POST UTME CRAWFORD UNIVERSITY 2024 Economics | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm is faced with a production function given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm wants to produce an output of 16 units, and the wage rate is ₦100 per unit of labor, and the rental rate of capital is ₦200 per unit of capital, what is the optimal combination of labor and capital?
Question 2
A country has a tax rate of 20% and a government exp\enditure of ₦500 billion. What is the budget balance?
Question 3
A firm has a demand function Q = 100 - 2P. If the price is ₦50, what is the quantity demanded?
Question 4
A firm produces a product with a total revenue of ₦1000 and a total \cost of ₦800. If the firm's marginal revenue is ₦20 and its marginal \cost is ₦15, what is the firm's profit-maximizing quantity of output?
Question 5
A consumer has an indifference curve given by the equation U = 2x^0.5y^0.5, where x is the quantity of good A and y is the quantity of good B. If the consumer's income is ₦1000 and the prices of good A and good B are ₦5 and ₦10 respectively, what is the consumer's optimal bundle of goods?
Question 6
The Central Bank of Nigeria (CBN) has implemented a monetary policy to reduce inflation. The policy involves a decrease in the money supply by 5%. If the demand for money is given by M = 1000 + 0.5Y, where Y is the national income, what is the effect of the policy on the interest rate?
Question 7
A firm has a production function given by Q = 2L + 3K, where L is labor and K is capital. If the firm has 10 units of labor and 5 units of capital, what is the total output?
Question 8
Agricultural production in Nigeria is characterized by a high degree of seasonality. If the demand for agricultural products is given by Q = 1000 + 0.5P, where P is the price, and the supply of agricultural products is given by Q = 500 + 0.2P, what is the price elasticity of demand?
Question 9
A firm has a production function Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, what is the optimal combination of labor and capital?
Question 10
The following diagram shows the demand and supply curves for a particular good. If the price of the good is currently ₦100, and if the quantity demanded is 10 units, then the quantity supplied is
Question 11
A monopolist faces a market demand curve given by Q = 100 - 2P and a marginal revenue function MR = 50 - 2Q. Find the profit-maximizing quantity and price.
Question 12
A firm produces two goods, A and B, u\sing two inputs, labor and capital. The production function for good A is Q_A = 2L^0.5K^0.5, and the production function for good B is Q_B = 3L^0.7K^0.3. If the firm allocates 100 units of labor and 50 units of capital, what is the marginal rate of technical substitution (MRTS) of labor for good A with respect to good B?
Question 13
A firm is faced with a budget constraint given by 2L + 3K = 12, where L is the labor, and K is the capital. If the firm wants to maximize its profit, which of the following combinations of labor and capital would be most profitable?
Question 14
A government imposes a tax on a firm's output. The firm's supply curve is given by Q = 100 + 2P. If the tax rate is 10%, what is the new supply curve?
Question 15
A country's GDP grows at an annual rate of 5% while its population increases at a rate of 2.5%. What is the rate of growth of per capita GDP?
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