POST UTME OAU 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a production function given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the amount of labor used, and K is the amount of capital used. If the company has 100 units of labor and 50 units of capital, how much should it produce to minimize cost?
A. Q = 20
B. Q = 25
C. Q = 30
D. Q = 35
Question 2
A company has a warehouse with a capacity to store 10,000 units of goods. The warehouse is currently 70% full. If 500 units of goods are received, what will be the new percentage of the warehouse that is full?
A. 60%
B. 65%
C. 70%
D. 75%
Question 3
A consumer has a budget of ₦10,000 and a utility function given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are ₦2,000 and ₦3,000 respectively, how much of each good should the consumer buy to maximize utility?
A. x = 2, y = 3
B. x = 3, y = 2
C. x = 4, y = 1
D. x = 1, y = 4
Question 4
A bank offers a 5-year fixed deposit account with an interest rate of 8% per annum compounded annually. If ₦ 10,000 is deposited, what will be the future value after 5 years?
A. ₦ 16,386.16
B. ₦ 16,384.16
C. ₦ 16,385.16
D. ₦ 16,387.16
Question 5
A consumer has a budget of ₦10,000 and a utility function given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the two goods are ₦2,000 and ₦3,000 respectively, how much of each good should the consumer buy to maximize utility?
A. x = 2, y = 3
B. x = 3, y = 2
C. x = 4, y = 1
D. x = 1, y = 4
Question 6
A ship is traveling from Lagos to Port Harcourt. The distance between the two cities is 500 km. If the ship travels at an average speed of 50 km/h, how many hours will it take to cover the distance?
A. 10 hours
B. 11 hours
C. 12 hours
D. 13 hours
Question 7
A company has a policy of paying its employees a 10% bonus on their annual salaries. If an employee's annual salary is ₦ 100,000, what will be the bonus amount?
A. ₦ 10,000
B. ₦ 9,000
C. ₦ 11,000
D. ₦ 12,000
Question 8
In a market economy, the law of supply and demand determines the price of a commodity. However, the government may intervene to regulate prices in order to protect consumers. Which of the following is a potential consequence of government price regulation?
A. Increased competition among firms
B. Reduced consumer choice
C. Inefficient allocation of resources
D. Increased government revenue
Question 9
In a just-in-time (JIT) inventory system, what is the primary goal of the warehouse manager?
A. To minimize inventory costs
B. To maximize storage capacity
C. To reduce lead times
D. To increase inventory turnover
Question 10
A company produces two products, A and B, using two inputs, labor and capital. The production function for product A is given by Q_A = 2L^0.5K^0.5, where Q_A is the quantity of product A produced, L is the amount of labor used, and K is the amount of capital used. The production function for product B is given by Q_B = 3L^0.7K^0.3. If the company has 100 units of labor and 50 units of capital, how many units of product A and product B should the company produce to maximize profit?
A. Q_A = 20, Q_B = 30
B. Q_A = 25, Q_B = 35
C. Q_A = 30, Q_B = 20
D. Q_A = 35, Q_B = 25

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