Practice Post UTME PAN-ATLANTIC UNIVERSITY commerce 2022 Past Questions

Question 1

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)

B. (C = 30)

C. (C = 35)

D. (C = 40)

Question 2

A firm is considering two communication options: one that involves using a traditional mail system and another that involves using electronic communication (e.g. email, phone). Which option is more likely to result in higher efficiency?

A. Traditional mail system

B. Electronic communication

C. Both traditional mail and electronic communication

D. Neither traditional mail nor electronic communication

Question 3

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

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

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

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

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

Question 4

A consumer has a budget constraint of 100, and the prices of two goods are 10 and 20, respectively. If the consumer's indifference curve is tangent to the budget line, what is the consumer's optimal consumption bundle?

A. (10, 5)

B. (5, 10)

C. (15, 3)

D. (3, 15)

Question 5

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

A. decrease

B. increase

C. remain constant

D. move in the opposite direction

Question 6

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)

B. (R = 200)

C. (R = 300)

D. (R = 400)

Question 7

A consumer has a budget constraint of 100, and the prices of two goods are 10 and 20, respectively. If the consumer's indifference curve is tangent to the budget line, what is the consumer's optimal consumption bundle?

A. (10, 5)

B. (5, 10)

C. (15, 3)

D. (3, 15)

Question 8

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

B. ₦3,000

C. ₦3,500

D. ₦4,000

Question 9

The diagram below shows the production process for a firm.

A. The production process consists of raw materials, labor, capital, and entrepreneurship.

B. The production process consists of raw materials, labor, capital, and technology.

C. The production process consists of raw materials, labor, capital, and management.

D. The production process consists of raw materials, labor, capital, and marketing.

Question 10

The concept of production is closely related to the idea of specialization. Explain how specialization leads to increased efficiency in production.

A. Specialization leads to increased efficiency in production because it allows firms to focus on producing a specific good or service.

B. Specialization leads to increased efficiency in production because it allows firms to take advantage of economies of scale.

C. Specialization leads to increased efficiency in production because it allows firms to reduce their costs and increase their productivity.

D. Specialization leads to increased efficiency in production because it allows firms to improve their quality of goods and services.

Question 11

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

B. ₦50000

C. ₦25500

D. ₦50500

Question 12

The diagram below shows the marketing mix for a product.

A. The marketing mix consists of product, price, promotion, and place.

B. The marketing mix consists of product, price, promotion, and people.

C. The marketing mix consists of product, price, promotion, and process.

D. The marketing mix consists of product, price, promotion, and physical evidence.

Question 13

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?

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

Question 14

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

B. 25

C. 30

D. 35

Question 15

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%

B. 60%

C. 70%

D. 80%

POST UTME PAN-ATLANTIC UNIVERSITY 2022 Commerce | Objective

Master the Exam!

Help others prepare! Share this practice hub: