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POST UTME PAN-ATLANTIC UNIVERSITY 2022 Commerce | Objective

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Question 1

In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the equilibrium price and quantity of the good?

A. (P = 10, Q = 100)

B. (P = 20, Q = 50)

Correct C. (P = 15, Q = 75)

D. (P = 25, Q = 25)

Correct Answer: C

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Question 2

A company's production function is given by (Q = 2L^2 + 3K^2), where (L) is labor and (K) is capital. If the company wants to produce 100 units of output, how many units of labor are required?

A. (L = 5)

Correct B. (L = 10)

C. (L = 15)

D. (L = 20)

Correct Answer: B

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Question 3

A firm's cost function is given by (C = 2L + 3K), where (L) is labor and (K) is capital. If the firm hires 10 units of labor and 5 units of capital, what is the total cost?

A. (C = 25)

Correct B. (C = 30)

C. (C = 35)

D. (C = 40)

Correct Answer: B

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Question 4

A company's revenue function is given by (R = 2PQ), where (P) is price and (Q) is quantity. If the company sells 100 units of output at a price of 10, what is the total revenue?

A. (R = 100)

Correct B. (R = 200)

C. (R = 300)

D. (R = 400)

Correct Answer: B

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Question 5

A firm's profit function is given by (P = R - C), where (R) is revenue and (C) is cost. If the firm's revenue is 200 and its cost is 100, what is the profit?

A. (P = 50)

Correct B. (P = 100)

C. (P = 150)

D. (P = 200)

Correct Answer: B

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Question 6

In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the equilibrium price and quantity of a product in this market?

A. ₦100, 100 units

Correct B. ₦120, 80 units

C. ₦150, 60 units

D. ₦180, 40 units

Correct Answer: B

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Question 7

A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 70% full. If the company receives a new shipment of 2,000 units, what is the new percentage of the warehouse that is full?

A. 50%

Correct B. 60%

C. 70%

D. 80%

Correct Answer: B

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Question 8

A firm's cost function is given by C(q) = 2q^2 + 10q + 5. What is the marginal cost function?

Correct A. ( MC(q) = 4q + 10 )

B. ( MC(q) = 2q + 5 )

C. ( MC(q) = 4q^2 + 10q )

D. ( MC(q) = 2q^2 + 10q + 5 )

Correct Answer: A

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Question 9

A bank offers a loan of ₦100,000 at an annual interest rate of 12%. If the loan is to be repaid in 5 years, what is the monthly installment?

A. ₦2,500

Correct B. ₦3,000

C. ₦3,500

D. ₦4,000

Correct Answer: B

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Question 10

A company's profit function is given by π(q) = 2q^2 - 10q + 5. What is the revenue function?

Correct A. ( R(q) = 2q^2 - 10q + 5 )

B. ( R(q) = 2q^2 + 10q + 5 )

C. ( R(q) = 2q^2 - 5q + 5 )

D. ( R(q) = 2q^2 + 5q + 5 )

Correct Answer: A

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Question 11

What is the primary function of a sole trader in a business?

Correct A. To manage and control all aspects of the business

B. To provide financial support to the business

C. To make strategic decisions for the business

D. To handle customer service and sales

Correct Answer: A

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Question 12

A company has a total of 100 shares, divided into 10 classes. If 50 shares of Class A are issued, and 30 shares of Class B are issued, what is the total number of shares issued?

A. 50

Correct B. 60

C. 70

D. 80

Correct Answer: B

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Question 13

A business imports goods worth ₦1,000,000 from a foreign country. If the exchange rate is 1 USD = ₦500, and the import duty is 10% of the total value, what is the total amount paid by the business?

Correct A. ₦1100000

B. ₦1050000

C. ₦1000000

D. ₦950000

Correct Answer: A

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Question 14

A company has a warehouse with a capacity of 1,000 units. If 500 units are already stored, and 200 units are received, what is the new capacity of the warehouse?

A. 1000

Correct B. 1200

C. 1500

D. 2000

Correct Answer: B

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Question 15

A business has a stock of goods worth ₦500,000. If the stock is insured against loss or damage, and the premium is 5% of the total value, what is the total amount paid by the business?

A. ₦25000

Correct B. ₦50000

C. ₦25500

D. ₦50500

Correct Answer: B

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Question 16

In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will

A. decrease

Correct B. increase

C. remain constant

D. move in the opposite direction

Correct Answer: B

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Question 17

A firm's production function is given by Q = 2L^(1/2)K^(1/2). If the firm's current output is 16 units and the capital stock is 4 units, what is the required labor input?

A. 4

Correct B. 8

C. 16

D. 32

Correct Answer: B

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Question 18

A firm's revenue function is given by R(p) = 100p - 2p^2. If the firm's current price is 20 units, what is the required quantity to produce?

A. 10

Correct B. 20

C. 30

D. 40

Correct Answer: B

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Question 19

A firm's cost function is given by C(L) = 2L + 10. If the firm's current labor input is 5 units, what is the required total cost?

A. 20

Correct B. 25

C. 30

D. 35

Correct Answer: B

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Question 20

A firm's profit function is given by π(L) = 100L - 2L^2 - 10. If the firm's current labor input is 5 units, what is the required profit?

A. 20

Correct B. 25

C. 30

D. 35

Correct Answer: B

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Question 21

A company is considering two marketing strategies: one that targets a niche market with a high-end product and another that targets a broader market with a lower-end product. Which strategy is more likely to result in higher sales and market share?

A. Targeting a niche market with a high-end product

Correct B. Targeting a broader market with a lower-end product

C. Targeting a niche market with a lower-end product

D. Targeting a broader market with a high-end product

Correct Answer: B

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Question 22

A firm is considering two production strategies: one that involves producing a single product line with high volume and low variety, and another that involves producing multiple product lines with low volume and high variety. Which strategy is more likely to result in higher efficiency and productivity?

Correct A. Producing a single product line with high volume and low variety

B. Producing multiple product lines with low volume and high variety

C. Producing a single product line with low volume and high variety

D. Producing multiple product lines with high volume and low variety

Correct Answer: A

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Question 23

A company has a production process that involves the following steps: raw material procurement, production, quality control, and packaging. Which step is most likely to result in the highest cost?

A. Raw material procurement

Correct B. Production

C. Quality control

D. Packaging

Correct Answer: B

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Question 24

A firm is considering two insurance options: one that provides coverage for a specific event (e.g. fire) and another that provides coverage for a broader range of events (e.g. fire, theft, liability). Which option is more likely to result in higher premiums?

A. Specific event coverage

Correct B. Broad range of event coverage

C. Both specific and broad range of event coverage

D. Neither specific nor broad range of event coverage

Correct Answer: B

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Question 25

A company is considering two transportation options: one that involves using a private fleet of vehicles and another that involves using a third-party logistics provider. Which option is more likely to result in higher costs?

Correct A. Private fleet of vehicles

B. Third-party logistics provider

C. Both private fleet and third-party logistics provider

D. Neither private fleet nor third-party logistics provider

Correct Answer: A

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