POST UTME AFE BABALOLA UNIVERSITY 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
In a perfectly competitive market, what is the relationship between the marginal revenue product of labor and the marginal factor cost of labor?
A. MRP = MFC
B. MRP > MFC
C. MRP < MFC
D. MRP = -MFC
Question 2
A company uses a just-in-time inventory system to manage its stock of raw materials. The company orders 100 units of raw materials every 10 days. If the lead time for delivery is 5 days, what is the reorder point for the next order?
A. 80 units
B. 90 units
C. 100 units
D. 110 units
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's marginal revenue function is MR = 200 - 4Q, what is the price at which the firm will maximize its profit?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 4
A consumer's budget constraint is given by the equation 2x + 3y = 12, where x is the quantity of good X and y is the quantity of good Y. If the consumer's income is ₦12 and the price of good X is ₦2, what is the consumer's optimal bundle of goods?
A. x = 2, y = 2
B. x = 3, y = 1
C. x = 4, y = 0
D. x = 0, y = 4
Question 5
A consumer's indifference curve is given by the equation u(x,y) = 2x + 3y. If the consumer's current consumption bundle is (x,y) = (4,3), what is the marginal rate of substitution?
A. 1/2
B. 1
C. 2
D. 3
Question 6
A firm specializes in producing two goods, X and Y. The production of X requires 2 hours of labor and 1 hour of capital, while the production of Y requires 3 hours of labor and 2 hours of capital. The firm has 120 hours of labor and 80 hours of capital available. If the firm produces 20 units of X and 15 units of Y, what is the opportunity cost of producing one more unit of X?
A. 10 hours of labor
B. 20 hours of labor
C. 30 hours of labor
D. 40 hours of labor
Question 7
A company is considering the introduction of a new product. The product has a high demand, but the production costs are high. The company is considering the following options: (i) increase the price of the product, (ii) reduce the production costs, (iii) increase the advertising budget, and (iv) reduce the quality of the product. Which of the following options is the most appropriate?
A. (i) increase the price of the product
B. (ii) reduce the production costs
C. (iii) increase the advertising budget
D. (iv) reduce the quality of the product
Question 8
The following diagram shows a demand curve for a product. If the price elasticity of demand is 0.5, what is the percentage change in quantity demanded if the price increases by 10%?
A. 5%
B. 10%
C. 20%
D. 30%
Question 9
The Central Bank of Nigeria (CBN) uses the following monetary policy tools to control inflation: Open Market Operations (OMO), Reserve Requirements, and Moral Suasion. Which of the following is NOT a monetary policy tool used by the CBN?
A. Fiscal Policy
B. Monetary Policy
C. Supply-Side Policy
D. Demand-Side Policy
Question 10
A company is considering the introduction of a new product. The product has a high demand, but the production costs are high. The company is considering the following options: (i) increase the price of the product, (ii) reduce the production costs, (iii) increase the advertising budget, and (iv) reduce the quality of the product. Which of the following options is the most appropriate?
A. (i) increase the price of the product
B. (ii) reduce the production costs
C. (iii) increase the advertising budget
D. (iv) reduce the quality of the product
Question 11
A company's business units are organized into a functional structure. Which of the following is the most appropriate way to allocate resources among these units?
A. Based on market demand and customer needs
B. Based on the company's overall strategy and goals
C. Based on the individual performance of each unit
D. Based on the availability of resources
Question 12
A sole trader's business is exposed to various risks, including market risk and operational risk. Which of the following is the most appropriate way to manage these risks?
A. Diversification of the business
B. Hedging against market fluctuations
C. Insurance coverage for operational risks
D. Reducing the scale of the business
Question 13
A company is considering entering a new market in a foreign country. What are the key factors that the company should consider when deciding whether to enter the market?
A. The company should consider the size of the market, the level of competition, and the potential for growth.
B. The company should consider the cultural and political environment of the foreign country, as well as the level of trade barriers.
C. The company should consider the cost of entering the market, including the cost of setting up a new facility and hiring local staff.
D. The company should consider the potential for cultural and language barriers, as well as the risk of political instability.
Question 14
A company has a sole proprietorship business structure. The owner of the business is responsible for all the debts and liabilities of the business. What is the name of this business structure?
A. Sole Proprietorship
B. Partnership
C. Limited Liability Company
D. Cooperative Society
Question 15
A sole trader has a business income of ₦500,000 and a business expense of ₦200,000. If the sole trader has a personal income of ₦300,000, what is the total tax liability for the year?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000

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