POST UTME LASU 2017 Commerce | Objective

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Question 1
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm's labor input increases by 20% and capital input remains constant, what is the percentage change in the quantity produced?
A. 10%
B. 20%
C. 30%
D. 40%
Question 2
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal revenue function is MR = 200 - 4P, what is the price elasticity of demand?
A. 0.5
B. 1
C. 2
D. 3
Question 3
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost. Which of the following is a correct example of comparative advantage?
A. Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 100 units of good Y.
B. Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 50 units of good Y.
C. Country A produces 50 units of good X and 100 units of good Y, while Country B produces 100 units of good X and 50 units of good Y.
D. Country A produces 50 units of good X and 50 units of good Y, while Country B produces 100 units of good X and 100 units of good Y.
Question 4
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company wants to increase its production by 20% while keeping labor input constant, what percentage increase in capital input is required?
A. 16%
B. 20%
C. 24%
D. 28%
Question 5
A company is considering the use of a foreign trade agreement. Which of the following is a key benefit of such an agreement?
A. Increased market share
B. Improved product quality
C. Reduced tariffs
D. Enhanced customer satisfaction
Question 6
A company is considering the use of just-in-time (JIT) inventory management system. Which of the following is a major advantage of JIT?
A. Reduced inventory costs
B. Improved product quality
C. Increased production efficiency
D. Enhanced customer satisfaction
Question 7
A firm's cost function is given by C(L,K) = 2L + 3K. If the firm's current labor and capital inputs are L = 10 and K = 5, what is the firm's current total cost?
A. 50
B. 60
C. 70
D. 80
Question 8
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's revenue function is given by R = PQ, what is the firm's marginal revenue function?
A. MR = 100 - 2P
B. MR = 2P
C. MR = 100 + 2P
D. MR = 100 - P
Question 9
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm's labor input increases by 20% and capital input remains constant, what is the percentage change in the quantity produced?
A. 10%
B. 20%
C. 30%
D. 40%
Question 10
The following is a characteristic of a partnership:
A. Limited liability
B. Unlimited liability
C. Partnership agreement
D. Private limited company
Question 11
A firm's production function is given by Q = 2L^0.5 + 3K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, what is the firm's current output?
A. 20
B. 25
C. 30
D. 35
Question 12
A consumer's indifference curve is given by the equation u(x,y) = 2x + 3y. If the consumer's current budget constraint is 4x + 2y = 20, what is the consumer's optimal bundle?
A. (4,6)
B. (6,4)
C. (8,2)
D. (2,8)
Question 13
A consumer purchases a product from a store, but upon using it, discovers that it is defective. The consumer sues the manufacturer for breach of contract. Which of the following is a valid defense for the manufacturer?
A. The consumer is estopped from bringing the action because they are aware of the defect
B. The manufacturer is not liable because the defect was caused by a third party
C. The consumer failed to provide notice of the defect within the required time period
D. The manufacturer is not liable because the product was used for a purpose other than its intended use
Question 14
In a perfectly competitive market, the law of diminishing marginal utility is most relevant to the production of which of the following?
A. Firms
B. Households
C. Markets
D. Government
Question 15
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 5%
B. 10%
C. 15%
D. 20%

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