POST UTME OSUSTECH 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A bank's balance sheet is given by Assets = Liabilities + Equity. If the bank's assets are ₦1,000,000, and its liabilities are ₦800,000, what is the bank's equity?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 2
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 increases its labor input from 100 units to 121 units, and its capital input from 100 units to 121 units, by how many percentage points will the quantity produced increase?
A. 10%
B. 20%
C. 30%
D. 40%
Question 3
A consumer has a utility function given by U = 2X + 3Y, where X and Y are the quantities of two goods consumed. If the prices of X and Y are 5 and 10 units of currency, respectively, and the consumer's budget constraint is 100 units of currency, what is the optimal consumption bundle?
A. (20, 10)
B. (30, 5)
C. (40, 0)
D. (0, 50)
Question 4
A firm uses a total quality management (TQM) approach to improve its customer satisfaction. What is the primary tool used in TQM to identify and prioritize quality improvement projects?
A. Quality function deployment (QFD)
B. Failure mode and effects analysis (FMEA)
C. Six sigma methodology
D. Root cause analysis (RCA)
Question 5
A firm'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 firm increases its labor input from 100 units to 121 units, and its capital input from 100 units to 121 units, by how many percentage points will the quantity produced increase?
A. 10%
B. 20%
C. 30%
D. 40%
Question 6
A firm's supply curve is upward-sloping, indicating that as the price of the good increases, the quantity supplied also increases. What is the likely reason for this?
A. The firm is a price-taker
B. The firm is a price-maker
C. The firm has a fixed cost
D. The firm has a variable cost
Question 7
The concept of 'Gross Domestic Product' (GDP) is a measure of the total value of all final goods and services produced within a country's borders over a specific time period. Which of the following is NOT a component of GDP?
A. Imports
B. Exports
C. Investment
D. Government Consumption
Question 8
A firm is considering two different production processes to manufacture a product. Process A has a higher fixed cost but a lower variable cost per unit, while Process B has a lower fixed cost but a higher variable cost per unit. Which process should the firm choose if it expects to produce 10,000 units?
A. Process A, as it has a lower total cost.
B. Process B, as it has a lower fixed cost.
C. Process A, as it has a lower variable cost per unit.
D. Process B, as it has a lower total cost.
Question 9
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 marginal revenue function is MR = 200 - 4Q, what is the price elasticity of demand at a quantity of 50 units?
A. 1
B. 2
C. 3
D. 4
Question 10
A company's cost function is given by C = 100 + 2Q + 0.5Q^2, where C is the total cost and Q is the quantity produced. If the company produces 100 units, what is the total cost?
A. 1500
B. 2000
C. 2500
D. 3000
Question 11
In a perfectly competitive market, the supply curve is a straight line that intersects the demand curve at the equilibrium price and quantity. What is the name of this equilibrium price?
A. Equilibrium Price
B. Market Price
C. Supply Price
D. Demand Price
Question 12
A firm is considering exporting its product to a foreign market. The firm expects to earn a profit of ₦1,000,000 from the export, but it also expects to incur a transportation cost of ₦200,000. What is the firm's expected profit from the export?
A. ₦800,000
B. ₦900,000
C. ₦1,000,000
D. ₦1,200,000
Question 13
A company's cost function is given by C = 100 + 2Q + 0.5Q^2, where C is the total cost and Q is the quantity produced. If the company produces 100 units, what is the total cost?
A. 1500
B. 2000
C. 2500
D. 3000
Question 14
A consumer has a budget constraint of 100 units of currency and a preference for two goods, X and Y. The prices of X and Y are 5 and 10 units of currency, respectively. If the consumer's indifference curve is tangent to the budget line at point (20, 10), what is the marginal utility of good X?
A. 10
B. 20
C. 30
D. 40
Question 15
A company uses a warehouse management system (WMS) to optimize its inventory management. What is the primary benefit of using a WMS?
A. Improved inventory accuracy and reduced errors
B. Enhanced supply chain visibility and responsiveness
C. Increased inventory turnover and reduced stockouts
D. Reduced labor costs and improved productivity

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