POST UTME ELIZADE UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm has a production function given by Q = 2L^(1/2)K^(1/2), where Q is the quantity produced, L is labor, and K is capital. If the firm's labor and capital are increased by 20% and 15% respectively, what is the new production function?
A. Q = 2.4L^(1/2)K^(1/2)
B. Q = 2.5L^(1/2)K^(1/2)
C. Q = 2.6L^(1/2)K^(1/2)
D. Q = 2.7L^(1/2)K^(1/2)
Question 2
In a perfectly competitive market, the demand curve for a firm's product is its
A. marginal revenue curve
B. marginal cost curve
C. average revenue curve
D. average cost curve
Question 3
A bank's cash management system uses the float method to manage its cash reserves. Which of the following is a risk associated with this method?
A. Inadequate cash reserves
B. Overdraft fees
C. Insufficient liquidity
D. Increased interest rates
Question 4
The following diagram shows a circuit with a battery, a resistor, and a switch. What is the current flowing through the circuit when the switch is closed?
A. 5A
B. 10A
C. 15A
D. 20A
Question 5
A firm has a production cost function given by C = 2Q + 100, where C is the cost and Q is the quantity produced. If the firm produces 50 units, what is the total cost?
A. 200
B. 250
C. 300
D. 350
Question 6
A 'Transportation Mode' that involves the movement of goods by land is known as:
A. Rail Transport
B. Road Transport
C. Air Transport
D. Water Transport
Question 7
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is the quantity produced, L is labor, and K is capital. If the firm's labor and capital are increased by 20% and 15% respectively, what is the percentage change in the quantity produced?
A. 10%
B. 12%
C. 15%
D. 18%
Question 8
A company has a fleet of 10 trucks that transport goods from a warehouse to a distribution center. The company uses a routing algorithm to determine the most efficient route for each truck. If the company wants to minimize the total distance traveled by all trucks, what is the optimal routing strategy?
A. The company should assign each truck to a different route, and the routes should be as far apart as possible.
B. The company should assign each truck to a different route, and the routes should be as close together as possible.
C. The company should assign each truck to the same route, and the route should be as long as possible.
D. The company should assign each truck to the same route, and the route should be as short as possible.
Question 9
A company's production function is given by Q = 100L^0.5K^0.25. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the company wants to produce 100 units of output, how much will it cost?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 10
The Central Bank of Nigeria (CBN) uses the monetary policy instrument of Open Market Operations (OMO) to influence the money supply in the economy. Which of the following is a correct statement about OMO?
A. OMO involves the sale of government securities to commercial banks.
B. OMO involves the purchase of government securities from commercial banks.
C. OMO involves the sale of government securities to the general public.
D. OMO involves the purchase of government securities from the general public.
Question 11
A company's sole trader is considering purchasing a new vehicle for business use. The vehicle costs ₦5 million and has a 5-year warranty. What type of insurance policy would the sole trader most likely purchase to cover the vehicle?
A. Comprehensive Insurance
B. Third-Party Insurance
C. Fire and Theft Insurance
D. Public Liability Insurance
Question 12
A company is considering outsourcing its production to a foreign country. What is the correct interpretation of this scenario?
A. The company is reducing its costs.
B. The company is increasing its costs.
C. The company is reducing its production.
D. The company is increasing its production.
Question 13
A company's financial statement shows a net income of ₦1,000,000 and a total equity of ₦5,000,000. What is the return on equity (ROE) of the company?
A. 20%
B. 25%
C. 30%
D. 35%
Question 14
A consumer has a budget of ₦1000 to spend on two goods, X and Y. The price of good X is ₦200, and the price of good Y is ₦300. If the consumer spends all of their budget on the two goods, what is the maximum amount of good Y that the consumer can buy?
A. 2
B. 3
C. 4
D. 5
Question 15
A consumer protection law that prohibits false or misleading advertising is known as a:
A. Deceptive Advertising Law
B. Truth-in-Advertising Law
C. Consumer Protection Act
D. Fair Trade Law

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