POST UTME ESUT 2022 Commerce | Objective

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Question 1
A firm is considering the following two investment opportunities: Opportunity A has a 10% chance of earning a return of ₦1,000,000 and a 90% chance of earning a return of ₦0. Opportunity B has a 20% chance of earning a return of ₦500,000 and an 80% chance of earning a return of ₦0. Which opportunity has a higher expected return?
A. Opportunity A
B. Opportunity B
C. Both opportunities have the same expected return
D. Neither opportunity has a higher expected return
Question 2
A firm is considering the following two investment opportunities: Opportunity A has a 5% chance of earning a return of ₦500,000 and a 95% chance of earning a return of ₦0. Opportunity B has a 10% chance of earning a return of ₦250,000 and a 90% chance of earning a return of ₦0. Which opportunity has a higher expected return?
A. Opportunity A
B. Opportunity B
C. Both opportunities have the same expected return
D. Neither opportunity has a higher expected return
Question 3
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm increases labor from 4 units to 9 units, and capital from 9 units to 16 units, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 4
A company has a warehouse with a capacity of 1000 units. The company's demand function is given by D(p) = 2000 - 5p. If the company wants to maximize its profit, what is the optimal price?
A. 100
B. 150
C. 200
D. 250
Question 5
The Consumer Protection Act of 1999 provides for the establishment of the National Consumer Protection Agency (NCPA). Which of the following is a primary function of the NCPA?
A. To investigate complaints from consumers
B. To provide education and awareness on consumer rights
C. To establish standards for consumer products
D. To regulate consumer credit
Question 6
A company is considering two different production processes for its product. Process A requires an initial investment of ₦1,500,000 and has a variable cost of ₦200 per unit. Process B requires an initial investment of ₦2,000,000 and has a variable cost of ₦150 per unit. If the company produces 10,000 units, which process will result in lower total costs?
A. Process A
B. Process B
C. Both processes will result in the same total costs
D. Neither process will result in lower total costs
Question 7
A company is considering two different transportation options for its products. Option A involves a fixed cost of ₦500,000 and a variable cost of ₦200 per unit transported. Option B has a fixed cost of ₦300,000 and a variable cost of ₦300 per unit transported. If the company needs to transport 5,000 units, which option is more cost-effective?
A. Option A
B. Option B
C. Both options have the same cost-effectiveness
D. Neither option is cost-effective
Question 8
A firm's revenue function is given by R = 100Q - 2Q^2, where R is revenue and Q is quantity sold. If the firm sells 10 units, what is the marginal revenue?
A. ₦800
B. ₦900
C. ₦1000
D. ₦1100
Question 9
A company has a fire insurance policy with a premium of ₦50,000. The company pays a claim of ₦200,000. What is the benefit ratio?
A. 2:1
B. 3:1
C. 4:1
D. 5:1
Question 10
A warehouse has a storage capacity of 10,000 units. The warehouse is currently 70% full, with 7,000 units stored. If 1,500 new units are received, what is the new percentage of the warehouse that is full?
A. 50%
B. 55%
C. 60%
D. 65%
Question 11
A company has a policy of paying its employees a 10% bonus on their annual salaries. If an employee's salary is ₦500,000, what is the total amount the employee will receive at the end of the year?
A. ₦550,000
B. ₦500,000
C. ₦450,000
D. ₦550,000
Question 12
A firm's cost function is given by C = 50 + 10Q, where C is cost and Q is quantity produced. If the firm produces 5 units, what is the total cost?
A. ₦250
B. ₦300
C. ₦350
D. ₦400
Question 13
A company has a budget of ₦1,500,000 to spend on advertising. If the cost of advertising on radio is ₦500,000 and the cost of advertising on television is ₦750,000, what is the maximum amount the company can spend on advertising on the internet?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 14
A company has a warehouse with a storage capacity of 10,000 units. The warehouse is currently 70% full, with 7,000 units stored. If 1,500 new units are received, what is the new percentage of the warehouse that is full?
A. 50%
B. 55%
C. 60%
D. 65%
Question 15
A company has a market share of 30% in the industry. If the industry grows by 10% in a year, what will be the company's market share in the next year?
A. 20%
B. 25%
C. 30%
D. 35%

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