POST UTME WELLSPRING UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The concept of 'Economies of Scale' implies that
A. Firms can reduce costs by increasing production
B. Firms can increase revenue by increasing production
C. Firms can reduce costs by decreasing production
D. Firms can increase revenue by decreasing production
Question 2
A company's foreign trade policy is influenced by its
A. Government
B. Market
C. Competition
D. Technology
Question 3
A firm's production function is characterized by the law of
A. diminishing returns
B. increasing returns
C. constant returns
D. decreasing returns
Question 4
A company's production function is influenced by its
A. Technology
B. Capital
C. Labor
D. Raw Materials
Question 5
A firm is considering two investment projects. Project A has a 10% chance of returning 100,000 and a 90% chance of returning 0. Project B has a 20% chance of returning 80,000 and a 80% chance of returning 0. Which project has a higher expected return?
A. Project A
B. Project B
C. Both projects have the same expected return
D. Neither project has a higher expected return
Question 6
A bank's primary function is to act as a
A. depository institution
B. credit intermediary
C. investment bank
D. central bank
Question 7
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 company increases its labor input from 100 to 121 units and its 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 8
A firm specializes in producing a single good, which is a characteristic of a(n)
A. monopoly
B. oligopoly
C. perfect competition
D. monopsony
Question 9
A company uses the JIT inventory management system. The company receives a shipment of 500 units of raw materials. If the company uses the JIT system, what is the total number of units in the warehouse after the new shipment arrives?
A. 500
B. 250
C. 375
D. 750
Question 10
A company uses the EOQ model to determine the optimal order quantity. The company's demand rate is 20,000 units per year, and the ordering cost is ₦1,000 per order. If the company wants to minimize its total inventory cost, what is the optimal order quantity?
A. 10,000
B. 20,000
C. 30,000
D. 40,000
Question 11
In a perfectly competitive market, the supply curve is determined by the
A. Law of Supply
B. Law of Demand
C. Marginal Cost
D. Marginal Revenue
Question 12
A company's production function is influenced by its
A. Technology
B. Capital
C. Labor
D. Raw Materials
Question 13
In a perfectly competitive market, the law of supply states that the quantity supplied of a good increases as the price of the good increases, ceteris paribus. However, the law of supply also assumes that the firm is a price-taker. What is the implication of this assumption on the firm's decision-making process?
A. The firm can set its own price for the good.
B. The firm must accept the market price for the good.
C. The firm can influence the market price of the good.
D. The firm can produce any quantity of the good it wants.
Question 14
A company uses a first-in-first-out (FIFO) inventory system. If the oldest item in the warehouse has a cost of ₦1200 and the next oldest item has a cost of ₦1500, what is the total cost of the first two items?
A. ₦2700
B. ₦2700
C. ₦2700
D. ₦2700
Question 15
A company specializes in producing high-quality leather goods. It has a warehouse with a storage capacity of 10,000 units. The company receives a new shipment of 5,000 units of leather goods. If the company uses the First-In-First-Out (FIFO) method to manage its inventory, what is the total number of units in the warehouse after the new shipment arrives?
A. 15,000
B. 10,000
C. 5,000
D. 20,000

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