POST UTME OSUSTECH 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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 labor input by 20% and capital input by 15%, what is the percentage change in the quantity produced?
A. 10%
B. 12%
C. 15%
D. 18%
Question 2
A company has the following probability distribution for the number of units it sells in a day: | Units Sold | Probability | | --- | --- | | 0 | 0.1 | | 1 | 0.3 | | 2 | 0.2 | | 3 | 0.1 | | 4 | 0.3 | What is the expected value of the number of units sold in a day?
A. ( E(X) = 1.5 )
B. ( E(X) = 2.5 )
C. ( E(X) = 3.5 )
D. ( E(X) = 4.5 )
Question 3
A company has the following revenue function: R = 2x + 3y. If the price of x is ₦2 and the price of y is ₦3, what is the optimal combination of x and y?
A. ( x = 2, y = 4 )
B. ( x = 4, y = 2 )
C. ( x = 6, y = 0 )
D. ( x = 0, y = 4 )
Question 4
A company's cost function is given by C(x) = 2x^2 + 5x - 3, where x is the number of units produced. If the company produces 10 units, what is its total cost?
A. ₦23
B. ₦26
C. ₦29
D. ₦32
Question 5
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing
A. diminishing returns
B. increasing costs
C. decreasing demand
D. increasing supply
Question 6
A company has a production function 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 labor input by 20% and capital input by 15%, what is the percentage change in the quantity produced?
A. 10%
B. 12%
C. 15%
D. 18%
Question 7
A sole trader's business is not a separate legal entity from its owner. What is the implication of this?
A. The sole trader is personally liable for business debts
B. The sole trader can transfer ownership to another person
C. The sole trader's business is taxed separately from their personal income
D. The sole trader's business is not subject to bankruptcy laws
Question 8
A firm is considering two investment projects. Project A has a 10% chance of generating a profit of ₦100,000 and a 90% chance of generating a profit of ₦50,000. Project B has a 20% chance of generating a profit of ₦150,000 and an 80% chance of generating a profit of ₦20,000. Which project has a higher expected profit?
A. Project A
B. Project B
C. Both projects have the same expected profit
D. Neither project has a higher expected profit
Question 9
A firm is considering two different production technologies: Technology A and Technology B. Technology A has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit produced. Technology B has a fixed cost of ₦150,000 and a variable cost of ₦30 per unit produced. If the firm produces 1,000 units, how much will it save by using Technology A instead of Technology B?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 10
The _______________ of a company is the amount of its share capital that has been issued to its members.
A. Authorized
B. Issued
C. Paid-up
D. Subscribed
Question 11
A firm's production function is given by Q = 2L^0.5 + 3K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm wants to produce 10 units of output, and it has a labor input of 4 units, how much capital should it hire?
A. 5 units of capital
B. 10 units of capital
C. 15 units of capital
D. 20 units of capital
Question 12
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 compared to other countries. What is the opportunity cost of producing a good?
A. The cost of producing the good in terms of other goods that could have been produced instead
B. The cost of producing the good in terms of the resources used to produce it
C. The cost of importing the good from another country
D. The cost of storing the good in a warehouse
Question 13
The _______________ of a company is the amount of its share capital that has been subscribed by its members.
A. Authorized
B. Issued
C. Paid-up
D. Subscribed
Question 14
A firm's production function is given by Q = 2L^0.5 + 3K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm wants to produce 10 units of output, how much labor should it hire?
A. 5 units of labor
B. 10 units of labor
C. 15 units of labor
D. 20 units of labor
Question 15
A firm has a budget constraint of 1000 units of currency, and it wants to maximize its profit. The firm's revenue function is given by R = 2Q, and its cost function is given by C = 3Q^2. What is the firm's optimal quantity of output?
A. 10 units of output
B. 20 units of output
C. 30 units of output
D. 40 units of output

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