POST UTME AAUA 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm has a budget constraint of ₦100000, and wants to maximize its profit. If the price of good X is ₦200, and the price of good Y is ₦300, and the firm produces 20 units of good X and 10 units of good Y, what is the maximum profit?
A. ₦20000
B. ₦25000
C. ₦30000
D. ₦35000
Question 2
A bank has a loan of ₦500,000 with an interest rate of 10% per annum. If the loan is for 5 years, what is the total amount that the bank will pay at the end of the loan period?
A. ₦750,000
B. ₦800,000
C. ₦850,000
D. ₦900,000
Question 3
A company's income statement shows net income of ₦200,000 and dividends of ₦100,000. What is the company's retained earnings?
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 4
A company is considering two marketing strategies: a traditional advertising campaign or a social media campaign. The traditional advertising campaign is expected to reach 10,000 people at a cost of ₦1 million, while the social media campaign is expected to reach 50,000 people at a cost of ₦500,000. Which marketing strategy is more cost-effective?
A. Traditional advertising campaign
B. Social media campaign
C. Both strategies are equally cost-effective
D. Neither strategy is cost-effective
Question 5
A sole trader has a business that generates ₦1,000,000 in revenue and ₦800,000 in expenses. If the sole trader's capital is ₦200,000, what is the amount of profit that the sole trader should declare for tax purposes?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 6
A consumer purchases a product with a 2-year warranty. The product fails after 18 months. What is the consumer's likely course of action?
A. Return the product for a full refund
B. Seek compensation for the cost of repairs
C. Contact the manufacturer for a replacement
D. Take the product to a repair shop
Question 7
A company's production function is given by the equation Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the number of labor hours, and K is the capital invested. If the company wants to increase its production by 20% while keeping labor hours constant at 100, how much capital should it invest?
A. ₦1250
B. ₦1500
C. ₦1750
D. ₦2000
Question 8
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, what is the minimum cost of production?
A. ₦4000
B. ₦8000
C. ₦12000
D. ₦16000
Question 9
A company has a warehouse with a capacity of 10,000 units. If the company receives 5,000 units of a product, what is the maximum amount of space that the company can allocate to the product?
A. 5,000 units
B. 6,000 units
C. 7,000 units
D. 8,000 units
Question 10
A company has a production line that produces 500 units of a product per day. If the company operates for 20 days, what is the total number of units produced?
A. 10,000 units
B. 12,000 units
C. 15,000 units
D. 18,000 units
Question 11
A company is considering launching a new product in a market with a high level of competition. The company has a market share of 20% and is considering increasing its market share to 30%. Using the Porter's Five Forces framework, what is the likely impact on the company's profitability?
A. Profitability will increase
B. Profitability will decrease
C. Profitability will remain the same
D. Insufficient information to determine the impact
Question 12
The Central Bank of Nigeria (CBN) uses the monetary policy instrument of Open Market Operations (OMO) to influence the money supply in the economy. Which of the following is a correct statement about OMO?
A. OMO involves the sale of government securities by the CBN to commercial banks.
B. OMO involves the purchase of government securities by the CBN from commercial banks.
C. OMO involves the sale of government securities by the CBN to the general public.
D. OMO involves the purchase of government securities by the CBN from the general public.
Question 13
A company has a policy of paying its employees a 10% bonus on their annual salary. If an employee's annual salary is ₦200,000, what is the bonus amount?
A. ₦20,000
B. ₦22,000
C. ₦24,000
D. ₦26,000
Question 14
A firm produces two products, X and Y, using two inputs, labor (L) and capital (K). The production function for product X is given by Q_X = 2L^0.5K^0.5, while the production function for product Y is given by Q_Y = 3L^0.25K^0.75. If the firm has 100 units of labor and 200 units of capital, what is the total output of the firm?
A. 300
B. 400
C. 500
D. 600
Question 15
A firm is considering investing in a new project with a net present value (NPV) of ₦100,000. The cost of capital is 10%. What is the internal rate of return (IRR) of the project?
A. 10%
B. 12%
C. 15%
D. 18%

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