POST UTME CRAWFORD UNIVERSITY 2018 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's utility function is given by U(x,y) = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦3 respectively, what is the optimal bundle of goods?
A. (10, 10)
B. (20, 20)
C. (30, 30)
D. (40, 40)
Question 2
A firm's total revenue is given by the equation TR = 100x - 2x^2, where x is the number of units sold. If the firm sells 20 units, what is the total revenue?
A. ₦1000
B. ₦1200
C. ₦1800
D. ₦2000
Question 3
A consumer faces a budget constraint of ₦100. If the consumer's indifference curves are given by U(x, y) = 2x + 3y, what is the consumer's optimal bundle of x and y?
A. x = 20, y = 30
B. x = 30, y = 20
C. x = 40, y = 10
D. x = 50, y = 0
Question 4
A consumer's utility function is given by U(x, y) = 2x + 3y. If the consumer's budget constraint is 10x + 5y = 50, what is the consumer's optimal bundle of x and y?
A. x = 2, y = 5
B. x = 3, y = 4
C. x = 4, y = 3
D. x = 5, y = 2
Question 5
A firm faces a total revenue function given by TR = 100Q - 2Q^2. What is the price elasticity of demand at Q = 20?
A. 0.5
B. 1
C. 2
D. 3
Question 6
A government imposes a tax of ₦10 per unit on a firm's output. If the firm's supply curve is given by Q = 2P - 10, what is the new supply curve after the tax is imposed?
A. Q = 2P - 20
B. Q = 2P - 15
C. Q = 2P - 10
D. Q = 2P + 10
Question 7
Suppose a country's export price index increases by 10% while its import price index decreases by 5%. What will be the effect on the country's balance of payments?
A. The country's trade deficit will increase.
B. The country's trade surplus will increase.
C. The country's trade deficit will decrease.
D. The country's trade surplus will decrease.
Question 8
A country's balance of payments is in surplus, with a trade balance of ₦5,000 and a current account balance of ₦3,000. U\sing the concept of balance of payments, explain why the country's balance of payments is in surplus.
A. The country has a high level of exports, leading to a high trade balance.
B. The country has a high level of imports, leading to a low trade balance.
C. The country has a high level of foreign investment, leading to a high current account balance.
D. The country has a high level of domestic production, leading to a low current account balance.
Question 9
A government budget is given by B = T + I, where B is the budget, T is tax revenue, and I is government sp\ending. If the government's tax revenue is ₦1000 and government sp\ending is ₦1500, what is the budget?
A. ₦1000
B. ₦1500
C. ₦2000
D. ₦2500
Question 10
A central bank increases the reserve requirement for commercial banks. What will be the effect on the money supply?
A. The money supply will increase.
B. The money supply will decrease.
C. The money supply will remain unchanged.
D. The money supply will increase in the short run but decrease in the long run.
Question 11
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 are fixed at 16 and 9 respectively, what is the marginal product of labor?
A. 1
B. 2
C. 3
D. 4
Question 12
A government imposes a tax of ₦100 on a firm's output. If the firm's supply curve is given by \( Q_s = 100 + 2P \), what is the firm's new supply curve?
A. \( Q_s = 100 + 2P - 100 \)
B. \( Q_s = 100 + 2P + 100 \)
C. \( Q_s = 100 + 2P \)
D. \( Q_s = 100 - 2P \)
Question 13
A monopolist faces a demand curve given by \( Q_d = 100 - 2P \). If the firm's marginal revenue (MR) curve is given by \( MR = 200 - 2P \), what is the firm's optimal price?
A. \( P = 50 \)
B. \( P = 75 \)
C. \( P = 100 \)
D. \( P = 120 \)
Question 14
A country's GDP is given by the equation Y = C + I + G, where C is consumption, I is investment, and G is government sp\ending. If the country's GDP is ₦100 billion, and consumption is ₦30 billion, investment is ₦20 billion, and government sp\ending is ₦15 billion, what is the value of the marginal propensity to consume?
A. 0.3
B. 0.4
C. 0.5
D. 0.6
Question 15
A firm's \cost function is given by C(L, K) = 2L + 3K, where C is the total \cost, L is the number of labor units, and K is the number of capital units. If the firm has 5 labor units and 3 capital units, what is the total \cost?
A. ₦15
B. ₦18
C. ₦20
D. ₦22

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