POST UTME COVENANT UNIVERSITY 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's profit function is given by π(Q) = R(Q) - C(Q). If the firm's current revenue is R(Q) = 2Q^2 and current cost is C(Q) = 2Q^2 + 10Q, what is the firm's current profit?
A. ₦98
B. ₦128
C. ₦158
D. ₦198
Question 2
A bank's primary function is to act as a financial intermediary between savers and borrowers. What is the name of this financial service?
A. Deposit Taking
B. Credit Creation
C. Money Market Operations
D. Asset Management
Question 3
A bank's interest rate is 12% per annum. If a customer deposits ₦100,000 for 1 year, how much interest will the customer earn?
A. ₦12,000
B. ₦12,500
C. ₦13,000
D. ₦13,500
Question 4
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm increases its labor input from 100 to 121 units and its capital input from 100 to 121 units, by how many percentage points will its quantity produced increase?
A. 10%
B. 20%
C. 30%
D. 40%
Question 5
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm increases its price from ₦10 to ₦12, by how many units will its quantity demanded decrease?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 6
A firm has a production function Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the firm's current output?
A. 24
B. 32
C. 48
D. 64
Question 7
A company's cost function is given by C(Q) = 2Q^2 + 10Q. If the firm's current output is Q = 6, what is the firm's current cost?
A. ₦98
B. ₦128
C. ₦158
D. ₦198
Question 8
A sole trader's business is registered under which of the following?
A. Companies Act
B. Partnership Act
C. Business Names Act
D. Sole Trader Act
Question 9
A consumer protection agency is established to protect consumers from unfair business practices. Which of the following is a key function of this agency?
A. To promote fair competition among businesses
B. To educate consumers about their rights
C. To investigate complaints from consumers
D. To impose fines on businesses that engage in unfair practices
Question 10
A consumer's utility function is given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's income is ₦100 and the prices of the two goods are ₦5 and ₦10 respectively, how much of good x should the consumer consume to maximize utility?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 11
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm increases its labor input from 100 to 121 units and its capital input from 100 to 121 units, by how many percentage points will its quantity produced increase?
A. 10%
B. 20%
C. 30%
D. 40%
Question 12
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will
A. increase
B. decrease
C. remain constant
D. increase then decrease
Question 13
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the firm's current output?
A. 24
B. 32
C. 48
D. 64
Question 14
A company's shareholders have the right to appoint and remove directors. However, the directors have the power to manage the company's business and affairs. What is the name of this corporate governance structure?
A. Unitary Board
B. Pluralistic Board
C. Executive Board
D. Supervisory Board
Question 15
A sole trader is a type of business organization that is owned and operated by a single individual. What is the primary advantage of this type of business?
A. Increased flexibility due to single decision-maker
B. Reduced costs due to no need for formal management structure
C. Improved product quality due to focus on a single product
D. Enhanced customer satisfaction due to tailored products

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