POST UTME IGBINEDION UNIVERSITY 2025 Commerce | Objective

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Question 1
A firm specializes in producing a single product, which is a type of commodity. The firm's production function is given by the equation ( Q = 10L^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 produce 100 units of the commodity, and it has 4 units of labor and 9 units of capital available, what is the minimum amount of capital it must have to produce 100 units?
A. 5
B. 6
C. 7
D. 8
Question 2
A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 70% full. If 500 units are added to the warehouse every day, how many days will it take to fill the warehouse to capacity?
A. 10 days
B. 15 days
C. 20 days
D. 25 days
Question 3
A firm's production function is given by the Cobb-Douglas production function: ( Q = 10K^{ rac{1}{2}}L^{ rac{1}{2}} ), where Q is the quantity produced, K is the capital stock, and L is the labor force. If the firm's capital stock increases by 20% and the labor force remains constant, what is the percentage change in the quantity produced?
A. 10%
B. 20%
C. 30%
D. 40%
Question 4
A company is considering two different investment opportunities. Opportunity A has a 10% chance of returning 100,000 and a 90% chance of returning 0. Opportunity B has a 20% chance of returning 150,000 and an 80% chance of returning 0. Which opportunity has a higher expected return?
A. Opportunity A
B. Opportunity B
C. Opportunity A and Opportunity B are equally likely
D. Neither opportunity has a higher expected return
Question 5
A company is considering the use of a new insurance policy to protect against business risks. The company is evaluating the costs and benefits of different types of insurance policies, including liability insurance, property insurance, and business interruption insurance. Which of the following is the most important factor to consider when making this decision?
A. The cost of the insurance policy
B. The level of risk protection provided by the policy
C. The coverage limits of the policy
D. The deductible amount of the policy
Question 6
An insurance company offers a policy that covers a maximum of ₦5 million in case of theft. The premium for the policy is 5% of the maximum coverage. If a customer pays the premium for 5 years, how much will they have paid in total?
A. ₦250,000
B. ₦1,250,000
C. ₦2,500,000
D. ₦5,000,000
Question 7
A company has a fleet of 10 trucks that travel 200 km per day. If the cost of fuel per truck per day is ₦5,000, what is the total daily fuel cost for the entire fleet?
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 8
A company's transport policy involves the use of vehicles for business purposes. Which of the following is a benefit of using company vehicles?
A. Increased Productivity
B. Improved Customer Service
C. Reduced Fuel Costs
D. Enhanced Brand Image
Question 9
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. If the market price is ₦100, and the firm's marginal revenue is ₦80, what is the firm's marginal cost?
A. ₦60
B. ₦80
C. ₦100
D. ₦120
Question 10
A firm exports a product to a foreign country. The firm's export function is given by the equation ( E = 2X^2 + 3Y^2 ), where E is the export quantity, X is the domestic price, and Y is the foreign price. If the domestic price is 10 units and the foreign price is 5 units, what is the export quantity?
A. 50
B. 60
C. 70
D. 80
Question 11
A company's marketing strategy involves a mix of advertising and promotion. Which of the following is an example of a promotional strategy?
A. Sponsorship
B. Public Relations
C. Direct Marketing
D. Event Marketing
Question 12
A consumer protection agency wants to regulate the prices of goods in a market. If the demand function for a product is given by Q = 1000 - 2P, where Q is the quantity demanded and P is the price, and the supply function is given by Q = 2P - 100, what is the equilibrium price?
A. ₦200
B. ₦250
C. ₦300
D. ₦350
Question 13
A firm's demand function is given by the equation: ( Q = 100 - 2P ), where Q is the quantity demanded and P is the price. If the firm's revenue function is given by the equation: ( R = PQ ), what is the firm's marginal revenue function?
A. ( MR = 100 - 2P )
B. ( MR = 2P )
C. ( MR = -2P )
D. ( MR = 100 + 2P )
Question 14
A firm is considering entering a new market. The firm's marketing manager estimates that the market size is 100,000 units, and the firm's market share is 20%. What is the firm's sales revenue?
A. ₦20,000,000
B. ₦25,000,000
C. ₦30,000,000
D. ₦35,000,000
Question 15
A bank's balance sheet is given by the equation ( AS = D + C ), where AS is the assets, D is the deposits, and C is the capital. If the bank has 100 units of assets, 50 units of deposits, and 20 units of capital, what is the bank's capital?
A. 10
B. 15
C. 20
D. 25

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