POST UTME UI 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's revenue function is given by ( R = 20Q - Q^2 ). If the firm's output is 5, what is the total revenue?
A. ( R = 50 )
B. ( R = 60 )
C. ( R = 70 )
D. ( R = 80 )
Question 2
A bank's reserve requirement is
A. The minimum amount of cash that a bank must hold in reserve
B. The maximum amount of credit that a bank can extend to its customers
C. The minimum amount of deposits that a bank must maintain
D. The maximum amount of loans that a bank can grant
Question 3
A sole trader's business is registered under which of the following?
A. Partnership
B. Company
C. Sole Proprietorship
D. Limited Liability Partnership
Question 4
A firm uses the just-in-time (JIT) inventory system. What is the primary advantage of this system?
A. Reduced inventory costs
B. Improved quality control
C. Increased flexibility in production
D. Reduced transportation costs
Question 5
A firm's profit function is given by ( pi = R - C ). If the firm's revenue and cost functions are ( R = 20Q - Q^2 ) and ( C = 10L + 20K ) respectively, and the firm's output is 5, what is the total profit?
A. ( pi = 30 )
B. ( pi = 40 )
C. ( pi = 50 )
D. ( pi = 60 )
Question 6
A firm's production function is given by ( Q = 2L^2 + 3K ). If the firm's labor and capital inputs are 4 and 2 respectively, what is the total output?
A. ( Q = 20 )
B. ( Q = 25 )
C. ( Q = 30 )
D. ( Q = 35 )
Question 7
A firm uses the weighted average cost of capital (WACC) to determine its cost of capital. What is the primary component of WACC?
A. Debt
B. Equity
C. Preferred stock
D. All of the above
Question 8
A company has the following cost structure: Fixed costs = ₦100,000; Variable costs = ₦50 per unit. If the selling price is ₦75 per unit, what is the break-even point?
A. 1,000 units
B. 2,000 units
C. 3,000 units
D. 4,000 units
Question 9
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm wants to produce 16 units of output, and it has 4 units of labor available, how many units of capital does it need to produce this output?
A. 4
B. 8
C. 16
D. 32
Question 10
In a sole proprietorship, the owner's personal assets are protected from business liabilities through a legal concept known as?
A. Separate Legal Entity
B. Limited Liability
C. Separate Accounting Entity
D. Separate Tax Entity
Question 11
A firm's cost function is given by ( C = 10L + 20K ). If the firm's labor and capital inputs are 2 and 3 respectively, what is the marginal cost?
A. ( MC = 10 )
B. ( MC = 15 )
C. ( MC = 20 )
D. ( MC = 25 )
Question 12
A firm's revenue function is given by ( R = 20Q - Q^2 ). If the firm's output is 5, what is the marginal revenue?
A. ( MR = 10 )
B. ( MR = 15 )
C. ( MR = 20 )
D. ( MR = 25 )
Question 13
A firm's profit function is given by ( pi = R - C ). If the firm's revenue and cost functions are ( R = 20Q - Q^2 ) and ( C = 10L + 20K ) respectively, and the firm's output is 5, what is the marginal profit?
A. ( MP = 10 )
B. ( MP = 15 )
C. ( MP = 20 )
D. ( MP = 25 )
Question 14
A firm's production function is given by ( Q = 2L^2 + 3K ). If the firm's labor and capital inputs are 4 and 2 respectively, what is the marginal product of labor?
A. ( MPL = 4 )
B. ( MPL = 6 )
C. ( MPL = 8 )
D. ( MPL = 10 )
Question 15
A warehouse's inventory control system uses the
A. First-In-First-Out (FIFO)
B. Last-In-First-Out (LIFO)
C. Weighted Average Cost (WAC)
D. Least Recently Used (LRU)

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