Practice Post UTME ACHIEVERS UNIVERSITY commerce 2018 Past Questions

Question 1

In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will

A. increase

Correct B. decrease

C. remain constant

D. move in the opposite direction

Correct Answer: B

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Question 2

A company's marketing strategy involves creating a brand image that is perceived as unique and valuable by its target market. This is an example of

A. product differentiation

B. market segmentation

Correct C. brand positioning

D. target marketing

Correct Answer: C

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Question 3

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

Correct C. unfair trade practices law

D. product liability law

Correct Answer: C

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Question 4

A company's foreign trade strategy involves exporting goods to countries with a comparative advantage in production. This is an example of

Correct A. export-led growth strategy

B. import substitution strategy

C. infant industry protection strategy

D. free trade strategy

Correct Answer: A

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Question 5

A company's marketing mix involves the 4 Ps: product, price, promotion, and

Correct A. place

B. people

C. process

D. physical distribution

Correct Answer: A

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Question 6

In a perfectly competitive market, the supply curve is downward sloping because

Correct 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

Correct Answer: A

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Question 7

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, what is the minimum cost of production?

A. ₦4000

Correct B. ₦8000

C. ₦12000

D. ₦16000

Correct Answer: B

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Question 8

A company has a budget constraint of ₦10000, and it can spend up to ₦5000 on labor and up to ₦5000 on capital. If the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, what is the maximum output the company can produce?

A. 10 units

Correct B. 20 units

C. 30 units

D. 40 units

Correct Answer: B

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Question 9

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

Correct B. ₦30

C. ₦40

D. ₦50

Correct Answer: B

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Question 10

A company has a production function given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, what is the minimum cost of production?

A. ₦4000

Correct B. ₦8000

C. ₦12000

D. ₦16000

Correct Answer: B

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Question 11

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

Correct C. The owner's personal assets are protected

D. Unlimited liability

Correct Answer: C

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Question 12

A company's memorandum of association is a document that outlines the company's

A. Objects and powers

B. Share capital and dividend policy

C. Directors' remuneration and benefits

Correct D. Articles of association and memorandum of association

Correct Answer: D

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Question 13

A bank's reserve requirement is the minimum percentage of deposits that the bank must hold in reserve. If a bank has a reserve requirement of 10% and a deposit of ₦100,000, how much must the bank hold in reserve?

Correct A. ₦10,000

B. ₦20,000

C. ₦30,000

D. ₦40,000

Correct Answer: A

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Question 14

A consumer protection law is a law that protects consumers from unfair or deceptive business practices. Which of the following is a characteristic of a consumer protection law?

A. It protects businesses from consumer lawsuits

B. It requires consumers to disclose their personal information

Correct C. It prohibits unfair or deceptive business practices

D. It requires consumers to pay for goods and services before receiving them

Correct Answer: C

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Question 15

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 a characteristic of a sole trader's business?

A. Limited liability

B. Unlimited capacity

C. The owner's personal assets are protected

Correct D. Unlimited liability

Correct Answer: D

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Question 16

The concept of 'Just-in-Time' (JIT) inventory system is most closely associated with which of the following inventory control techniques?

A. Economic Order Quantity (EOQ)

Correct B. Just-in-Time (JIT)

C. Materials Requirements Planning (MRP)

D. Vendor-Managed Inventory (VMI)

Correct Answer: B

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Question 17

A company's marketing strategy involves creating a new product line to target a specific demographic. Which of the following marketing mix elements is being primarily affected by this decision?

Correct A. Product

B. Price

C. Promotion

D. Place

Correct Answer: A

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Question 18

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

Correct B. Extension of credit

C. Payment and clearing services

D. Investment services

Correct Answer: B

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Question 19

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

Correct B. Land freight

C. Sea freight

D. Pipeline transport

Correct Answer: B

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Question 20

A company's marketing strategy involves creating a new product line to target a specific demographic. Which of the following marketing mix elements is being primarily affected by this decision?

Correct A. Product

B. Price

C. Promotion

D. Place

Correct Answer: A

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Question 21

The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost compared to other countries. Which of the following is a correct example of comparative advantage?

A. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth.

B. Country A produces 100 units of wheat and 100 units of cloth, while Country B produces 50 units of wheat and 50 units of cloth.

Correct C. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 150 units of cloth.

D. Country A produces 50 units of wheat and 100 units of cloth, while Country B produces 100 units of wheat and 50 units of cloth.

Correct Answer: C

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Question 22

A firm's break-even point is the point at which its total revenue equals its total fixed and variable costs. Which of the following is a correct formula for calculating the break-even point?

Correct A. BEQ = Total Revenue / (Fixed Costs + Variable Costs)

B. BEQ = Total Revenue - (Fixed Costs + Variable Costs)

C. BEQ = (Fixed Costs + Variable Costs) / Total Revenue

D. BEQ = Total Revenue - Fixed Costs + Variable Costs

Correct Answer: A

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Question 23

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?

Correct 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.

Correct Answer: A

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Question 24

A firm's demand curve is downward-sloping, indicating that as the price of the good decreases, the quantity demanded increases. Which of the following is a correct explanation for this phenomenon?

Correct A. As the price of the good decreases, the consumer's purchasing power increases, leading to an increase in the quantity demanded.

B. As the price of the good decreases, the consumer's income decreases, leading to a decrease in the quantity demanded.

C. As the price of the good decreases, the consumer's preferences shift towards the good, leading to an increase in the quantity demanded.

D. As the price of the good decreases, the consumer's supply curve shifts to the left, leading to a decrease in the quantity supplied.

Correct Answer: A

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Question 25

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?

Correct A. MR = ΔTR / ΔQ

B. MR = TR / Q

C. MR = Q / TR

D. MR = ΔQ / ΔTR

Correct Answer: A

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