POST UTME REDEEMERS UNIVERSITY 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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 2
A consumer has a utility function given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the price of good x is ₦50 per unit and the price of good y is ₦100 per unit, and the consumer's income is ₦1000, what is the optimal bundle of goods?
A. x = 10, y = 5
B. x = 5, y = 10
C. x = 15, y = 3
D. x = 20, y = 2
Question 3
A company's marketing strategy involves creating a new product to meet the changing needs of its customers. What type of marketing strategy is this?
A. Product Differentiation
B. Market Segmentation
C. Product Development
D. Market Penetration
Question 4
A company's financial statement shows a net loss of ₦250,000. What is the accounting treatment for this loss?
A. Deduct the loss from the company's retained earnings
B. Transfer the loss to the company's reserves
C. Deduct the loss from the company's profits
D. Transfer the loss to the company's shareholders
Question 5
In a perfectly competitive market, the supply curve is downward-sloping because
A. Firms are willing to supply more at a lower price
B. Firms are willing to supply less at a higher price
C. Firms are willing to supply more at a higher price
D. Firms are willing to supply less at a lower price
Question 6
A firm has a production function given by Q = 2L + 3K, where Q is the quantity produced, L is the labor input, and K is the capital input. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the firm wants to minimize its cost, what is the optimal level of labor and capital?
A. L = 50, K = 100
B. L = 100, K = 50
C. L = 200, K = 20
D. L = 150, K = 30
Question 7
A bank's cash reserve ratio is 10%. If the bank has a cash reserve of ₦100,000, what is the maximum amount of credit it can extend to customers?
A. ₦900,000
B. ₦1,000,000
C. ₦1,100,000
D. ₦1,200,000
Question 8
A company specializes in producing and selling high-quality leather goods. The company's production process involves several stages, including cutting, stitching, and finishing. The company uses a just-in-time (JIT) inventory system to manage its inventory levels. Which of the following is a benefit of the JIT system?
A. Reduced inventory costs
B. Improved product quality
C. Increased production efficiency
D. Enhanced customer satisfaction
Question 9
A company specializes in producing high-quality leather goods. It has two production lines: one for shoes and the other for handbags. The company uses a just-in-time inventory system to manage its stock. If the demand for shoes is 500 units per month and the production rate is 600 units per month, what is the maximum inventory level of shoes that the company can hold?
A. 200 units
B. 300 units
C. 400 units
D. 500 units
Question 10
A company has a production function Q = 2L^0.4K^0.6, where Q is output, L is labor, and K is capital. If labor increases by 20% and capital remains constant, what is the percentage change in output?
A. +10%
B. +20%
C. +30%
D. +40%
Question 11
A firm's cost function is given by C = 100 + 2L + 3K, where C is cost, L is labor, and K is capital. If labor increases by 10% and capital remains constant, what is the percentage change in cost?
A. +5%
B. +10%
C. +15%
D. +20%
Question 12
A firm specializing in the production of textiles has the following cost function: C(x) = 2x^2 + 100x + 5000. If the firm's revenue function is R(x) = 3x^2 - 20x + 100, where x is the number of units produced, what is the break-even point?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 13
A company has the following balance sheet: Assets = ₦100,000, Liabilities = ₦50,000, and Equity = ₦50,000. If the company issues 10,000 shares at ₦5 per share, what is the new equity?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 14
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the firm's current output?
A. 24
B. 32
C. 48
D. 64
Question 15
A firm's revenue function is given by R = 2Q^2. If the firm's current output is Q = 4, what is the firm's current revenue?
A. 16
B. 32
C. 64
D. 128

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