POST UTME COAL CITY UNIVERSITY 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The concept of 'opportunity cost' is central to the study of economics. What is the opportunity cost of choosing a particular course of action?
A. The cost of the chosen action
B. The cost of the alternative action
C. The cost of the action that was not chosen
D. The cost of the action that was chosen
Question 2
A firm specializes in producing only one product. This specialization leads to economies of scale in production, which results in lower costs per unit. However, this specialization also limits the firm's ability to respond to changes in market demand. What is the name of this phenomenon?
A. Economies of scale
B. Diseconomies of scale
C. Limited diversification
D. Limited economies of scale
Question 3
A firm's revenue function is given by R = 2Q. If the firm's output is 16, what is the firm's revenue?
A. 32
B. 64
C. 128
D. 256
Question 4
A company's production process involves the transformation of inputs into outputs. Which of the following is a type of production process?
A. Job production
B. Batch production
C. Mass production
D. Project production
Question 5
A company's sole trader has a business income of ₦250,000 and expenses of ₦180,000. Calculate the profit before tax.
A. ₦70,000
B. ₦80,000
C. ₦90,000
D. ₦100,000
Question 6
A company uses the following data to calculate its weighted average cost of capital (WACC): Debt: ₦100,000,000, Interest rate: 10%, Equity: ₦50,000,000, Cost of equity: 15%. What is the WACC?
A. 10%
B. 12%
C. 14%
D. 16%
Question 7
A firm has a production function Q = 2L + 3K, where Q is output, L is labor, and K is capital. If the firm hires 5 units of labor and 3 units of capital, what is the output?
A. 10
B. 15
C. 20
D. 25
Question 8
A firm is considering two different types of insurance: Type A, which covers against loss of property, and Type B, which covers against loss of income. Which type of insurance is likely to be more beneficial to the firm?
A. Type A
B. Type B
C. Both types are equally beneficial
D. Neither type is beneficial
Question 9
A firm is considering two different marketing strategies: Strategy A, which involves a high level of advertising and a low level of sales promotion, and Strategy B, which involves a low level of advertising and a high level of sales promotion. Which strategy is likely to be more effective?
A. Strategy A
B. Strategy B
C. Both strategies are equally effective
D. Neither strategy is effective
Question 10
A foreign trade agreement between Nigeria and the United States involves the export of 10,000 units of Nigerian-made textiles to the US. If each unit costs ₦5,000, calculate the total value of the export in US dollars, given the exchange rate of 1 USD = 425 NGN.
A. ₦50,000,000
B. ₦60,000,000
C. ₦70,000,000
D. ₦80,000,000
Question 11
A company has a fixed cost of ₦500,000 and a variable cost of ₦200 per unit. If it produces 1000 units, what is the total cost?
A. ₦500,000 + ₦200,000
B. ₦500,000 + ₦200,000 + ₦200
C. ₦500,000 + ₦200,000 + ₦200,000
D. ₦500,000 + ₦200,000 + ₦200,000 + ₦200
Question 12
A company has a production function given by Q = 2L + 3K, where Q is the quantity produced, L is the number of labor hours, and K is the amount of capital invested. If the company wants to produce 20 units, how many labor hours are required?
A. 10
B. 20
C. 30
D. 40
Question 13
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 its labor input from 100 units to 121 units, and its capital input from 100 units to 121 units, by how many percentage points will its quantity produced increase?
A. 10%
B. 20%
C. 30%
D. 40%
Question 14
A company has a budget of ₦100,000 to spend on advertising. If the cost of advertising on television is ₦50,000 and the cost of advertising on radio is ₦30,000, how much is left for other forms of advertising?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 15
A sole trader has a business income of ₦500,000 and a business expense of ₦200,000. What is the profit made by the sole trader?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000

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: