POST UTME COAL CITY UNIVERSITY 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm'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 firm wants to increase its production by 20% while keeping the labor input constant, by what percentage should it increase its capital input?
A. 10%
B. 20%
C. 30%
D. 40%
Question 2
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 wants to increase its production by 20% while keeping the labor input constant, by what percentage should it increase its capital input?
A. 10%
B. 20%
C. 30%
D. 40%
Question 3
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the units of labor, and K is the units of capital. If the company wants to increase its production by 20% while keeping labor constant, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 4
A consumer's indifference curve is given by the equation u(x,y) = 2x + 3y. If the consumer's income is 100 and the price of x is 5, what is the optimal quantity of y?
A. 10
B. 15
C. 20
D. 25
Question 5
A company is considering two different transportation modes to deliver its products. Mode A involves a truck with a capacity of 10 tons, while Mode B involves a train with a capacity of 20 tons. If the company needs to transport 30 tons of products, which mode should it choose?
A. Mode A
B. Mode B
C. Both modes are equally effective
D. Neither mode is effective
Question 6
A firm has the following financial statements: ( egin{array}{c|c} ext{Assets} & ext{Liabilities} \ hline ext{Cash} & ext{Accounts Payable} \ ext{Accounts Receivable} & ext{Bonds Payable} \ ext{Inventory} & ext{Common Stock} \ ext{Property, Plant, and Equipment} & ext{Retained Earnings} \ end{array} ). What is the primary purpose of the financial statements?
A. To evaluate profitability
B. To assess liquidity
C. To determine solvency
D. To measure financial performance
Question 7
A firm's revenue function is given by R = 2L^2 + 3H^2, where R is revenue, L is labor, and H is capital. If the firm increases labor from 100 to 121 units, and capital from 100 to 121 units, by how much will revenue increase?
A. ₦1000
B. ₦2000
C. ₦3000
D. ₦4000
Question 8
A company has a capital structure consisting of 60% debt and 40% equity. If the company's cost of debt is 8% and its cost of equity is 12%, what is the company's weighted average cost of capital (WACC)?
A. 6%
B. 7%
C. 8%
D. 9%
Question 9
A bank's cash reserve ratio is the percentage of its deposits that it is required to hold in
A. cash
B. loans
C. investments
D. reserves
Question 10
A company uses the following inventory turnover ratio to evaluate its inventory management: ( rac{Cost of Goods Sold}{Average Inventory} ). What is the primary purpose of this ratio?
A. To measure liquidity
B. To evaluate profitability
C. To assess inventory turnover
D. To determine working capital
Question 11
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the units of labor, and K is the units of capital. If the firm wants to increase its production by 20% while keeping labor constant, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 12
A business is considering entering into a joint venture with a partner. Which of the following factors would be most relevant in determining whether the joint venture is a good idea?
A. The potential for increased market share
B. The potential for reduced costs
C. The potential for improved product quality
D. The potential for increased competition
Question 13
A country's import demand function is given by M = 100 - 2Y, where M is the quantity imported and Y is the country's income. If the country's income is ₦100,000, what is the quantity imported?
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 14
A firm's revenue function is given by R(x) = 2x^2 + 10x. If the firm's marginal revenue is 20 when x = 5, what is the value of the firm's total revenue?
A. 250
B. 300
C. 350
D. 400
Question 15
A bank has a reserve requirement of 10% and a cash reserve of ₦100 million. If the bank's total deposits are ₦1 billion, what is the maximum amount of loans it can make?
A. ₦500 million
B. ₦750 million
C. ₦900 million
D. ₦1 billion

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