POST UTME LASU 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's budget constraint is given by P1x + P2y = I, where x and y are the quantities of two goods, P1 and P2 are their prices, and I is the consumer's income. If the price of good 1 increases by 15% and the consumer's income increases by 10%, what is the new budget constraint equation?
A. P1x + P2y = 1.15I
B. P1x + P2y = 1.10I
C. P1x + P2y = 1.15(1.10I)
D. P1x + P2y = 1.10(1.15I)
Question 2
In a perfectly competitive market, the demand curve for a firm's product is its marginal revenue curve. What is the implication of this for the firm's profit-maximizing output level?
A. The firm will produce at the minimum point of its average total cost curve.
B. The firm will produce at the point where its marginal revenue equals its marginal cost.
C. The firm will produce at the maximum point of its average revenue curve.
D. The firm will produce at the minimum point of its average revenue curve.
Question 3
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's revenue function is given by R = PQ, what is the firm's marginal revenue function?
A. MR = 100 - 2P
B. MR = 2P
C. MR = 100 + 2P
D. MR = 100 - P
Question 4
A firm's cost function is given by C(L,K) = 2L + 3K. If the firm's current labor and capital inputs are L = 10 and K = 5, what is the firm's current total cost?
A. 50
B. 60
C. 70
D. 80
Question 5
A company has a warehouse with a capacity of 10,000 units. The company receives an order for 5,000 units and immediately ships out 3,000 units. What is the new inventory level?
A. 7,000
B. 8,000
C. 9,000
D. 10,000
Question 6
The following is a characteristic of a private limited company:
A. Unlimited liability
B. Limited liability
C. Partnership
D. Public limited company
Question 7
A company'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 company wants to increase its production by 20% while keeping labor input constant, what percentage increase in capital input is required?
A. 16%
B. 20%
C. 24%
D. 28%
Question 8
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's revenue function is given by R = PQ, what is the firm's marginal revenue function?
A. MR = 100 - 2P
B. MR = 2P
C. MR = 100 + 2P
D. MR = 100 - P
Question 9
The following is a characteristic of a sole trader's business:
A. Limited liability
B. Unlimited liability
C. Partnership
D. Private limited company
Question 10
A firm's production function is given by Q = 2L^0.5 + 3K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, what is the firm's current output?
A. 20
B. 25
C. 30
D. 35
Question 11
A consumer's indifference curve is given by U = 2x + 3y, where x and y are the quantities of two goods and U is the consumer's utility. If the consumer's budget constraint is given by P1x + P2y = I, what is the consumer's optimal consumption bundle?
A. (x, y) = (10, 5)
B. (x, y) = (5, 10)
C. (x, y) = (15, 3)
D. (x, y) = (3, 15)
Question 12
A firm's production function is given by (Q = 2L^2 + 3K), where Q is the quantity produced and L and K are the units of labor and capital respectively. If the firm's current level of labor is 5 units and capital is 10 units, what is the firm's current level of production?
A. 20
B. 30
C. 40
D. 50
Question 13
A company purchases an insurance policy with a premium of ₦100,000. The policy has a deductible of ₦20,000 and a coverage limit of ₦500,000. If the company incurs a loss of ₦300,000, what is the insurer's liability?
A. ₦380,000
B. ₦380,000
C. ₦380,000
D. ₦380,000
Question 14
A company is considering the use of a foreign trade agreement. Which of the following is a key benefit of such an agreement?
A. Increased market share
B. Improved product quality
C. Reduced tariffs
D. Enhanced customer satisfaction
Question 15
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 5%
B. 10%
C. 15%
D. 20%

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