POST UTME UNILORIN 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering two different insurance policies for its employees. Policy A has a premium of ₦5,000 per year and covers up to ₦100,000 in medical expenses. Policy B has a premium of ₦10,000 per year and covers up to ₦200,000 in medical expenses. Which policy has a higher expected value of insurance?
A. Policy A
B. Policy B
C. Both policies have the same expected value of insurance
D. Neither policy has a higher expected value of insurance
Question 2
A company is considering two different production methods for a product. Method A requires an initial investment of ₦100,000 and produces 100 units per day. Method B requires an initial investment of ₦150,000 and produces 120 units per day. If the company wants to maximize its profits, which method should it choose?
A. Method A
B. Method B
C. Both methods are equally profitable
D. Neither method is profitable
Question 3
A consumer is considering purchasing a product that has a price of ₦800. The consumer has a budget of ₦1,200 and has already spent ₦400 on other products. If the consumer wants to maximize their satisfaction, which of the following statements is true?
A. The consumer should purchase the product
B. The consumer should not purchase the product
C. The consumer should purchase the product if they can get a discount
D. The consumer should purchase the product if they can get a refund
Question 4
A firm's revenue function is given by R = 100x - 2x^2, where x is the number of units sold. If the firm sells 20 units, what is its revenue?
A. ₦1,600
B. ₦1,800
C. ₦2,000
D. ₦2,200
Question 5
A company is considering two different marketing strategies for its new product. Strategy A involves a high initial investment of ₦10 million, but it is expected to generate ₦20 million in revenue per year for 5 years. Strategy B involves a lower initial investment of ₦5 million, but it is expected to generate ₦15 million in revenue per year for 3 years. Which strategy has a higher net present value (NPV)?
A. Strategy A
B. Strategy B
C. Both strategies have the same NPV
D. Neither strategy has a higher NPV
Question 6
In a perfectly competitive market, the law of supply states that the quantity of a good supplied is inversely related to its price. What is the slope of the supply curve?
A. -1
B. 1
C. 0
D. 2
Question 7
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is the quantity produced, L is the number of labor hours, and H is the number of hours of capital used. If the firm wants to increase its production by 20% while keeping the labor hours constant at 100, how many more hours of capital should it use?
A. 50
B. 75
C. 100
D. 125
Question 8
A bank is considering two different investment options for its customers. Option A has a return of 5% per year and a risk level of 2. Option B has a return of 10% per year and a risk level of 4. Which option has a higher Sharpe ratio?
A. Option A
B. Option B
C. Both options have the same Sharpe ratio
D. Neither option has a higher Sharpe ratio
Question 9
A consumer purchases a product with a price of ₦1,500 and a 10% discount. What is the amount of the discount?
A. ₦150
B. ₦150.00
C. ₦150.00
D. ₦150.00
Question 10
A company is considering forming a partnership with another company. The partnership would require an initial investment of ₦200,000 and would generate annual profits of ₦50,000. If the company wants to maximize its returns, which of the following statements is true?
A. The company should form the partnership
B. The company should not form the partnership
C. The company should form the partnership if they can get a majority stake
D. The company should form the partnership if they can get a minority stake
Question 11
A firm is considering the introduction of a new product line. The product has a high fixed cost of ₦5 million and a variable cost of ₦10,000 per unit. The selling price of the product is ₦20,000 per unit. If the company expects to sell 10,000 units, what is the minimum revenue required to break even?
A. ₦50 million
B. ₦60 million
C. ₦70 million
D. ₦80 million
Question 12
A consumer is considering buying a product that costs ₦1,000. The consumer has a budget of ₦2,000 and is willing to spend up to 50% of their income on the product. What is the maximum amount the consumer is willing to pay for the product?
A. ₦500
B. ₦750
C. ₦1,000
D. ₦1,250
Question 13
A consumer is considering purchasing a product that costs ₦500. The consumer has a budget of ₦1,000 and has already spent ₦300 on other products. If the consumer wants to maximize their satisfaction, which of the following statements is true?
A. The consumer should purchase the product
B. The consumer should not purchase the product
C. The consumer should purchase the product if they can get a discount
D. The consumer should purchase the product if they can get a refund
Question 14
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current output is 16 units and the number of workers (L) is 4, how many units of capital (K) are required?
A. 4
B. 8
C. 16
D. 32
Question 15
A firm's cost function is given by C = 50 + 2x, where x is the number of units produced. If the firm produces 20 units, what is its total cost?
A. ₦100
B. ₦150
C. ₦200
D. ₦250

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