POST UTME AAUA 2019 Commerce | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm has 100 units of labor and 100 units of capital, what is the maximum value of output?
Question 2
A firm wants to minimize its total cost of production, which is given by TC = 100L + 200K. If the firm's current input prices are L = ₦100 and K = ₦200, and it wants to produce 100 units of output, what should be the optimal input combination?
Question 3
A firm wants to minimize its total cost of production, which is given by TC = 100L + 200K. If the firm's current input prices are L = ₦100 and K = ₦200, and it wants to produce 100 units of output, what should be the optimal input combination?
Question 4
A consumer has the right to cancel a contract within 14 days of signing. What is the name of this type of cancellation?
Question 5
A company's sole trader is considering the purchase of a new piece of equipment for its business. The equipment costs ₦150,000 and has a useful life of 5 years. The company expects to use the equipment for 8 hours a day, 5 days a week. The equipment's maintenance cost is ₦10,000 per year. Calculate the annual depreciation of the equipment using the straight-line method.
Question 6
A firm has a production capacity of 1,000 units per day. If the firm operates for 20 days, what is the total production?
Question 7
A country's trade balance is given by the equation TB = X - M, where TB is the trade balance, X is exports and M is imports. If the country's exports are ₦500 billion and imports are ₦600 billion, what is the trade balance?
Question 8
A firm is considering two different production processes: process A and process B. Process A has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit, while process B has a fixed cost of ₦150,000 and a variable cost of ₦30 per unit. If the firm produces 10,000 units, what is the total cost of production for each process?
Question 9
In a perfectly competitive market, the supply curve is determined by the marginal cost curve. However, in a real-world scenario, the supply curve is often influenced by other factors such as the law of diminishing returns. Which of the following best describes the relationship between the law of diminishing returns and the supply curve?
Question 10
The concept of specialization in production is closely related to the idea of comparative advantage. Explain how a country can benefit from specializing in the production of a particular good, even if it is not the most efficient producer of that good.
Question 11
A sole trader's business is considered a separate legal entity from its owner. However, the owner may be held personally liable for the business's debts. What is the name of this type of liability?
Question 12
A company is considering two different production methods to produce a product. Method A requires an initial investment of ₦100,000 and produces 100 units per day. Method B requires an initial investment of ₦150,000 and produces 120 units per day. If the company wants to produce 1,000 units per day, which method should it choose?
Question 13
A company's sole trader is considering the purchase of a new piece of equipment for its business. The equipment costs ₦200,000 and has a useful life of 5 years. The company expects to use the equipment for 8 hours a day, 5 days a week. The equipment's maintenance cost is ₦15,000 per year. Calculate the annual depreciation of the equipment using the straight-line method.
Question 14
A firm wants to minimize its total cost of production, which is given by TC = 100L + 200K. If the firm's current input prices are L = ₦100 and K = ₦200, and it wants to produce 100 units of output, what should be the optimal input combination?
Question 15
A firm specializes in producing only one good. This specialization is an example of:
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