POST UTME CALEB UNIVERSITY 2023 Commerce | 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, where Q is the quantity produced, L is labor, and K is capital. If the firm wants to produce 100 units of output, how much labor should it hire if it has 16 units of capital?
A. 8 units of labor
B. 16 units of labor
C. 32 units of labor
D. 64 units of labor
Question 2
A sole trader has been operating a business for several years. The business has been profitable, but the sole trader has not been paying taxes on the profits. What is the likely consequence of the sole trader's actions?
A. The sole trader will be required to pay a penalty of ₦100,000
B. The sole trader will be required to pay back taxes and interest
C. The sole trader will be required to pay a fine of ₦500,000
D. The sole trader will be required to pay a fine of ₦1,000,000
Question 3
A sole trader's business is considered a separate legal entity from its owner. However, the owner's personal assets are not protected in case of business liabilities. What is the name of this business structure?
A. Sole Trader
B. Partnership
C. Limited Liability Company
D. Cooperative
Question 4
A company imports goods worth ₦5,000,000. If the exchange rate is ₦450 per US dollar, what is the value of the goods in US dollars?
A. 11,111.11
B. 11,111.12
C. 11,111.13
D. 11,111.14
Question 5
A firm's break-even point is ₦1,200,000. If the selling price is ₦2,500 and the variable cost is ₦1,000, what is the contribution margin ratio?
A. 0.6
B. 0.7
C. 0.8
D. 0.9
Question 6
A sole trader, Mr. A, has a business that generates an average profit of ₦1,500 per day. If he operates for 300 days in a year, what is his total profit for the year?
A. ₦450,000
B. ₦450,000
C. ₦450,000
D. ₦450,000
Question 7
A sole trader's business is registered under which of the following?
A. Partnership
B. Limited Liability Company
C. Sole Proprietorship
D. Cooperative Society
Question 8
A firm's revenue function is given by R = 100Q - 2Q^2, where R is the total revenue and Q is the quantity sold. If the firm sells 20 units, what is the total revenue?
A. 1200
B. 1500
C. 1800
D. 2000
Question 9
A country's inflation rate is given by the equation IR = (P1 - P0) / P0, where IR is the inflation rate, P1 is the current price level, and P0 is the previous price level. If the current price level is 120 and the previous price level was 100, what is the inflation rate?
A. 0.2
B. 0.4
C. 0.6
D. 0.8
Question 10
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is the quantity produced, L is the number of labor units, and H is the number of capital units. If the firm wants to increase its output by 20% while keeping labor units constant, how many capital units should it hire?
A. 4L
B. 2L
C. L
D. 0.5L
Question 11
A consumer protection agency has identified a company that has been engaging in unfair business practices. The agency has the power to impose a fine of up to ₦5 million on the company. If the company has a net worth of ₦10 million, what is the maximum percentage of its net worth that the fine represents?
A. 50%
B. 50%
C. 50%
D. 50%
Question 12
A company's production process involves the use of a machine that has a 10% chance of breaking down. If the machine breaks down, the production process is halted for 2 hours. What is the expected value of the time lost due to machine breakdowns per day?
A. 0.2 hours
B. 0.4 hours
C. 0.6 hours
D. 0.8 hours
Question 13
A risk management strategy involves diversifying investments across different asset classes. What is the primary benefit of this approach?
A. To increase potential returns
B. To reduce potential losses
C. To improve liquidity
D. To enhance creditworthiness
Question 14
A country's trade balance is given by the equation TB = X - M, where TB is the trade balance, X is exports, and M is imports. If the country's exports are 100 billion naira and its imports are 80 billion naira, what is the trade balance?
A. 10 billion naira
B. 20 billion naira
C. 30 billion naira
D. 40 billion naira
Question 15
The concept of comparative advantage in international trade suggests that countries should specialize in producing goods for which they have a lower opportunity cost. What is the opportunity cost of producing a good?
A. The value of the good in terms of other goods that could be produced instead
B. The cost of producing the good in terms of labor and resources
C. The price of the good in the international market
D. The quantity of the good produced

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