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?
A. ₦200
B. ₦300
C. ₦400
D. ₦500
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?
A. 32
B. 64
C. 128
D. 256
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?
A. ₦4000
B. ₦6000
C. ₦8000
D. ₦10000
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?
A. Technology A
B. Technology B
C. Both technologies are equally profitable
D. Neither technology is profitable
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?
A. ₦3125
B. ₦6250
C. ₦9375
D. ₦12500
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?
A. (2, 3)
B. (3, 2)
C. (4, 1)
D. (1, 4)
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?
A. Contract law
B. Tort law
C. Property law
D. Consumer protection law
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?
A. Fire insurance policy
B. Public liability insurance policy
C. Professional indemnity insurance policy
D. Business interruption insurance policy
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?
A. The cost of hiring an employee
B. The potential increase in revenue
C. The impact on the business's cash flow
D. All of the above
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?
A. ₦110,000
B. ₦120,000
C. ₦130,000
D. ₦140,000
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?
A. (2, 1)
B. (1, 2)
C. (3, 0)
D. (0, 3)
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?
A. Operational risk
B. Regulatory risk
C. Market risk
D. Credit risk
Question 13
A sole trader is considering forming a partnership with another business owner. What type of business structure is this?
A. Sole trader
B. Partnership
C. Limited company
D. Cooperative society
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?
A. Return on Equity (ROE)
B. Debt-to-Equity Ratio
C. Current Ratio
D. Gross Margin
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?
A. The value of the good in terms of other goods that could be produced instead
B. The cost of producing the good in terms of labor and resources
C. The price of the good in the market
D. The quantity of the good produced

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: