POST UTME CRAWFORD UNIVERSITY 2022 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A country's GDP is given by the equation GDP = C + I + G + \( X - M \), where C is consumption, I is investment, G is government sp\ending, X is exports, and M is imports. If the value of consumption is ₦500 billion, the value of investment is ₦200 billion, the value of government sp\ending is ₦300 billion, the value of exports is ₦100 billion, and the value of imports is ₦120 billion, what is the GDP?
A. ₦1.2 trillion
B. ₦1.3 trillion
C. ₦1.4 trillion
D. ₦1.5 trillion
Question 2
A government is considering a policy to increase the production of a particular good. If the demand for the good is given by the equation Qd = 100 - 2P, and the supply of the good is given by the equation Qs = 2P - 10, what will be the new equilibrium price and quantity if the government imposes a tax of ₦5 per unit on the producers?
A. P = ₦20, Q = 60 units
B. P = ₦25, Q = 70 units
C. P = ₦30, Q = 80 units
D. P = ₦35, Q = 90 units
Question 3
A firm's production function is given by Q = 3K^\( 1/3 \)L^\( 1/3 \). If the firm's capital and labor inputs are increased by 25% and 20% respectively, what is the percentage change in output?
A. 10%
B. 12%
C. 15%
D. 20%
Question 4
A firm's \cost function is given by C(Q) = 100 + 2Q. The firm's revenue function is given by R(Q) = 200Q. What is the firm's profit function?
A. ( pi(Q) = 200Q - 100 - 2Q )
B. ( pi(Q) = 200Q - 100 + 2Q )
C. ( pi(Q) = 200Q + 100 - 2Q )
D. ( pi(Q) = 200Q + 100 + 2Q )
Question 5
The government of Nigeria has introduced a tax on sugar to reduce consumption. What is the effect of this tax on the supply of sugar?
A. The supply of sugar decreases.
B. The supply of sugar increases.
C. The supply of sugar remains the same.
D. The supply of sugar increases and the price of sugar decreases.
Question 6
A country's GDP is ₦100 billion. Its GNP is ₦120 billion. What is the net factor income from abroad?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 7
A country's balance of payments is given by the equation BOP = X - M, where X is the value of exports and M is the value of imports. If the value of exports is ₦100 billion and the value of imports is ₦120 billion, what is the balance of payments?
A. ₦20 billion surplus
B. ₦20 billion deficit
C. ₦40 billion surplus
D. ₦40 billion deficit
Question 8
A firm is producing at the point where P = MC. If the price elasticity of demand is -2 and the firm increases its price by 10%, what is the change in total revenue?
A. ₦2500
B. -₦2500
C. ₦5000
D. -₦5000
Question 9
The scarcity of land in Nigeria has led to an increase in the price of agricultural land. This has resulted in a decrease in the supply of agricultural products. What is the opportunity \cost of this decrease in supply?
A. The opportunity \cost is the decrease in the supply of agricultural products.
B. The opportunity \cost is the increase in the price of agricultural land.
C. The opportunity \cost is the decrease in the supply of agricultural products and the increase in the price of agricultural land.
D. The opportunity \cost is the increase in the supply of agricultural products.
Question 10
A monopolist produces a good with a marginal \cost of ₦10 and a price of ₦20. What is the profit-maximizing quantity of the good?
A. 10
B. 20
C. 30
D. 40
Question 11
A country's GDP is calculated as the sum of the value of all final goods and services produced within its borders. However, if a foreign company produces goods within the country, but the goods are not sold within the country, how would this affect the country's GDP?
A. The country's GDP would increase by the value of the goods produced.
B. The country's GDP would decrease by the value of the goods produced.
C. The country's GDP would remain unchanged.
D. The country's GDP would increase by the value of the goods sold within the country.
Question 12
A firm's production function is given by Q = 2L^0.5K^0.5. 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 13
A country's GDP is given by GDP = C + I + G + \( X - M \). If the country's consumption is ₦100 billion, investment is ₦20 billion, government sp\ending is ₦30 billion, exports are ₦50 billion, and imports are ₦20 billion, what is the country's GDP?
A. ₦200 billion
B. ₦250 billion
C. ₦300 billion
D. ₦350 billion
Question 14
A consumer has a budget constraint of ₦100. The price of good X is ₦20 and the price of good Y is ₦30. The consumer's indifference curve is given by U = 2X + 3Y. What is the consumer's optimal consumption bundle?
A. X = 2, Y = 1
B. X = 3, Y = 2
C. X = 4, Y = 3
D. X = 5, Y = 4
Question 15
A consumer has a utility function U(x,y) = 2x + 3y, where x and y are the quantities of two goods. If the prices of the goods are ₦5 and ₦10 respectively, and the consumer has a budget of ₦50, what is the optimal combination of x and y?
A. x = 5 units, y = 2 units
B. x = 10 units, y = 1 unit
C. x = 15 units, y = 0 units
D. x = 0 units, y = 5 units

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