POST UTME REDEEMERS UNIVERSITY 2020 Commerce | Objective
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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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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