POST UTME UI 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm wants to produce 16 units of output, and it has 4 units of labor available, how many units of capital does it need to produce this output?
A. 4
B. 8
C. 16
D. 32
Question 2
The concept of 'caveat emptor' is relevant in?
A. Sale of Goods Act
B. Consumer Protection Act
C. Contract Law
D. Tort Law
Question 3
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm wants to produce 16 units of output, and it has 4 units of labor available, how many units of capital does it need to produce this output?
A. 4
B. 8
C. 16
D. 32
Question 4
A company has the following cost structure: Fixed costs = ₦100,000; Variable costs = ₦50 per unit. If the selling price is ₦75 per unit, what is the break-even point?
A. 1,000 units
B. 2,000 units
C. 3,000 units
D. 4,000 units
Question 5
A marketing manager is developing a campaign to promote a new product. Which of the following is a key consideration when selecting a target market?
A. The size of the market
B. The growth potential of the market
C. The level of competition in the market
D. The demographic characteristics of the market
Question 6
A firm has the following balance sheet: Assets = ₦500,000; Liabilities = ₦200,000; Equity = ₦300,000. If the firm issues new shares worth ₦100,000, what is the new equity?
A. ₦400,000
B. ₦500,000
C. ₦600,000
D. ₦700,000
Question 7
A company is considering implementing a just-in-time (JIT) inventory system. What is the primary benefit of JIT?
A. Reduced inventory costs
B. Improved customer service
C. Increased efficiency in production
D. Enhanced supplier relationships
Question 8
A firm uses the just-in-time (JIT) inventory system. What is the primary advantage of this system?
A. Reduced inventory costs
B. Improved quality control
C. Increased flexibility in production
D. Reduced transportation costs
Question 9
A company is considering two different types of insurance policies: a comprehensive policy that covers all types of risks, and a specific policy that only covers a specific type of risk. The comprehensive policy costs 1000 per year, while the specific policy costs 500 per year. If the company has a 10% chance of incurring a loss of 1000, and a 20% chance of incurring a loss of 2000, how much will it save by choosing the specific policy over the comprehensive policy?
A. 100
B. 200
C. 300
D. 400
Question 10
In a perfectly competitive market, the supply curve is upward-sloping because firms are willing to supply more of a good as its price increases, but they are not willing to supply it at a price below their minimum average total cost. What is the name of this minimum average total cost?
A. Average Variable Cost
B. Average Fixed Cost
C. Minimum Efficient Scale
D. Marginal Cost
Question 11
A firm is considering two investment projects. Project A has a 10% chance of earning ₦100,000 and a 90% chance of earning ₦0. Project B has a 20% chance of earning ₦50,000 and an 80% chance of earning ₦0. Which project has a higher expected return?
A. Project A
B. Project B
C. Both projects have the same expected return
D. Neither project has a higher expected return
Question 12
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the equilibrium price and quantity?
A. ( P = 10, Q = 100 )
B. ( P = 20, Q = 50 )
C. ( P = 15, Q = 75 )
D. ( P = 25, Q = 25 )
Question 13
A firm's production function is given by ( Q = 2L^2 + 3K ). If the firm's labor and capital inputs are 4 and 2 respectively, what is the marginal product of labor?
A. ( MPL = 4 )
B. ( MPL = 6 )
C. ( MPL = 8 )
D. ( MPL = 10 )
Question 14
A firm's profit function is given by ( pi = R - C ). If the firm's revenue and cost functions are ( R = 20Q - Q^2 ) and ( C = 10L + 20K ) respectively, and the firm's output is 5, what is the marginal profit?
A. ( MP = 10 )
B. ( MP = 15 )
C. ( MP = 20 )
D. ( MP = 25 )
Question 15
A sole trader's business is registered under which of the following?
A. Partnership
B. Company
C. Sole Proprietorship
D. Limited Liability Partnership

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