POST UTME IGBINEDION UNIVERSITY 2020 Commerce | Objective

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Question 1
A country's trade balance is given by TB = X - M, where TB is trade balance, X is exports, and M is imports. If exports increase by 15% and imports decrease by 10%, what is the percentage change in trade balance?
A. 5%
B. 10%
C. 15%
D. 20%
Question 2
A business purchases a liability insurance policy to protect against potential lawsuits. Which of the following is a key feature of this type of insurance?
A. The policy covers only the business's assets
B. The policy covers only the business's liabilities
C. The policy covers both the business's assets and liabilities
D. The policy does not cover any of the business's assets or liabilities
Question 3
A firm's production function is given by Q = 2L^0.5H^0.5. If the firm's current labor and capital inputs are L = 16 and H = 9, respectively, what is the marginal product of labor?
A. 1
B. 2
C. 3
D. 4
Question 4
A company's production function is given by Q = 2L^2 + 3K, where Q is output, L is labor, and K is capital. If labor increases by 20% and capital remains constant, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 5
A business uses a just-in-time inventory system to manage its stock levels. Which of the following is a benefit of this approach?
A. Reduced inventory costs associated with holding excess stock
B. Improved visibility and control over inventory levels
C. Enhanced ability to respond to changes in demand
D. Increased flexibility in managing the supply chain
Question 6
A sole trader, Mr. A, has a business income of ₦500,000 and a business expense of ₦200,000. What is his business profit?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 7
A company's marketing strategy involves a 10% discount on all products. If a product originally costs ₦1,000, what is the new price after the discount?
A. ₦900
B. ₦950
C. ₦1,000
D. ₦1,050
Question 8
A firm's cost function is given by C(L,H) = 2L + 3H. If the firm's current labor and capital inputs are L = 4 and H = 6, respectively, what is the total cost of production?
A. ₦20
B. ₦22
C. ₦24
D. ₦26
Question 9
A container ship has a capacity of 100,000 metric tons. If it is carrying a cargo of 80,000 metric tons, what percentage of its capacity is the cargo occupying?
A. 80%
B. 85%
C. 90%
D. 95%
Question 10
A company is considering two different investment projects. Project A has a 10% chance of generating ₦100,000 and a 90% chance of generating ₦0. Project B has a 20% chance of generating ₦50,000 and an 80% chance of generating ₦0. Which project has a higher expected return?
A. Project A
B. Project B
C. Both projects have the same expected return
D. Neither project has a higher expected return
Question 11
A company has a policy of paying its employees a fixed salary of ₦50,000 per month, regardless of the number of hours worked. If the company has 10 employees, and each employee works for 20 hours in a week, what is the total cost of labor for the company in a week?
A. ₦1,000,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦2,000,000
Question 12
A firm's revenue function is given by R(L,H) = 2LH. If the firm's current labor and capital inputs are L = 3 and H = 5, respectively, what is the marginal revenue with respect to labor?
A. 5
B. 10
C. 15
D. 20
Question 13
In a perfectly competitive market, the law of diminishing marginal utility implies that the marginal revenue product of a firm's last unit of labor will be less than the marginal product of that unit. What is the consequence of this on the firm's labor demand?
A. The firm will demand more labor to maximize profits.
B. The firm will demand less labor to minimize costs.
C. The firm will demand the same amount of labor to maintain market share.
D. The firm will demand more labor to increase market share.
Question 14
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the price increases by 10%, what is the percentage change in quantity demanded?
A. -10%
B. -20%
C. -30%
D. -40%
Question 15
A firm has a production function given by 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 it has 4 units of labor, how many units of capital does it need?
A. 4
B. 8
C. 16
D. 32

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