POST UTME LAUTECH 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm has a production function given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the number of labor hours, and K is the amount of capital invested. If the firm wants to produce 100 units of output, how many labor hours are required if K = 400?
A. 100
B. 200
C. 400
D. 600
Question 2
A sole trader has an initial capital of ₦50,000. The trader invests an additional ₦20,000 and earns a profit of ₦15,000. What is the new capital of the sole trader?
A. ₦85,000
B. ₦90,000
C. ₦95,000
D. ₦100,000
Question 3
A company has a warehouse with a capacity of 1000 units. The warehouse is currently 75% full, and the company wants to increase its inventory by 20%. If the company wants to maintain a safety stock of 10% of the total capacity, how many units should it order?
A. 500
B. 750
C. 1000
D. 1250
Question 4
A firm has a risk management strategy that involves diversification. The firm invests in two assets, A and B. Asset A has a probability of 0.6 of returning 10% and a probability of 0.4 of returning 5%. Asset B has a probability of 0.7 of returning 8% and a probability of 0.3 of returning 12%. What is the expected return on investment for the firm?
A. 8%
B. 9%
C. 10%
D. 11%
Question 5
A company has a marketing budget of ₦1,000,000. The company allocates 30% of the budget to advertising and 20% to promotions. What is the amount allocated to advertising?
A. ₦300,000
B. ₦350,000
C. ₦400,000
D. ₦450,000
Question 6
A company has two production lines, A and B. Line A produces 100 units of a product per hour, while line B produces 80 units per hour. If the company operates for 8 hours a day, what is the total number of units produced by both lines in a 5-day workweek?
A. 4000
B. 4800
C. 5600
D. 6400
Question 7
A firm's revenue function is given by R(x) = 100x - 2x^2, where x is the number of units sold. If the firm wants to maximize its revenue, how many units should it produce?
A. 10
B. 20
C. 30
D. 40
Question 8
A company's production function is given by the equation Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the number of labor hours, and K is the amount of capital invested. If the company wants to produce 100 units of output, how many labor hours are required if K = 400?
A. 100
B. 200
C. 400
D. 600
Question 9
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. move in the opposite direction of the price change
Question 10
A firm has a warehouse with a capacity of 1000 units. The firm receives a shipment of 800 units and then sells 300 units. What is the new capacity of the warehouse?
A. 700
B. 800
C. 900
D. 1000

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