POST UTME AL-HIKMAH UNIVERSITY 2025 Commerce | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company's cost function is given by C = 2Q^2 + 10Q, where C is the total cost and Q is the quantity produced. If the company produces 10 units, what is the total cost?
Question 2
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor and K is capital. If the firm's labor and capital inputs are 16 and 9 respectively, what is the firm's output?
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, what is the minimum cost of production?
Question 4
A firm is considering two different production technologies for its product. Technology A requires an initial investment of ₦5 million and has a variable cost of ₦2 per unit. Technology B requires an initial investment of ₦10 million and has a variable cost of ₦1 per unit. If the firm expects to produce 50,000 units, which technology should it choose?
Question 5
A bank offers a loan to a customer at an interest rate of 10% per annum. The loan is for a period of 5 years. What is the total interest paid by the customer?
Question 6
A consumer has a budget of ₦1000 and a preference for two goods, A and B. The prices of the goods are ₦200 and ₦300 respectively. If the consumer's indifference curve is given by the equation U = 2x + 3y, where x and y are the quantities of goods A and B respectively, what is the consumer's optimal bundle?
Question 7
A consumer purchases a product from a company, but the product is defective. The consumer sues the company for breach of contract. What type of law governs this dispute?
Question 8
A sole trader's business is exposed to the risk of a major fire that could result in significant financial losses. Which of the following insurance policies would be most suitable for the business?
Question 9
A sole trader is considering hiring an employee to help with the business. Which of the following is a key consideration when evaluating the decision to hire an employee?
Question 10
A firm is considering two marketing strategies: Strategy A, which involves a 10% increase in advertising expenditure, and Strategy B, which involves a 20% increase in sales force. If the firm's current advertising expenditure is ₦100,000 and its current sales force is 10 people, what is the total cost of Strategy A?
Question 11
A consumer has a budget of ₦500 and a preference for two goods, A and B. The prices of the goods are ₦100 and ₦200 respectively. If the consumer's indifference curve is given by the equation U = x + 2y, where x and y are the quantities of goods A and B respectively, what is the consumer's optimal bundle?
Question 12
A company's sole trader is considering expanding its operations to a new location. However, the new location has a different regulatory environment, which may affect the company's business operations. What type of risk is the company facing?
Question 13
A sole trader is considering forming a partnership with another business owner. What type of business structure is this?
Question 14
A company's financial performance can be evaluated using various metrics. Which of the following is NOT a key performance indicator (KPI) for a company's financial health?
Question 15
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost. What is the opportunity cost of producing a good?
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