25

D. P = 70, Q = 15

Correct Answer: A

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Question 9

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

Correct B. Q = 20

C. Q = 30

D. Q = 40

Correct Answer: B

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Question 10

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

Correct C. L = 25, K = 25

D. L = 15, K = 35

Correct Answer: C

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Question 11

A firm faces a demand curve given by Q = 100 - 2P and a supply curve given by Q = 2P - 10. If the firm is currently producing 60 units at a price of ₦20, what is the firm's profit-maximizing output?

A. 40

Correct B. 60

C. 80

D. 100

Correct Answer: B

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Question 12

A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is 2x + 3y = ₦100, and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?

A. (10, 20)

B. (20, 10)

Correct C. (15, 15)

D. (5, 25)

Correct Answer: C

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Question 13

A firm's production function is given by Q = 2L^0.5 K^0.5, where L and K are the quantities of labor and capital respectively. If the firm is currently producing 100 units, and the price of labor is ₦10 and the price of capital is ₦20, what is the firm's \cost-minimizing input bundle?

A. (10, 5)

B. (5, 10)

Correct C. (15, 3.33)

D. (3.33, 15)

Correct Answer: C

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Question 14

A consumer's demand curve for a good is given by Q = 100 - 2P, where P is the price of the good. If the consumer's income is ₦100, and the price of the good is ₦20, what is the consumer's willingness to pay for the good?

A. ₦50

B. ₦75

C. ₦100

Correct D. ₦125

Correct Answer: D

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Question 15

A firm's supply curve is given by Q = 2P - 10, where P is the price of the good. If the firm's fixed \cost is ₦50, and the price of the good is ₦20, what is the firm's total revenue?

A. ₦100

B. ₦150

Correct C. ₦200

D. ₦250

Correct Answer: C

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Question 16

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%

Correct B. 10%

C. 15%

D. 20%

Correct Answer: B

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Question 17

A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are $2 and $3 respectively, and the consumer's income is $15, what is the consumer's optimal bundle of goods?

Correct A. x = 3, y = 2

B. x = 2, y = 3

C. x = 1, y = 4

D. x = 4, y = 1

Correct Answer: A

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Question 18

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?

Correct A. p = 25, Q = 75

B. p = 50, Q = 50

C. p = 75, Q = 25

D. p = 100, Q = 0

Correct Answer: A

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Question 19

A country's GDP is given by GNP - $ imports - exports $. If the country's GNP is $100 billion, imports are $20 billion, and exports are $15 billion, what is the country's GDP?

Correct A. $95 billion

B. $100 billion

C. $105 billion

D. $110 billion

Correct Answer: A

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Question 20

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

Correct C. $30 billion

D. $40 billion

Correct Answer: C

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Question 21

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%

Correct B. 10%

C. 15%

D. 20%

Correct Answer: B

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Question 22

A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are $2 and $3 respectively, and the consumer's income is $15, what is the consumer's optimal bundle of goods?

Correct A. x = 3, y = 2

B. x = 2, y = 3

C. x = 1, y = 4

D. x = 4, y = 1

Correct Answer: A

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Question 23

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?

Correct A. p = 25, Q = 75

B. p = 50, Q = 50

C. p = 75, Q = 25

D. p = 100, Q = 0

Correct Answer: A

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Question 24

A firm operating under perfect competition faces a market demand curve that is linear and downward-sloping. If the firm's marginal revenue (MR) curve intersects its average revenue (AR) curve at a point where MR = AR = 100, and the price elasticity of demand (PED) is 2, what is the firm's optimal price?

A. ₦50

B. ₦75

Correct C. ₦100

D. ₦125

Correct Answer: C

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Question 25

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

Correct B. x = 15, y = 5

C. x = 20, y = 0

D. x = 0, y = 20

Correct Answer: B

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