POST UTME ACHIEVERS UNIVERSITY 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's profit-maximizing output is the point at which its marginal revenue (MR) equals its marginal cost (MC). Which of the following is a correct formula for calculating the profit-maximizing output?
A. Q* = MR = MC
B. Q* = MR - MC
C. Q* = MR + MC
D. Q* = MC - MR
Question 2
The Central Bank of Nigeria (CBN) uses the monetary policy framework to regulate the money supply in the economy. Which of the following instruments is used by the CBN to reduce the money supply?
A. Open Market Operations
B. Reserve Requirements
C. Discount Rate
D. Selective Credit Controls
Question 3
A firm's total revenue (TR) is the product of its price (P) and quantity sold (Q). Which of the following is a correct formula for calculating TR?
A. TR = P x Q
B. TR = P + Q
C. TR = P - Q
D. TR = Q - P
Question 4
A company's supply chain involves the transportation of goods from a supplier to a warehouse. Which of the following transportation modes is most likely to be used for this purpose?
A. Air freight
B. Land freight
C. Sea freight
D. Pipeline transport
Question 5
A consumer has purchased a product with a 2-year warranty. The product develops a fault after 18 months. What is the consumer's likely course of action?
A. Return the product to the manufacturer for repair or replacement
B. Seek compensation from the manufacturer for the cost of a new product
C. Take the product to a third-party repair service
D. Contact a consumer protection agency for assistance
Question 6
A company's marketing mix involves the 4 Ps: product, price, promotion, and
A. place
B. people
C. process
D. physical distribution
Question 7
A bank's primary function is to act as a financial intermediary between savers and borrowers. Which of the following banking services is most closely related to this function?
A. Acceptance of deposits
B. Extension of credit
C. Payment and clearing services
D. Investment services
Question 8
In a perfectly competitive market, the supply curve is downward sloping because
A. Firms are willing to supply more at a lower price
B. Firms are willing to supply less at a higher price
C. Firms are willing to supply more at a higher price
D. Firms are willing to supply less at a lower price
Question 9
A company has a 10% dividend yield on its shares. If the current market price of the shares is ₦100, what is the expected dividend payment per share?
A. ₦5
B. ₦10
C. ₦15
D. ₦20
Question 10
A firm's marginal revenue (MR) is the change in total revenue (TR) resulting from a one-unit change in the quantity sold. Which of the following is a correct formula for calculating MR?
A. MR = ΔTR / ΔQ
B. MR = TR / Q
C. MR = Q / TR
D. MR = ΔQ / ΔTR
Question 11
A firm's revenue is maximized when the marginal revenue equals the marginal cost. This is because
A. The firm is producing at its optimal level of output.
B. The firm is producing at its minimum level of output.
C. The firm is producing at its maximum level of output.
D. The firm is producing at its break-even point.
Question 12
A consumer protection law that prohibits businesses from engaging in unfair or deceptive acts or practices is an example of
A. truth-in-advertising law
B. consumer credit protection law
C. unfair trade practices law
D. product liability law
Question 13
A firm's demand function is given by Q = 100 - 2P. If the firm wants to maximize its revenue, what price should it charge?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 14
A sole trader's business is characterized by the following features: unlimited liability, unlimited capacity, and the owner's personal assets are not protected. Which of the following is NOT a characteristic of a sole trader's business?
A. Limited liability
B. Unlimited capacity
C. The owner's personal assets are protected
D. Unlimited liability
Question 15
A producer's supply curve is upward-sloping, indicating that as the price of the good increases, the quantity supplied also increases. Which of the following is a correct explanation for this phenomenon?
A. As the price of the good increases, the producer's revenue increases, leading to an increase in the quantity supplied.
B. As the price of the good increases, the producer's costs decrease, leading to an increase in the quantity supplied.
C. As the price of the good increases, the producer's supply curve shifts to the right, leading to an increase in the quantity supplied.
D. As the price of the good increases, the producer's supply curve shifts to the left, leading to a decrease in the quantity supplied.

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