Practice post utme osustech commerce 2023 Past Questions

Question 1

In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing

Correct A. Diminishing Returns

B. Increasing Opportunity Costs

C. Law of Supply

D. Marginal Revenue

Correct Answer: A

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Question 2

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the price of labor is ₦100 per unit, and the price of capital is ₦150 per unit, what is the minimum cost of production?

A. ₦2000

Correct B. ₦2500

C. ₦3000

D. ₦3500

Correct Answer: B

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Question 3

A company has a portfolio of assets with the following returns: 5% for Asset A, 7% for Asset B, and 9% for Asset C. If the company wants to create a portfolio with an expected return of 8%, and the standard deviation of the portfolio is 12%, what is the optimal weight of Asset A in the portfolio?

A. 0.2

B. 0.3

Correct C. 0.4

D. 0.5

Correct Answer: C

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Question 4

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%

Correct B. 12%

C. 15%

D. 18%

Correct Answer: B

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Question 5

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

Correct C. ₦2,500,000

D. ₦3,000,000

Correct Answer: C

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Question 6

A sole trader's business is registered under the _______________ Act.

Correct A. Companies and Allied Matters Act

B. Trade Marks Act

C. Consumer Protection Act

D. Banking and Other Financial Institutions Act

Correct Answer: A

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Question 7

The _______________ of a company is the sum of its issued share capital.

A. Authorized

Correct B. Issued

C. Paid-up

D. Subscribed

Correct Answer: B

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Question 8

The _______________ of a company is the amount of its share capital that has been paid to the company.

A. Authorized

B. Issued

Correct C. Paid-up

D. Subscribed

Correct Answer: C

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Question 9

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

Correct D. Subscribed

Correct Answer: D

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Question 10

The _______________ of a company is the amount of its share capital that has been issued to its members.

A. Authorized

Correct B. Issued

C. Paid-up

D. Subscribed

Correct Answer: B

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Question 11

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%

Correct C. 15%

D. 18%

Correct Answer: C

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Question 12

A firm is considering two investment projects. Project A has a 10% chance of generating a profit of ₦100,000 and a 90% chance of generating a profit of ₦50,000. Project B has a 20% chance of generating a profit of ₦150,000 and an 80% chance of generating a profit of ₦20,000. Which project has a higher expected profit?

Correct A. Project A

B. Project B

C. Both projects have the same expected profit

D. Neither project has a higher expected profit

Correct Answer: A

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Question 13

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

Correct C. 10,000

D. 12,000

Correct Answer: C

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Question 14

A sole trader has a business income of ₦500,000 and a business expense of ₦200,000. What is the business profit?

Correct A. ₦300,000

B. ₦400,000

C. ₦500,000

D. ₦600,000

Correct Answer: A

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Question 15

A company has a production function 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%

Correct C. 15%

D. 18%

Correct Answer: C

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Question 16

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 )

Correct D. ( Q = 150, P = ₦66.67 )

Correct Answer: D

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Question 17

A company has the following probability distribution for the number of units it sells in a day: | Units Sold | Probability | | --- | --- | | 0 | 0.1 | | 1 | 0.3 | | 2 | 0.2 | | 3 | 0.1 | | 4 | 0.3 | What is the expected value of the number of units sold in a day?

Correct A. ( E(X) = 1.5 )

B. ( E(X) = 2.5 )

C. ( E(X) = 3.5 )

D. ( E(X) = 4.5 )

Correct Answer: A

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Question 18

A company has the following budget constraint: 2x + 3y = 12. If the price of x is ₦2 and the price of y is ₦3, what is the optimal combination of x and y?

Correct A. ( x = 2, y = 4 )

B. ( x = 4, y = 2 )

C. ( x = 6, y = 0 )

D. ( x = 0, y = 4 )

Correct Answer: A

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Question 19

A company has the following production function: Q = 2L + 3K. If the price of labor is ₦10 and the price of capital is ₦20, what is the optimal combination of labor and capital?

Correct A. ( L = 2, K = 3 )

B. ( L = 3, K = 2 )

C. ( L = 4, K = 1 )

D. ( L = 1, K = 4 )

Correct Answer: A

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Question 20

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?

Correct A. ( x = 2, y = 4 )

B. ( x = 4, y = 2 )

C. ( x = 6, y = 0 )

D. ( x = 0, y = 4 )

Correct Answer: A

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Question 21

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?

Correct 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

Correct Answer: A

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Question 22

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

Correct B. 10 units of labor

C. 15 units of labor

D. 20 units of labor

Correct Answer: B

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Question 23

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

Correct B. 20 units of output

C. 30 units of output

D. 40 units of output

Correct Answer: B

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Question 24

A firm's inventory system is given by the following differential equation: dI/dt = 2I - 3Q, where I is the inventory level, Q is the quantity sold, and t is time. If the initial inventory level is 100 units, and the quantity sold is 20 units per time period, what is the inventory level after 5 time periods?

A. 500 units

Correct B. 600 units

C. 700 units

D. 800 units

Correct Answer: B

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Question 25

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, and it has a labor input of 4 units, how much capital should it hire?

A. 5 units of capital

Correct B. 10 units of capital

C. 15 units of capital

D. 20 units of capital

Correct Answer: B

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POST UTME OSUSTECH 2023 Commerce | Objective

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