POST UTME UNN 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A sole trader, Mr. A, has a business that generates an average monthly profit of ₦50,000. If Mr. A wants to expand his business and increase his monthly profit by 20%, what is the new average monthly profit?
A. ₦60,000
B. ₦65,000
C. ₦70,000
D. ₦75,000
Question 2
A firm's production function is given by Q = 2L^(1/2)K^(1/2). If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and if the firm is currently producing 16 units of output, what is the marginal product of labor?
A. 4
B. 8
C. 16
D. 32
Question 3
A bank's balance sheet is given by Assets = ₦100,000, Liabilities = ₦50,000, and Equity = ₦50,000. If the bank's current cash balance is ₦20,000, what is the bank's liquidity ratio?
A. 0.2
B. 0.3
C. 0.4
D. 0.5
Question 4
A firm's inventory management system is given by the following diagram:
A. The firm's inventory level is increasing.
B. The firm's inventory level is decreasing.
C. The firm's inventory level is constant.
D. The firm's inventory level is unrelated to the production line.
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to increase its output by 20%, what is the required increase in labor and capital?
A. 10% increase in labor and 10% increase in capital
B. 20% increase in labor and 20% increase in capital
C. 15% increase in labor and 15% increase in capital
D. 25% increase in labor and 25% increase in capital
Question 6
The concept of comparative advantage in international trade is based on the idea that a country should specialize in producing goods for which it has a lower opportunity cost compared to another country. Which of the following is a correct example of comparative advantage?
A. Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 100 units of good Y.
B. Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 50 units of good Y.
C. Country A produces 50 units of good X and 100 units of good Y, while Country B produces 100 units of good X and 50 units of good Y.
D. Country A produces 50 units of good X and 50 units of good Y, while Country B produces 100 units of good X and 100 units of good Y.
Question 7
A firm has a production cost of ₦1,000 per unit and a selling price of ₦1,500 per unit. If it sells 500 units, what is the profit?
A. ₦250,000
B. ₦375,000
C. ₦500,000
D. ₦750,000
Question 8
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 = 4 and K = 9, what is the marginal product of labor?
A. 1.5
B. 2
C. 3
D. 4
Question 9
A company is considering two investment projects. Project A has a 10% chance of generating ₦1,000,000 in profit, and a 90% chance of generating ₦0 in profit. Project B has a 20% chance of generating ₦500,000 in profit, and a 80% chance of generating ₦0 in profit. Which project has the higher expected value?
A. Project A
B. Project B
C. Both projects have the same expected value
D. Neither project has a positive expected value
Question 10
A firm is considering two different modes of transportation for its goods: road and rail. The road transportation costs ₦120 per kilometer, while the rail transportation costs ₦100 per kilometer. If the firm needs to transport 500 kilometers of goods, what is the total cost of transportation using the road mode?
A. ₦60,000
B. ₦80,000
C. ₦100,000
D. ₦120,000
Question 11
A company is considering two different business units: sole trade and company. The sole trade business unit has a higher profit margin, but the company business unit has a lower risk. If the company wants to maximize its profits while minimizing its risk, which business unit should it choose?
A. Sole trade
B. Company
C. Both business units have equal profit margins
D. Neither business unit is suitable for the company's needs
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 of a product in this market?
A. ₦100, 100 units
B. ₦120, 80 units
C. ₦150, 60 units
D. ₦180, 40 units
Question 13
A firm's cost function is given by C = 2L + 3K. If the firm wants to minimize its costs, what is the optimal level of labor and capital?
A. L = 10, K = 20
B. L = 20, K = 10
C. L = 15, K = 15
D. L = 5, K = 5
Question 14
A company has a total of ₦5,000,000 in its current account. If it withdraws ₦1,500,000 and deposits ₦2,000,000, what is the new balance?
A. ₦4,500,000
B. ₦6,000,000
C. ₦3,500,000
D. ₦7,000,000
Question 15
A company has a foreign trade agreement with a country that allows it to import goods worth ₦1,000,000. If the company wants to import goods worth ₦1,500,000, what is the additional amount it needs to pay in customs duty?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000

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