POST UTME OSUSTECH 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's production function is given by Q = 100L^0.5K^0.25, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company increases labor input by 20% and capital input by 15%, what is the percentage change in the quantity produced?
A. 10%
B. 12%
C. 15%
D. 18%
Question 2
A company has the following revenue function: R = 2x + 3y. If the price of x is ₦2 and the price of y is ₦3, what is the optimal combination of x and y?
A. ( x = 2, y = 4 )
B. ( x = 4, y = 2 )
C. ( x = 6, y = 0 )
D. ( x = 0, y = 4 )
Question 3
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the equilibrium price and quantity of a product in this market? Assume that the market is in equilibrium and the price is ₦100.
A. ( Q = 100, P = ₦100 )
B. ( Q = 50, P = ₦200 )
C. ( Q = 200, P = ₦50 )
D. ( Q = 150, P = ₦66.67 )
Question 4
A company has a warehouse with a capacity of 10,000 units. The company receives an order for 8,000 units and has a safety stock of 2,000 units. What is the total stock level in the warehouse?
A. 6,000
B. 8,000
C. 10,000
D. 12,000
Question 5
The _______________ of a company is the amount of its share capital that has been subscribed by its members.
A. Authorized
B. Issued
C. Paid-up
D. Subscribed
Question 6
A firm's production function is given by Q = 2L^0.5 + 3K^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 10 units of output, how much labor should it hire?
A. 5 units of labor
B. 10 units of labor
C. 15 units of labor
D. 20 units of labor
Question 7
A sole trader's business is not a separate legal entity from its owner. What is the implication of this?
A. The sole trader is personally liable for business debts
B. The sole trader can transfer ownership to another person
C. The sole trader's business is taxed separately from their personal income
D. The sole trader's business is not subject to bankruptcy laws
Question 8
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 compared to other countries. What is the opportunity cost of producing a good?
A. The cost of producing the good in terms of other goods that could have been produced instead
B. The cost of producing the good in terms of the resources used to produce it
C. The cost of importing the good from another country
D. The cost of storing the good in a warehouse
Question 9
A firm is considering two investment projects: Project A and Project B. Project A has a net present value (NPV) of ₦1000, and Project B has an NPV of ₦1200. If the firm's cost of capital is 10%, what is the internal rate of return (IRR) of the firm?
A. 10%
B. 12%
C. 15%
D. 18%
Question 10
A sole trader has a business income of ₦500,000 and a business expense of ₦200,000. What is the business profit?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 11
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing
A. Diminishing Returns
B. Increasing Opportunity Costs
C. Law of Supply
D. Marginal Revenue
Question 12
A firm has a budget constraint of 1000 units of currency, and it wants to maximize its profit. The firm's revenue function is given by R = 2Q, and its cost function is given by C = 3Q^2. What is the firm's optimal quantity of output?
A. 10 units of output
B. 20 units of output
C. 30 units of output
D. 40 units of output
Question 13
A company has a cash flow of ₦500,000 per year for 5 years. If the company wants to raise ₦2,500,000 to finance the project, what is the present value of the cash flows?
A. ₦1,500,000
B. ₦2,000,000
C. ₦2,500,000
D. ₦3,000,000
Question 14
The _______________ of a company is the sum of its issued share capital.
A. Authorized
B. Issued
C. Paid-up
D. Subscribed
Question 15
A bank has a reserve requirement of 20% and a cash reserve of ₦100,000. If the bank wants to increase its lending capacity by ₦50,000, what is the required increase in deposits?
A. ₦25,000
B. ₦50,000
C. ₦75,000
D. ₦100,000

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