POST UTME CRAWFORD UNIVERSITY 2020 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
The following diagram shows the production possibilities frontier (PPF) for a country. Which of the following statements is NOT true?
Question 2
A firm's demand function is given by Q = 100 - 2P. U\sing the concept of elasticity of demand, determine the price elasticity of demand at P = 20.
Question 3
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing quantity and price.
Question 4
A firm produces two goods, X and Y, u\sing two inputs, labor (L) and capital (K). The production functions are given by Qx = 10L^0.5K^0.5 and Qy = 5L^0.2K^0.8. If the firm has 100 units of labor and 50 units of capital, find the optimal allocation of labor and capital between the two goods.
Question 5
Consider a small open economy with a fixed exchange rate. The government imposes a tariff of 15% on imported goods. U\sing the Marshall-Lerner condition, determine whether the tariff will lead to a trade surplus or deficit.
Question 6
A monopolist faces a demand curve with the following equation: Q = 100 - 2P. If the firm's marginal \cost (MC) is ₦20, what is the profit-maximizing price?
Question 7
The central bank of a country has a monetary policy objective of keeping the inflation rate at 2%. If the current inflation rate is 4% and the money supply is increa\sing at a rate of 10% per annum, what should be the target interest rate to achieve the desired inflation rate?
Question 8
A firm is considering two different production techno\logies: one that uses a lot of labor and another that uses a lot of capital. The firm's production function is given by Q = 10L^0.5K^0.5, where Q is the quantity produced, L is the amount of labor used, and K is the amount of capital used. If the firm has a budget constraint of 100 units of labor and 50 units of capital, and the wage rate is 10 units of output per unit of labor, and the rental rate of capital is 20 units of output per unit of capital, which techno\logy should the firm choose?
Question 9
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \), where BOP is the balance of payments, X is the value of exports, M is the value of imports, F is the value of foreign investment, and I is the value of domestic investment. If the value of exports is 100, the value of imports is 80, the value of foreign investment is 20, and the value of domestic investment is 10, what is the balance of payments?
Question 10
A firm's average \cost (AC) is given by the equation AC = 2Q + 10. If the firm's marginal \cost (MC) is ₦20, what is the profit-maximizing output level?
Question 11
A consumer's indifference curve is a graphical representation of the various combinations of two goods that the consumer is equally willing to consume. Which of the following statements is NOT true?
Question 12
A firm operating in a perfectly competitive market is considering an increase in production. If the marginal revenue (MR) curve is downward-sloping, what will be the effect on the firm's profit-maximizing output?
Question 13
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 price elasticity of demand is 0.5, find the percentage change in quantity demanded when the price increases by 10%.
Question 14
A firm is operating in a perfectly competitive market with a cons\tant average \cost (AC) of ₦100 per unit. If the market price (P) falls to ₦80 per unit, what will be the firm's new profit-maximizing output level?
Question 15
A firm's total revenue (TR) is given by the equation TR = 2Q^2 - 10Q + 100. If the firm's marginal revenue (MR) is ₦20, what is the profit-maximizing output level?
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