POST UTME PAN-ATLANTIC UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering two different transportation options for its products. Which option is more likely to reduce transportation costs?
A. Option A: Air transportation
B. Option B: Land transportation
C. Option C: Sea transportation
D. Option D: Rail transportation
Question 2
A consumer has a budget of ₦1000 and a preference for two goods, A and B. The prices of the goods are ₦200 and ₦300 respectively. If the consumer's indifference curves are convex to the origin, and the budget constraint is given by 200A + 300B = 1000, what is the optimal combination of goods A and B that the consumer will choose?
A. A = 2, B = 1
B. A = 1, B = 2
C. A = 3, B = 0
D. A = 0, B = 3
Question 3
A company has a cost function given by C = 2L + 3K, where C is the cost, L is the labor, and K is the capital. If the company wants to minimize the cost, and the labor and capital are fixed at 10 and 15 respectively, what is the minimum cost?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 4
A company has a production cost of ₦10,000 per unit and a selling price of ₦15,000 per unit. If the company produces 100 units per day, what is the profit per unit?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, what is the minimum cost of production?
A. ₦800
B. ₦1600
C. ₦3200
D. ₦6400
Question 6
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will
A. increase
B. decrease
C. remain constant
D. shift to the left
Question 7
A company is considering two different communication options for its customers. Which option is more likely to improve customer satisfaction?
A. Option A: Email communication
B. Option B: Phone communication
C. Option C: Social media communication
D. Option D: In-person communication
Question 8
A company's financial statements show a net income of ₦1,000,000 and a total equity of ₦2,000,000. What is the company's return on equity (ROE) for the year?
A. 50%
B. 60%
C. 70%
D. 80%
Question 9
A firm has a cost structure consisting of fixed costs of ₦500,000 and variable costs of ₦0.50 per unit. If the firm produces 10,000 units, what is its total cost?
A. ₦6,500,000
B. ₦6,750,000
C. ₦7,000,000
D. ₦7,250,000
Question 10
A firm is considering setting up a new bank account to manage its cash flows. The bank account will require an initial deposit of ₦100 million and will have an annual maintenance fee of ₦20,000. The firm's current cash balance is ₦500 million, and the bank account will earn an interest rate of 8% per annum. What is the expected annual interest income from the bank account?
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 11
A company has a revenue function given by R = 100Q - 2Q^2, where R is the revenue and Q is the quantity sold. If the company wants to maximize the revenue, and the quantity sold is fixed at 10, what is the maximum revenue?
A. ₦800
B. ₦900
C. ₦1000
D. ₦1100
Question 12
A consumer has a utility function given by U = 2A + 3B, where A and B are the quantities of two goods consumed. If the prices of the goods are ₦200 and ₦300 respectively, and the consumer's budget is ₦1000, what is the optimal combination of goods A and B that the consumer will choose?
A. A = 2, B = 1
B. A = 1, B = 2
C. A = 3, B = 0
D. A = 0, B = 3
Question 13
A company is considering setting up a new financial institution to provide loans to its customers. The company's current annual revenues are ₦1.5 billion, and the new financial institution is expected to generate an additional ₦750 million per annum. The company's cost of capital is 15% per annum. What is the expected return on investment (ROI) for the new financial institution?
A. 20%
B. 22%
C. 25%
D. 28%
Question 14
A company has a production capacity of 100 units per day. However, due to a shortage of raw materials, production is reduced to 80 units per day. What is the opportunity cost of producing 80 units per day instead of 100 units per day?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 15
A company is considering two different production options for its products. Which option is more likely to reduce production costs?
A. Option A: In-house production
B. Option B: Outsourced production
C. Option C: Shared production
D. Option D: Contract manufacturing

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