POST UTME WELLSPRING UNIVERSITY 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's insurance policy covers losses due to fire, theft, and natural disasters. If a company experiences a loss of ₦200 million due to a fire, what is the maximum amount that the insurance company will pay?
A. ₦150 million
B. ₦200 million
C. ₦250 million
D. ₦300 million
Question 2
A firm specializes in producing a single product, which is a type of commodity. The firm's production function is given by Q = 100L^0.5, where Q is the quantity produced and L is the labor input. If the firm wants to produce 400 units of the commodity, how many units of labor are required?
A. 50
B. 100
C. 200
D. 400
Question 3
A sole trader has a business income of ₦500,000 and a business expense of ₦200,000. If the sole trader wants to save 20% of the business income, how much will be saved?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 4
A company has a warehouse with a capacity of 1000 units. If 75% of the warehouse is occupied, and the company wants to increase the capacity by 20%, what is the new capacity?
A. 1200
B. 1300
C. 1400
D. 1500
Question 5
A warehouse manager is responsible for ensuring that inventory levels are accurate and up-to-date. If a warehouse has a total inventory value of ₦500 million and a shrinkage rate of 2%, what is the total value of inventory lost due to shrinkage?
A. ₦10 million
B. ₦15 million
C. ₦20 million
D. ₦25 million
Question 6
A firm's cost function is given by C = 2L + 3H, where C is cost, L is labor, and H is capital. If the firm wants to minimize cost while producing 100 units of output, and labor is fixed at 20 units, how much capital should it use?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 7
A company has two production plants, A and B. Plant A produces 100 units of a product per hour, while plant B produces 150 units per hour. If the company wants to produce a total of 500 units per hour, how many hours will it take to produce this quantity?
A. 2 hours
B. 3 hours
C. 4 hours
D. 5 hours
Question 8
A consumer's indifference curve is given by U = 2x + 3y, where U is utility, x is quantity of good X, and y is quantity of good Y. If the consumer's budget constraint is 2x + 3y = 12, and the price of good X is ₦2 per unit, how much of good Y should the consumer buy?
A. 4 units
B. 6 units
C. 8 units
D. 10 units
Question 9
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm wants to increase output by 20% while keeping labor constant at 16 units, how much should it increase capital?
A. 8 units
B. 16 units
C. 32 units
D. 64 units
Question 10
A firm's revenue is maximized when the price elasticity of demand is
A. Unit elastic
B. Inelastic
C. Elastic
D. Perfectly elastic
Question 11
A company's marketing strategy involves a 20% discount on all products for the first 100 customers. If the original price of a product is ₦500, how much will a customer pay for the product if they are the 101st customer?
A. ₦400
B. ₦450
C. ₦500
D. ₦550
Question 12
A firm's cost of production can be minimized when the price elasticity of supply is
A. Unit elastic
B. Inelastic
C. Elastic
D. Perfectly elastic
Question 13
A consumer protection agency is investigating a complaint about a company's unfair business practices. The agency discovers that the company has been engaging in price-fixing, which is a violation of the Consumer Protection Act. What is the likely outcome of this investigation?
A. The company will be fined ₦1 million
B. The company will be ordered to pay damages to affected consumers
C. The company will be required to change its business practices
D. The company will be shut down
Question 14
A firm's production function is given by Q = 100L^0.5, where Q is the quantity produced and L is the labor input. If the firm wants to produce 400 units of the commodity, how many units of labor are required?
A. 50
B. 100
C. 200
D. 400
Question 15
A firm imports goods worth ₦1,500,000. If the government imposes a 10% duty on the imported goods, what is the amount of duty paid?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000

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