POST UTME CRAWFORD UNIVERSITY 2019 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's supply function is given by the equation \( Q_s = 2P + 10 \), where Q_s is the quantity supplied and P is the price. If the price is ₦5, what is the quantity supplied?
A. 10
B. 15
C. 20
D. 25
Question 2
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's labor and capital are 10 units and 20 units respectively, what is the value of the firm's output?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 3
A country's inflation rate is given by the equation π = \( P - P^* \) / P^*, where π is the inflation rate, P is the current price level, and P^* is the base price level. If the current price level is ₦100 and the base price level is ₦90, what is the value of the country's inflation rate?
A. 10%
B. 20%
C. 30%
D. 40%
Question 4
A consumer's utility function is given by U(x, y) = 2x^0.5y^0.5. If the consumer's income is ₦1000 and the prices of x and y are ₦20 and ₦30 respectively, what is the consumer's optimal bundle of x and y?
A. x = 10, y = 20
B. x = 15, y = 15
C. x = 20, y = 10
D. x = 25, y = 5
Question 5
A country's demand for a product is given by the equation \( Q_d = 100 - 2P \), where Q_d is the quantity demanded and P is the price. If the price is ₦10, what is the quantity demanded?
A. 50
B. 60
C. 70
D. 80
Question 6
A country's GDP is given by the equation Y = C + I + G + \( X - M \). If the country's consumption is 100, investment is 50, government sp\ending is 200, exports are 150, and imports are 100, what is the country's GDP?
A. 400
B. 500
C. 600
D. 700
Question 7
The demand for a product is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the supply of the product is given by the equation Qs = 2P - 10, what is the equilibrium price and quantity?
A. ₦50, Q = 20
B. ₦60, Q = 25
C. ₦70, Q = 30
D. ₦80, Q = 35
Question 8
A firm is producing at a point on its production function where the marginal product of labor is equal to the wage rate. If the firm increases the number of workers by one, what will happen to the total product?
A. Total product will increase.
B. Total product will decrease.
C. Total product will remain the same.
D. Total product will increase at a decrea\sing rate.
Question 9
A country is experiencing a trade deficit, and the government decides to implement a trade policy to reduce the deficit. Which of the following trade policy tools is most likely to be used?
A. Implement tariffs to increase import \costs.
B. Reduce import quotas to increase imports.
C. Implement export subsidies to increase exports.
D. Reduce export taxes to increase exports.
Question 10
A firm is producing a good with a cons\tant returns to scale production function. If the firm increases the number of workers by 10%, what will happen to the total product?
A. Total product will increase by 10%.
B. Total product will increase by 20%.
C. Total product will increase by 30%.
D. Total product will remain the same.
Question 11
Suppose the money supply in Nigeria increases by 10%. What will happen to the general price level?
A. Increase in general price level
B. Decrease in general price level
C. No change in general price level
D. Increase in interest rate
Question 12
A country's inflation rate is given by the equation π = \( P - P^\( -1 \ \)) / P^\( -1 \) * 100. If the current price level is 100 and the previous price level is 80, what is the inflation rate?
A. 12.5
B. 15
C. 20
D. 25
Question 13
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm wants to maximize its revenue, what price should it charge?
A. $20
B. $30
C. $40
D. $50
Question 14
A country is experiencing a recession, and the government decides to implement a fiscal policy to stimulate economic growth. Which of the following fiscal policy tools is most likely to be used?
A. Increase government sp\ending on infrastructure projects.
B. Reduce taxes to increase disposable income.
C. Increase interest rates to reduce borrowing.
D. Implement a wealth tax to redistribute income.
Question 15
A consumer's budget constraint is given by the equation: 2x + 3y = 12, where x and y are the quantities of two goods. If the consumer wants to maximize its utility, what quantities of each good should it buy?
A. x = 2, y = 2
B. x = 3, y = 3
C. x = 4, y = 4
D. x = 5, y = 5

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