POST UTME NOUN 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm wants to increase output by 20% while keeping labor constant at 100 units, how much capital should it hire?
A. 150
B. 200
C. 250
D. 300
Question 2
In a perfectly competitive market, firms produce at the point where their marginal cost equals their marginal revenue. What is the implication of this for the firm's profit-maximizing output?
A. The firm will produce at a level where its average cost is minimized.
B. The firm will produce at a level where its marginal cost equals its average revenue.
C. The firm will produce at a level where its marginal cost equals its marginal revenue.
D. The firm will produce at a level where its average revenue is maximized.
Question 3
The following diagram shows a production possibility frontier for a country with two goods, X and Y. If the country is currently producing at point A, and the government imposes a tax on good X, what will be the effect on the production of good Y?
A. The production of good Y will increase.
B. The production of good Y will decrease.
C. The production of good Y will remain unchanged.
D. The production of good Y will increase, but at a decreasing rate.
Question 4
A company is considering investing in a new market. Which of the following is a key factor in determining the market's attractiveness?
A. Market size and growth potential
B. Competitor analysis
C. Cultural and language differences
D. Taxes and tariffs
Question 5
A company is considering the introduction of a new product line. The product line will require an initial investment of ₦5 million and will generate annual profits of ₦1.5 million for the next 5 years. What is the net present value (NPV) of the product line, assuming a discount rate of 10%?
A. ₦2,500
B. ₦3,000
C. ₦3,500
D. ₦4,000
Question 6
A company 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. If the company increases the number of labor hours from 100 to 200, and the amount of capital from 100 to 200, what is the percentage change in the quantity produced?
A. 25%
B. 50%
C. 100%
D. 200%
Question 7
A company is considering two different marketing strategies for its new product. Strategy A involves a high level of advertising and promotion, while Strategy B involves a low level of advertising and promotion. Which strategy is more likely to result in a higher return on investment (ROI)?
A. Strategy A
B. Strategy B
C. Both strategies are equally likely to result in a higher ROI.
D. There is not enough information to determine which strategy is more likely to result in a higher ROI.
Question 8
A bank offers a 5-year fixed deposit account with an interest rate of 8% per annum compounded annually. If the principal amount is ₦100,000, what is the future value of the investment?
A. ₦163,918.19
B. ₦164,918.19
C. ₦165,918.19
D. ₦166,918.19
Question 9
A consumer has a budget constraint given by ( 2x + 3y = 12 ), where ( x ) and ( y ) are the quantities of two goods. If the consumer wants to maximize utility, which of the following is a necessary condition?
A. The consumer must spend all of their income.
B. The consumer must allocate their income between the two goods in a way that maximizes utility.
C. The consumer must allocate their income between the two goods in a way that minimizes cost.
D. The consumer must allocate their income between the two goods in a way that maximizes profit.
Question 10
A firm's revenue function is given by R = 2L^0.5H^0.5, where R is revenue, L is labor, and H is capital. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in revenue?
A. 5%
B. 10%
C. 15%
D. 20%
Question 11
In a sole trade business, what is the primary advantage of using a cash register?
A. Improved record-keeping
B. Enhanced customer service
C. Increased sales
D. Reduced inventory costs
Question 12
A country has a trade deficit of 100 million and a GDP of 1 billion. What is the country's trade deficit as a percentage of its GDP?
A. 0.01%
B. 0.1%
C. 1%
D. 10%
Question 13
A company has a probability distribution of returns given by ( P(X = 1) = 0.2 ), ( P(X = 2) = 0.3 ), and ( P(X = 3) = 0.5 ). What is the expected value of the distribution?
A. 1.5
B. 2.0
C. 2.5
D. 3.0
Question 14
A consumer is considering purchasing a product from a foreign seller. Which of the following is a key consideration in the decision-making process?
A. Product quality and features
B. Price and shipping costs
C. Cultural and language differences
D. Taxes and tariffs
Question 15
A consumer purchases a product online and receives a defective item. Which of the following is the consumer's primary course of action?
A. Return the product and request a refund
B. Contact the seller and request a replacement
C. File a complaint with the consumer protection agency
D. Take the seller to court

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: