POST UTME UNIPORT 2018 Commerce | Objective

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Question 1
A firm's production function is given by Q = 2L + 3K, where Q is the quantity produced, L is the number of laborers, and K is the amount of capital. If the firm hires 5 laborers and 3 units of capital, what is the quantity produced?
A. 10
B. 15
C. 20
D. 25
Question 2
A sole trader's business is registered under which of the following?
A. Partnership
B. Sole Proprietorship
C. Limited Liability Company
D. Cooperative Society
Question 3
In a perfectly competitive market, the demand curve for a firm's product is its
A. marginal revenue curve
B. marginal cost curve
C. average revenue curve
D. average cost curve
Question 4
A company has a share capital of ₦1,000,000, divided into 100,000 ordinary shares of ₦10 each. If the company issues 20,000 shares to the public, what is the amount of share premium received?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 5
The term 'home trade' refers to the
A. exchange of goods and services within a country
B. exchange of goods and services between countries
C. exchange of goods and services between a country and its colonies
D. exchange of goods and services between a country and its neighboring countries
Question 6
The term 'foreign trade' refers to the
A. exchange of goods and services between countries
B. exchange of goods and services within a country
C. exchange of goods and services between a country and its colonies
D. exchange of goods and services between a country and its neighboring countries
Question 7
The term 'sole trade' refers to a business owned and operated by
A. one person
B. two or more people
C. a partnership of three or more people
D. a company with shareholders
Question 8
A consumer's utility function is given by U = x^(1/2) + y^(1/2), where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. x = 25, y = 25
B. x = 20, y = 30
C. x = 15, y = 35
D. x = 10, y = 40
Question 9
The process of transporting goods from one place to another is known as
A. logistics
B. transportation
C. distribution
D. warehousing
Question 10
A company has a profit of ₦500,000 and a turnover of ₦5,000,000. What is the gross profit margin?
A. 10%
B. 15%
C. 20%
D. 25%
Question 11
A company's production function is 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 company increases labor input from 100 to 121 units and capital input from 100 to 121 units, what is the percentage change in the quantity produced?
A. 10%
B. 20%
C. 30%
D. 40%
Question 12
A consumer purchases a product for ₦5,000 and pays a deposit of ₦1,000. If the consumer returns the product within 30 days, what is the amount of refund due?
A. ₦4,000
B. ₦3,000
C. ₦2,000
D. ₦1,000
Question 13
A company is considering two different production processes for a new product. Process A requires an initial investment of ₦100,000 and produces 100 units per day, while Process B requires an initial investment of ₦200,000 and produces 200 units per day. If the company wants to maximize its profit, which process should it choose?
A. Process A, as it has a lower initial investment
B. Process B, as it produces more units per day
C. Process A, as it has a higher profit margin
D. Process B, as it has a lower cost per unit
Question 14
A firm has a production function given by Q = 2L + 3K, where Q is the quantity produced, L is the number of laborers, and K is the amount of capital. If the firm hires 5 laborers and 3 units of capital, what is the marginal product of labor?
A. 1
B. 2
C. 3
D. 4
Question 15
A company's inventory is valued at ₦1,000,000. What is the accounting treatment for this?
A. Debit the Inventory Account
B. Credit the Inventory Account
C. Debit the Cost of Goods Sold Account
D. Credit the Cost of Goods Sold Account

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