POST UTME WELLSPRING UNIVERSITY 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's supply chain involves transporting goods from a factory to a warehouse. This is an example of which of the following?
A. Transportation
B. Inventory management
C. Warehousing
D. Logistics
Question 2
In a perfectly competitive market, the law of diminishing marginal utility is most relevant to the production of which of the following goods?
A. Giffen Goods
B. Normal Goods
C. Inferior Goods
D. Superior Goods
Question 3
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm increases its price from ₦50 to ₦75, what is the percentage change in quantity demanded?
A. -20%
B. -30%
C. -40%
D. -50%
Question 4
A firm is considering two investment opportunities, A and B. Opportunity A has a 10% chance of generating ₦1,000,000 and a 90% chance of generating ₦0. What is the expected value of Opportunity A?
A. ₦100,000
B. ₦0
C. ₦90,000
D. ₦10,000
Question 5
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 6
A company's financial statements show that its total revenue is ₦1,500,000 and its total cost is ₦1,200,000. What is the company's profit?
A. ₦300,000
B. ₦200,000
C. ₦100,000
D. ₦50,000
Question 7
A consumer's indifference curve is given by U = 2x + 3y. If the consumer's budget constraint is given by 2x + 3y = 12, what is the consumer's optimal bundle?
A. (2, 4)
B. (4, 2)
C. (6, 0)
D. (0, 6)
Question 8
In a perfectly competitive market, the supply curve is downward sloping due to the law of increasing costs. However, this law is not applicable in a market with a single firm. What is the name of this market structure?
A. Monopoly
B. Oligopoly
C. Monopolistic Competition
D. Perfect Competition
Question 9
A consumer's budget constraint is given by 2x + 3y = 12. If the consumer's income increases by 20% and the price of good x increases by 10%, what is the new budget constraint?
A. 2x + 3y = 14.4
B. 2x + 3y = 16.8
C. 2x + 3y = 18.2
D. 2x + 3y = 20.6
Question 10
A consumer has a budget of ₦1000 and faces the following prices: Good A = ₦200, Good B = ₦300, and Good C = ₦400. If the consumer allocates 40% of their budget to Good A, 30% to Good B, and 30% to Good C, what is the total quantity of each good purchased?
A. Good A = 2 units, Good B = 1 unit, Good C = 1 unit
B. Good A = 3 units, Good B = 2 units, Good C = 2 units
C. Good A = 4 units, Good B = 3 units, Good C = 3 units
D. Good A = 5 units, Good B = 4 units, Good C = 4 units
Question 11
A company's break-even point is at a sales volume of 5,000 units. If the selling price per unit is ₦100 and the variable cost per unit is ₦50, what is the company's contribution per unit?
A. ₦25
B. ₦30
C. ₦35
D. ₦40
Question 12
A firm's production function is given by Q = 2L^0.5 + 3K^0.5, where Q is the quantity produced, L is labor, and K is capital. If the firm increases its labor from 4 units to 9 units, and its capital from 9 units to 16 units, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 13
A consumer has a utility function given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer allocates 50% of their budget to Good A and 50% to Good B, and the prices of Good A and Good B are ₦200 and ₦300 respectively, what is the maximum utility the consumer can achieve?
A. 100
B. 200
C. 300
D. 400
Question 14
A sole trader, Mr. A, has a capital of ₦500,000. He also has a loan of ₦200,000 from a bank. What is his total capital?
A. ₦700,000
B. ₦600,000
C. ₦500,000
D. ₦400,000
Question 15
A firm's revenue function is given by R = 2pQ. If the price (p) is 10 units and the quantity sold (Q) is 5 units, what is the total revenue?
A. 50
B. 100
C. 200
D. 500

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