POST UTME CRAWFORD UNIVERSITY 2023 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm has 4 units of labor and 9 units of capital, what is the maximum output?
A. 12
B. 15
C. 18
D. 20
Question 2
A central bank increases the reserve requirement for commercial banks. What is the likely effect on the money supply?
A. Increase
B. Decrease
C. No change
D. Uncertain
Question 3
A firm's revenue function is given by R(P) = 100P - 2P^2. If the firm produces 20 units, what is the marginal revenue?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 4
The government of Nigeria has implemented a policy to increase agricultural production. The policy includes providing subsidies to farmers and investing in irrigation systems. What is the likely effect of this policy on the agricultural sector?
A. A decrease in agricultural production
B. An increase in agricultural production
C. No change in agricultural production
D. A decrease in agricultural prices
Question 5
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. If the monopolist produces 20 units, what is the profit-maximizing price?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 6
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 the firm's output?
A. 10%
B. 15%
C. 20%
D. 25%
Question 7
A perfectly competitive market has the following characteristics: (i) A large number of firms producing a homogeneous product, (ii) Free entry and exit, (iii) Perfect knowledge of market conditions, and (iv) No \single firm can influence the market price. Which of the following is NOT a characteristic of a perfectly competitive market?
A. Firms have complete control over the market price
B. Firms can influence the market price
C. Firms have complete knowledge of market conditions
D. Firms can exit the market freely
Question 8
A country's balance of payments is given by the following equation: BOP = \( X - M \) + \( F - I \). If the country's exports are $100 billion, imports are $80 billion, foreign investment is $20 billion, and domestic investment is $30 billion, what is the balance of payments?
A. $10 billion
B. $20 billion
C. $30 billion
D. $40 billion
Question 9
A consumer's budget constraint is given by 2x + 3y = 100. If the consumer's utility function is U(x, y) = 2x + 3y and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of x and y?
A. x = 20, y = 10
B. x = 15, y = 5
C. x = 10, y = 20
D. x = 5, y = 15
Question 10
A firm's production function is given by Q = 2L^\( 1/2 \)K^\( 1/2 \). If the firm's current input levels are L = 16 and K = 9, what is the marginal product of labor?
A. 1/4
B. 1/2
C. 1
D. 2
Question 11
A consumer's budget constraint is given by 2x + 3y = 12. If the consumer's current consumption bundle is (x, y) = (3, 2), what is the consumer's marginal rate of substitution?
A. 1/2
B. 1
C. 2
D. 4
Question 12
A country's GDP is ₦1,500 billion. If the country's population is 200 million, what is the per capita GDP?
A. ₦7,500
B. ₦7,500
C. ₦7,500
D. ₦7,500
Question 13
A consumer's indifference curve is downward sloping and convex to the origin. What is the implication of this shape?
A. The consumer is risk-averse.
B. The consumer is risk-neutral.
C. The consumer is risk-loving.
D. The consumer is indifferent to risk.
Question 14
A firm's demand curve is given by Q = 100 - 2P. The firm's marginal \cost is MC = 10. What is the profit-maximizing price and quantity?
A. P = 40, Q = 30
B. P = 50, Q = 20
C. P = 60, Q = 10
D. P = 70, Q = 0
Question 15
A consumer's utility function is given by U(x, y) = 2x + 3y. The consumer's budget constraint is 2x + 3y = 12. What is the consumer's optimal bundle of x and y?
A. x = 2, y = 4
B. x = 3, y = 3
C. x = 4, y = 2
D. x = 5, y = 1

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