POST UTME CALEB UNIVERSITY 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A sole trader has a business income of ₦2,000,000 and a business expense of ₦800,000. If the sole trader has a personal income of ₦1,000,000, what is the sole trader's total income for the year?
A. ₦2,800,000
B. ₦3,000,000
C. ₦2,200,000
D. ₦1,200,000
Question 2
A bank has a reserve requirement of 10% and a cash reserve of ₦1,000,000. If the bank has a deposit of ₦10,000,000, what is the maximum amount of loans the bank can make?
A. ₦8,000,000
B. ₦9,000,000
C. ₦10,000,000
D. ₦11,000,000
Question 3
A warehouse is a type of storage facility used to store goods. What is the main purpose of a warehouse?
A. To sell goods
B. To produce goods
C. To store goods
D. To transport goods
Question 4
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are 4 and 9 respectively, what is the level of output?
A. 8
B. 16
C. 32
D. 64
Question 5
A company has a policy of paying its suppliers within 30 days of receiving the invoice. If the company receives an invoice on January 1st and pays it on January 15th, what is the opportunity cost of this policy?
A. 0
B. 1000
C. 5000
D. 10000
Question 6
The diagram below represents a firm's marginal cost and marginal revenue curves. What is the profit-maximizing output level?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 7
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is P = 20, what is the firm's current quantity demanded?
A. 40
B. 60
C. 80
D. 100
Question 8
A consumer's budget constraint is given by 2X + 3Y = 12. If the consumer's income is 12 and the price of good X is 2, what is the optimal level of good Y?
A. 2
B. 4
C. 6
D. 8
Question 9
A firm's revenue is maximized when the marginal revenue equals the
A. marginal cost
B. marginal product
C. marginal utility
D. marginal propensity to consume
Question 10
A consumer's indifference curve is given by U = 2X + 3Y. If the consumer's income is 12 and the price of good X is 2, what is the optimal level of good Y?
A. 2
B. 4
C. 6
D. 8
Question 11
The concept of opportunity cost is relevant in the context of
A. production decisions
B. consumption decisions
C. investment decisions
D. all of the above
Question 12
A sole trader has an annual turnover of ₦2,000,000. If the company's tax rate is 25%, what is the amount of tax payable?
A. ₦500,000
B. ₦500,000
C. ₦500,000
D. ₦500,000
Question 13
A company has a transportation cost of ₦500,000 and a communication cost of ₦300,000. If the company has a total cost of ₦1,200,000, what is the percentage of the total cost that is attributed to transportation?
A. 20%
B. 25%
C. 30%
D. 35%
Question 14
A firm's demand curve is downward-sloping, indicating that as the price of a good decreases, the quantity demanded increases. Which of the following is a correct explanation for this phenomenon?
A. The firm is a price-taker and has no control over the price of the good.
B. The firm is a price-maker and has control over the price of the good.
C. The firm is a monopolist and has a downward-sloping demand curve.
D. The firm is a competitive firm and has a downward-sloping supply curve.
Question 15
A company's foreign trade involves exporting goods worth ₦10,000,000 to a foreign country. If the company's profit margin is 20%, what is the amount of profit made?
A. ₦2,000,000
B. ₦2,000,000
C. ₦2,000,000
D. ₦2,000,000

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