POST UTME LEAD CITY UNIVERSITY 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer has a budget of ₦10,000 and wants to buy two goods, X and Y. The prices of the goods are ₦5,000 and ₦3,000, respectively. If the consumer spends all the budget, what is the maximum amount that can be spent on good X?
A. ₦2,000
B. ₦3,000
C. ₦4,000
D. ₦5,000
Question 2
A consumer has a budget of ₦10,000 and wants to buy two goods, X and Y. The prices of the goods are ₦5,000 and ₦3,000, respectively. If the consumer spends all the budget, what is the maximum amount that can be spent on good X?
A. ₦2,000
B. ₦3,000
C. ₦4,000
D. ₦5,000
Question 3
A company is considering a new marketing strategy that will increase its sales by 10%. However, the new strategy will also increase its costs by 15%. What will be the effect on the company's profit?
A. Profit will increase by 5%
B. Profit will decrease by 5%
C. Profit will remain unchanged
D. Profit will increase by 10%
Question 4
A company is considering a new marketing strategy that will increase its sales by 20%. However, the new strategy will also increase its costs by 25%. What will be the effect on the company's profit?
A. Profit will increase by 10%
B. Profit will decrease by 10%
C. Profit will remain unchanged
D. Profit will increase by 15%
Question 5
A firm has a warehouse with a capacity of 1000 units. The firm receives a shipment of 500 units of a commodity. The firm wants to store the commodity in the warehouse. What is the maximum number of units that can be stored in the warehouse?
A. 500
B. 750
C. 1000
D. 1250
Question 6
A firm produces two goods, A and B, using two inputs, Labour (L) and Capital (K). The production function for good A is given by ( Q_A = 2L^{0.5}K^{0.5} ), while that for good B is ( Q_B = 3L^{0.7}K^{0.3} ). If the firm has 100 units of Labour and 150 units of Capital, how many units of good A can it produce?
A. 50
B. 75
C. 100
D. 125
Question 7
A firm specializes in producing and exporting a particular commodity. The production function is given by Q = 100L^0.4K^0.6, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm wants to produce 200 units of the commodity, and the wage rate is ₦100 per hour, while the rental rate is ₦50 per unit of capital, what is the minimum cost of production?
A. ₦12500
B. ₦15000
C. ₦17500
D. ₦20000
Question 8
A company is considering two investment projects. Project X has a net present value (NPV) of ₦1,500,000 and a payback period of 5 years. Project Y has an NPV of ₦2,000,000 and a payback period of 4 years. Which project should the company choose?
A. Project X
B. Project Y
C. Both projects are equally attractive
D. Neither project is attractive
Question 9
A company is considering a new marketing strategy that will increase its sales by 15%. However, the new strategy will also increase its costs by 20%. What will be the effect on the company's profit?
A. Profit will increase by 5%
B. Profit will decrease by 5%
C. Profit will remain unchanged
D. Profit will increase by 10%
Question 10
A firm's warehousing and stock control system is most likely to be influenced by its
A. production costs
B. market demand
C. firm's size
D. transportation costs
Question 11
A firm's revenue function is given by R(x) = 100x - 2x^2. If the firm produces 20 units of output, what is the marginal revenue?
A. 1,600
B. 1,800
C. 2,000
D. 2,200
Question 12
A company is considering expanding its operations to a new market. What is the primary factor the company should consider?
A. Market size
B. Market growth rate
C. Competition
D. Government regulations
Question 13
A firm's introduction to commerce is most likely to be influenced by its
A. production costs
B. market demand
C. firm's size
D. government regulations
Question 14
A company's warehouse is designed to store 10,000 units of inventory. If the warehouse is currently 75% full, how many units of inventory can still be stored?
A. 7,500
B. 8,000
C. 9,000
D. 10,000
Question 15
A company is considering two different investment projects. Project A has a higher initial cost but generates higher returns over time. Project B has a lower initial cost but generates lower returns over time. Which project should the company choose?
A. Project A
B. Project B
C. Both projects are equally good
D. Neither project is good

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