Practice post utme unilag commerce 2020 Past Questions

Question 1

A company has a 10% dividend yield on its shares. If the current market price of the shares is ₦100, what is the annual dividend payment per share?

A. ₦10

B. ₦12.50

C. ₦15.00

D. ₦17.50

Question 2

A firm produces two goods, A and B, using two inputs, labor and capital. The production function for good A is given by Q_A = 2L^0.5K^0.5, where L is labor and K is capital. The production function for good B is given by Q_B = 3L^0.7K^0.3. If the firm has 100 units of labor and 50 units of capital, how many units of good A and good B will it produce?

A. Q_A = 10, Q_B = 15

B. Q_A = 15, Q_B = 10

C. Q_A = 20, Q_B = 5

D. Q_A = 5, Q_B = 20

Question 3

A consumer has a budget of ₦500 and a utility function given by U = 2x + 3y. If the prices of x and y are ₦50 and ₦100 respectively, what is the optimal level of x and y?

A. x = 5, y = 3

B. x = 3, y = 5

C. x = 10, y = 2

D. x = 2, y = 10

Question 4

A firm is considering launching a new product. The firm has identified several potential marketing strategies, but it is unsure which one to choose. Which of the following factors should the firm consider when deciding which strategy to choose?

A. The firm should consider the target market and the level of competition.

B. The firm should consider the product's unique selling proposition and the level of advertising required.

C. The firm should consider the product's price and the level of distribution required.

D. The firm should consider the product's quality and the level of customer service required.

Question 5

A company has a sole proprietorship business structure. The owner, John, has invested ₦100,000 in the business. The company has a profit of ₦50,000. What is John's net income?

A. ₦50,000

B. ₦75,000

C. ₦100,000

D. ₦125,000

Question 6

A firm's production function is given by Q = 2L^0.5 + 3K^0.5. If the price of labor (w) is ₦100 and the price of capital (r) is ₦200, what is the optimal level of labor (L) and capital (K)?

A. L = 4, K = 9

B. L = 9, K = 4

C. L = 16, K = 9

D. L = 9, K = 16

Question 7

In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. If the market price falls from ₦100 to ₦80, what is the effect on the quantity supplied?

A. Increase

B. Decrease

C. No change

D. No effect

Question 8

A company has the following insurance policy: a premium of ₦1,000,000, a deductible of ₦500,000, and a coverage limit of ₦5,000,000. If the company suffers a loss of ₦6,000,000, what is the total amount that the company will have to pay?

A. ₦1,500,000

B. ₦2,000,000

C. ₦2,500,000

D. ₦3,000,000

Question 9

A firm stores its inventory in a warehouse with a capacity of 10,000 units. If the firm's inventory level is currently at 8,000 units, what is the percentage of the warehouse that is currently occupied?

A. 80%

B. 85%

C. 90%

D. 95%

Question 10

A company is considering launching a new advertising campaign. The company has estimated the following costs and revenues for the campaign: Fixed costs = ₦100,000, Variable costs = ₦30,000, Revenue = ₦120,000. What is the company's profit?

A. ₦10,000

B. ₦30,000

C. ₦50,000

D. ₦70,000

Question 11

A firm has a profit function π = R - C, where π is profit, R is revenue, and C is cost. If revenue increases by ₦1000 and cost remains constant at ₦500, what is the change in profit?

A. ₦500

B. ₦1000

C. ₦1500

D. ₦2000

Question 12

A firm specializes in producing two goods: X and Y. The production of X requires 2 units of labor and 1 unit of capital, while the production of Y requires 3 units of labor and 2 units of capital. If the firm has 12 units of labor and 8 units of capital, what is the maximum number of units of good X that can be produced?

A. 6

B. 8

C. 10

D. 12

Question 13

A company has the following insurance policy: a premium of ₦500,000, a deductible of ₦200,000, and a coverage limit of ₦3,000,000. If the company suffers a loss of ₦2,000,000, what is the total amount that the company will have to pay?

A. ₦1,200,000

B. ₦1,500,000

C. ₦2,000,000

D. ₦2,500,000

Question 14