POST UTME REDEEMERS UNIVERSITY 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a production function Q = 2L^0.4K^0.6, where Q is output, L is labor, and K is capital. If labor increases by 20% and capital remains constant, what is the percentage change in output?
A. +10%
B. +20%
C. +30%
D. +40%
Question 2
A bank offers a 5-year fixed deposit account with an interest rate of 12% per annum compounded annually. If the initial deposit is ₦100,000, what is the future value of the investment after 5 years?
A. ₦163,922.71
B. ₦164,922.71
C. ₦165,922.71
D. ₦166,922.71
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the firm's current output?
A. 24
B. 32
C. 48
D. 64
Question 4
A firm's cost function is given by C = 100 + 2L + 3K, where C is cost, L is labor, and K is capital. If labor increases by 10% and capital remains constant, what is the percentage change in cost?
A. +5%
B. +10%
C. +15%
D. +20%
Question 5
A sole trader has a business income of ₦500,000 and a business expense of ₦200,000. If the sole trader's personal income is ₦300,000, what is the sole trader's total income for the year?
A. ₦600,000
B. ₦700,000
C. ₦800,000
D. ₦900,000
Question 6
A consumer has a utility function given by U = x^2 + 2y, where x and y are the quantities of two goods consumed. If the price of good x is ₦50 per unit and the price of good y is ₦100 per unit, and the consumer's income is ₦1000, what is the optimal bundle of goods?
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 20, y = 2
Question 7
A company has the following balance sheet: Assets = ₦100,000, Liabilities = ₦50,000, and Equity = ₦50,000. If the company issues 10,000 shares at ₦5 per share, what is the new equity?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 8
A firm's profit function is given by π = 1000 + 20Q - 100 - 2L - 3K, where π is profit, Q is quantity sold, L is labor, and K is capital. If labor increases by 10% and capital remains constant, what is the percentage change in profit?
A. +5%
B. +10%
C. +15%
D. +20%
Question 9
A country has a trade deficit of ₦100 billion and a balance of payments deficit of ₦50 billion. If the country's GDP is ₦5 trillion, what is the country's current account deficit as a percentage of its GDP?
A. 2%
B. 3%
C. 4%
D. 5%
Question 10
A consumer purchases a product from a retailer, but the product is defective. The consumer returns the product to the retailer, who offers a replacement or a refund. Which of the following is a type of consumer protection?
A. Product liability
B. Consumer rights
C. Warranty
D. Return policy
Question 11
A firm is considering two investment options: Option A, which has a 10% chance of returning ₦100,000 and a 90% chance of returning ₦0, or Option B, which has a 20% chance of returning ₦80,000 and an 80% chance of returning ₦0. Which option has a higher expected return?
A. Option A
B. Option B
C. Option A and Option B are equal
D. Option B is higher
Question 12
A company has a revenue function R = 1000 + 20Q, where R is revenue and Q is quantity sold. If the price per unit increases by 10%, what is the percentage change in revenue?
A. +10%
B. +20%
C. +30%
D. +40%
Question 13
A company has a production function 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 price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the company wants to maximize its profit, what is the optimal level of labor and capital?
A. L = 100, K = 100
B. L = 50, K = 200
C. L = 200, K = 50
D. L = 100, K = 50
Question 14
A company specializes in producing and selling high-quality leather goods. The company's production process involves several stages, including cutting, stitching, and finishing. The company uses a just-in-time (JIT) inventory system to manage its inventory levels. Which of the following is a benefit of the JIT system?
A. Reduced inventory costs
B. Improved product quality
C. Increased production efficiency
D. Enhanced customer satisfaction
Question 15
A firm specializing in the production of textiles has the following cost function: C(x) = 2x^2 + 100x + 5000. If the firm's revenue function is R(x) = 3x^2 - 20x + 100, where x is the number of units produced, what is the break-even point?
A. 10 units
B. 20 units
C. 30 units
D. 40 units

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