POST UTME LASU 2019 Commerce | Objective

Are you preparing for POST UTME LASU exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is labor, and K is capital. If the company wants to increase its production by 20%, what percentage increase in labor and capital is required?
A. 10% increase in labor and 10% increase in capital
Correct B. 20% increase in labor and 20% increase in capital
C. 15% increase in labor and 15% increase in capital
D. 25% increase in labor and 25% increase in capital

Correct Answer: B

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Question 2
A firm's revenue function is given by R(x) = 2x^2 + 10x, where x is the number of units sold. If the firm wants to maximize its revenue, what is the optimal number of units to sell?
A. 5 units
Correct B. 10 units
C. 15 units
D. 20 units

Correct Answer: B

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Question 3
A company has a warehouse with a capacity of 1000 units. The company receives a shipment of 500 units and then sells 200 units. If the company wants to maximize its storage capacity, what is the maximum number of units it can store?
A. 300 units
B. 400 units
Correct C. 500 units
D. 600 units

Correct Answer: C

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Question 4
A firm's cost function is given by C(x) = 2x^2 + 10x, where x is the number of units produced. If the firm produces 10 units, what is the total cost?
A. 100
B. 200
Correct C. 300
D. 400

Correct Answer: C

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Question 5
A company has a sole proprietorship business. If the company's assets are worth ₦100,000 and its liabilities are ₦50,000, what is the company's equity?
A. ₦50,000
Correct B. ₦75,000
C. ₦100,000
D. ₦125,000

Correct Answer: B

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Question 6
A bank's return on assets (ROA) is 0.15. If the bank has total assets of ₦120 billion, what is its net income?
Correct A. ₦18 billion
B. ₦20 billion
C. ₦22 billion
D. ₦25 billion

Correct Answer: A

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Question 7
A company's marketing mix is a combination of product, price, place, and promotion. Which of the following is NOT part of the marketing mix?
A. Product
B. Price
C. Place
Correct D. Research and Development

Correct Answer: D

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Question 8
A firm's cost of capital is 10%. If it invests ₦100 million in a project with a 5-year life, what is the present value of the project?
Correct A. ₦80 million
B. ₦90 million
C. ₦95 million
D. ₦100 million

Correct Answer: A

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Question 9
A company's supply chain involves the transportation of goods from the factory to the warehouse. Which of the following is a type of transportation mode?
A. Air
Correct B. Land
C. Sea
D. Rail

Correct Answer: B

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Question 10
A firm's insurance policy has a deductible of ₦50,000. If it files a claim of ₦100,000, what is the amount the firm will receive?
A. ₦50,000
Correct B. ₦75,000
C. ₦90,000
D. ₦100,000

Correct Answer: B

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Question 11
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost. What is the opportunity cost of producing a good?
Correct A. The cost of producing the good in terms of other goods that could be produced instead
B. The cost of producing the good in terms of labor hours
C. The cost of producing the good in terms of capital investment
D. The cost of producing the good in terms of raw materials

Correct Answer: A

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Question 12
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 16 units of output, how many units of labor are required if capital is fixed at 4 units?
A. 4
Correct B. 8
C. 16
D. 32

Correct Answer: B

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Question 13
A bank's balance sheet is given by Assets = Liabilities + Equity. If the bank's assets are worth ₦100 million and its liabilities are ₦80 million, what is the value of its equity?
A. ₦10 million
B. ₦20 million
Correct C. ₦30 million
D. ₦40 million

Correct Answer: C

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Question 14
A firm's cost function is given by C = 2L + 3K, where C is the total cost, L is labor and K is capital. If the firm hires 4 units of labor and 2 units of capital, what is the total cost?
A. ₦20
B. ₦30
Correct C. ₦40
D. ₦50

Correct Answer: C

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Question 15
A country's trade balance is given by TB = X - M, where TB is the trade balance, X is exports and M is imports. If the country's exports are ₦100 million and its imports are ₦80 million, what is the trade balance?
A. ₦10 million
B. ₦20 million
Correct C. ₦30 million
D. ₦40 million

Correct Answer: C

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Question 16
In a sole proprietorship, the owner's personal assets are not protected from business liabilities. What is the term for this lack of separation?
A. Limited Liability
B. Separate Entity
Correct C. Unlimited Liability
D. Partnership

Correct Answer: C

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Question 17
A company's marketing strategy involves creating a unique selling proposition (USP) to differentiate its product from competitors. What is the primary goal of this strategy?
A. Increase market share
B. Reduce production costs
Correct C. Differentiate the product
D. Improve customer service

Correct Answer: C

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Question 18
A bank's primary function is to act as a financial intermediary between savers and borrowers. What is the term for the interest rate at which a bank borrows money from depositors?
A. Deposit Rate
B. Lending Rate
C. Reserve Requirement
Correct D. Discount Rate

Correct Answer: D

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Question 19
A production process involves the transformation of raw materials into finished goods. What is the term for the ratio of output to input in this process?
A. Efficiency Ratio
Correct B. Productivity Ratio
C. Output Ratio
D. Input Ratio

Correct Answer: B

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Question 20
An insurance policy provides financial protection against risks such as death, disability, or property damage. What is the term for the amount of money paid by the policyholder to purchase the policy?
Correct A. Premium
B. Deductible
C. Coverage
D. Policy Limit

Correct Answer: A

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Question 21
A company's production function is given by Q = 100L^0.5K^0.25, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company 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. 15%
Correct C. 20%
D. 25%

Correct Answer: C

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Question 22
A firm's revenue function is given by R(x) = 100x - 2x^2, where x is the number of units sold. If the firm sells 10 units, what is its marginal revenue?
A. 80
B. 90
Correct C. 100
D. 110

Correct Answer: C

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Question 23
A company's cost function is given by C(x) = 50x + 2x^2, where x is the number of units produced. If the company produces 5 units, what is its total cost?
A. 250
B. 300
Correct C. 350
D. 400

Correct Answer: C

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Question 24
A firm's demand function is given by p(x) = 100 - 2x, where p is the price per unit and x is the number of units sold. If the firm sells 5 units, what is the total revenue?
A. 375
B. 425
Correct C. 475
D. 525

Correct Answer: C

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Question 25
A company's production function is given by Q = 100L^0.5K^0.25, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company 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. 15%
Correct C. 20%
D. 25%

Correct Answer: C

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