POST UTME PAN-ATLANTIC UNIVERSITY 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is considering two investment projects, A and B. Project A has a 10% chance of success, and if successful, will generate a profit of 100. Project B has a 20% chance of success, and if successful, will generate a profit of 50. What is the expected value of each project?
A. Project A: 10, Project B: 10
B. Project A: 10, Project B: 20
C. Project A: 20, Project B: 10
D. Project A: 20, Project B: 20
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 10% and 20%, respectively, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 3
A company's production function is given by (Q = 2L^2 + 3K^2), where (L) is labor and (K) is capital. If the company wants to produce 100 units of output, how many units of labor are required?
A. (L = 5)
B. (L = 10)
C. (L = 15)
D. (L = 20)
Question 4
A business imports goods worth ₦1,000,000 from a foreign country. If the exchange rate is 1 USD = ₦500, and the import duty is 10% of the total value, what is the total amount paid by the business?
A. ₦1100000
B. ₦1050000
C. ₦1000000
D. ₦950000
Question 5
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will
A. decrease
B. increase
C. remain constant
D. move in the opposite direction
Question 6
A consumer has a budget constraint of 100, and the prices of two goods are 10 and 20, respectively. If the consumer's indifference curve is tangent to the budget line, what is the consumer's optimal consumption bundle?
A. (10, 5)
B. (5, 10)
C. (15, 3)
D. (3, 15)
Question 7
The diagram below shows the production possibilities frontier (PPF) for a country.
A. The PPF shows the maximum possible output of two goods that a country can produce given the available resources.
B. The PPF shows the minimum possible output of two goods that a country can produce given the available resources.
C. The PPF shows the opportunity cost of producing one good in terms of the other good.
D. The PPF shows the law of diminishing marginal returns.
Question 8
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 10% and 20%, respectively, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 9
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 the good?
A. (P = 10, Q = 100)
B. (P = 20, Q = 50)
C. (P = 15, Q = 75)
D. (P = 25, Q = 25)
Question 10
The concept of marketing is closely related to the idea of advertising. Explain how advertising helps to promote a product.
A. Advertising helps to promote a product by creating awareness and generating interest.
B. Advertising helps to promote a product by building brand loyalty and customer retention.
C. Advertising helps to promote a product by increasing sales and revenue.
D. Advertising helps to promote a product by reducing costs and improving efficiency.
Question 11
A bank offers a loan of ₦100,000 at an annual interest rate of 12%. If the loan is to be repaid in 5 years, what is the monthly installment?
A. ₦2,500
B. ₦3,000
C. ₦3,500
D. ₦4,000
Question 12
A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 70% full. If the company receives a new shipment of 2,000 units, what is the new percentage of the warehouse that is full?
A. 50%
B. 60%
C. 70%
D. 80%
Question 13
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?
A. ₦100, 100 units
B. ₦120, 80 units
C. ₦150, 60 units
D. ₦180, 40 units
Question 14
The diagram below shows the production process for a firm.
A. The production process consists of raw materials, labor, capital, and entrepreneurship.
B. The production process consists of raw materials, labor, capital, and technology.
C. The production process consists of raw materials, labor, capital, and management.
D. The production process consists of raw materials, labor, capital, and marketing.
Question 15
A country's trade balance is given by the equation TB = X - M, where TB is the trade balance, X is exports, and M is imports. If the country's exports are 100 and imports are 80, what is the trade balance?
A. 10
B. 20
C. 30
D. 40

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