POST UTME ELIZADE UNIVERSITY 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a cost function of C = 2L + 3K, where C is the total cost, L is the labor input, and K is the capital input. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the company wants to minimize its cost, what is the optimal level of labor and capital?
A. L = 50, K = 100
B. L = 100, K = 50
C. L = 200, K = 100
D. L = 100, K = 200
Question 2
A firm's profit function is given by π = R - C. If the firm's current revenue and cost are R = 300 and C = 200, respectively, what is the firm's current profit?
A. 100
B. 200
C. 300
D. 400
Question 3
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will
A. increase
B. decrease
C. remain constant
D. shift to the left
Question 4
A company has a portfolio of assets with the following returns: Asset A has a 20% chance of returning 10%, a 30% chance of returning 20%, and a 50% chance of returning 30%. Asset B has a 20% chance of returning 10%, a 30% chance of returning 20%, and a 50% chance of returning 30%. What is the expected return of the portfolio?
A. 15%
B. 20%
C. 25%
D. 30%
Question 5
A company is considering launching a new product. Which of the following is a key factor to consider when determining the feasibility of this venture?
A. The company's production costs
B. The demand for the product in the market
C. The company's marketing strategy
D. The company's financial resources
Question 6
A firm has the following production function: Q = 2L^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 produce 100 units of output, and the wage rate is ₦100 per hour, and the rental rate of capital is ₦200 per hour, what is the optimal level of labor?
A. 10 hours
B. 20 hours
C. 30 hours
D. 40 hours
Question 7
A consumer has a utility function of U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are ₦50 and ₦100 respectively, and the consumer's income is ₦1000, what is the optimal bundle of goods that maximizes the consumer's utility?
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 20, y = 2
Question 8
A bank's return on equity (ROE) is 12%. If the bank's net income is ₦120 million and its total equity is ₦1 billion, what is the bank's return on assets (ROA)?
A. 8%
B. 10%
C. 12%
D. 15%
Question 9
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the equilibrium price and quantity of a product in this market?
A. ₦100, 100 units
B. ₦120, 80 units
C. ₦150, 60 units
D. ₦180, 40 units
Question 10
A firm is considering two different modes of transportation: road and rail. The cost of transporting a unit of goods by road is ₦50, while the cost of transporting the same unit by rail is ₦30. If the firm can transport 100 units of goods per day, what is the total cost of transportation per day?
A. ₦5000
B. ₦6000
C. ₦7000
D. ₦8000
Question 11
A consumer has a budget of ₦1000 and a utility function given by U = 2x + 3y. If the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. (20, 10)
B. (40, 5)
C. (60, 0)
D. (0, 100)
Question 12
A company has purchased a liability insurance policy with a deductible of ₦50,000. If the company incurs a loss of ₦150,000, what is the company's net loss after deducting the deductible?
A. ₦100,000
B. ₦50,000
C. ₦0
D. ₦150,000
Question 13
In a just-in-time (JIT) inventory system, what is the primary goal of the reorder point (ROP)?
A. To minimize inventory costs
B. To maximize inventory turnover
C. To ensure that stockouts are avoided
D. To optimize the lead time
Question 14
A company has a portfolio of assets with the following returns: Asset A has a 20% chance of returning 10%, a 30% chance of returning 20%, and a 50% chance of returning 30%. Asset B has a 20% chance of returning 10%, a 30% chance of returning 20%, and a 50% chance of returning 30%. What is the standard deviation of the portfolio?
A. 5%
B. 10%
C. 15%
D. 20%
Question 15
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing marginal opportunity cost. However, this law is not applicable in the case of a firm that is a price-taker. Explain why.
A. Because the firm is a price-taker and cannot influence the market price.
B. Because the firm is a price-maker and can influence the market price.
C. Because the firm is a monopolist and has market power.
D. Because the firm is a monopsonist and has market power.

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: