POST UTME LEAD CITY UNIVERSITY 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's transportation costs are given by the equation C(x) = 0.05x^2 + 10x. If the company transports 50 units of goods, what is the total transportation cost?
A. ₦2,500
B. ₦2,750
C. ₦3,000
D. ₦3,250
Question 2
A firm's introduction to commerce is most likely to be influenced by its
A. production costs
B. market demand
C. firm's size
D. government regulations
Question 3
In a sole trader business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Unlimited liability
C. Easy to set up
D. Tax benefits
Question 4
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, how many units of labor (L) and capital (K) should it hire?
A. L = 4, K = 4
B. L = 8, K = 2
C. L = 2, K = 8
D. L = 1, K = 16
Question 5
A firm has a warehouse with a capacity of 1000 units. The firm receives a shipment of 500 units of a commodity. The firm wants to store the commodity in the warehouse. What is the maximum number of units that can be stored in the warehouse?
A. 500
B. 750
C. 1000
D. 1250
Question 6
A firm is considering a new production process that will reduce its costs by 10%. However, the new process will also increase its variable costs by 15%. What will be the effect on the firm's profit?
A. Profit will increase by 5%
B. Profit will decrease by 5%
C. Profit will remain unchanged
D. Profit will increase by 10%
Question 7
A company's foreign trade policy is most likely to be influenced by its
A. domestic market
B. government regulations
C. international trade agreements
D. firm's size
Question 8
A firm is considering a new production process that will increase its output by 25%. However, the new process will also increase its variable costs by 30%. What will be the effect on the firm's profit?
A. Profit will increase by 15%
B. Profit will decrease by 15%
C. Profit will remain unchanged
D. Profit will increase by 20%
Question 9
A company is considering a new marketing strategy that will increase its sales by 15%. However, the new strategy will also increase its costs by 20%. What will be the effect on the company's profit?
A. Profit will increase by 5%
B. Profit will decrease by 5%
C. Profit will remain unchanged
D. Profit will increase by 10%
Question 10
In a perfectly competitive market, the supply curve is determined by the marginal cost curve. What is the relationship between the marginal cost curve and the supply curve?
A. The marginal cost curve is always above the supply curve.
B. The marginal cost curve is always below the supply curve.
C. The marginal cost curve is equal to the supply curve.
D. The marginal cost curve is parallel to the supply curve.
Question 11
A company has a capital of ₦1,000,000 and a reserve of ₦500,000. What is the total amount of capital and reserve?
A. \1,000,000
B. \1,500,000
C. \2,000,000
D. \2,500,000
Question 12
A firm's cost function is given by C = 2L + 3K. If the firm hires 4 units of labor and 6 units of capital, what is its total cost?
A. ₦30
B. ₦40
C. ₦50
D. ₦60
Question 13
A consumer protection agency has identified a company that has engaged in unfair business practices. What is the primary action the agency should take?
A. Issue a warning letter
B. File a lawsuit
C. Impose a fine
D. Order the company to cease operations
Question 14
A consumer has a budget of ₦10,000 and wants to buy two goods, X and Y. The prices of the goods are ₦5,000 and ₦3,000, respectively. If the consumer spends all the budget, what is the maximum amount that can be spent on good X?
A. ₦2,000
B. ₦3,000
C. ₦4,000
D. ₦5,000
Question 15
A company issues 10,000 shares of 1 par value at a premium of 2 per share. How much will the company receive from the sale of these shares?
A. \10,000,000
B. \20,000,000
C. \30,000,000
D. \40,000,000

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