POST UTME AFE BABALOLA UNIVERSITY 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A bank's primary function is to act as a financial intermediary between savers and borrowers. What is the primary benefit of this function?
A. To provide liquidity to the economy
B. To facilitate the transfer of funds between individuals and businesses
C. To manage risk and reduce uncertainty for borrowers
D. To increase the overall level of economic activity
Question 2
A consumer has a budget constraint of 1000 and a preference for two goods, A and B, with prices of 10 and 20 respectively. If the consumer's indifference curve is tangent to the budget line at a point where the consumer is consuming 50 units of good A and 25 units of good B, what is the consumer's marginal rate of substitution (MRS) between good A and good B?
A. 1:1
B. 1:2
C. 2:1
D. 3:1
Question 3
A company's articles of association outline its rules and regulations. What is the primary purpose of these articles?
A. To define the company's objectives and goals
B. To outline the rights and responsibilities of shareholders
C. To specify the procedures for appointing directors and auditors
D. To establish the company's capital structure and shareholding
Question 4
A firm's revenue function is given by R(x) = 100x - 2x^2. Find the marginal revenue function.
A. R'(x) = 100 - 4x
B. R'(x) = 100 + 4x
C. R'(x) = 100 - 2x
D. R'(x) = 100 + 2x
Question 5
A company has a warehouse with a capacity of 10,000 units. The company receives an order for 5,000 units. The warehouse is currently 70% full. What is the minimum number of units that can be stored in the warehouse after fulfilling the order?
A. 3500
B. 4000
C. 4500
D. 5000
Question 6
In a perfectly competitive market, the demand curve for a firm's product is its marginal revenue curve. True or False?
A. True
B. False
C. It depends on the market structure
D. It depends on the firm's production level
Question 7
A consumer has a budget constraint of 1000 and a preference for two goods, A and B, with prices of 10 and 20 respectively. If the consumer's indifference curve is tangent to the budget line at a point where the consumer is consuming 50 units of good A and 25 units of good B, what is the consumer's budget constraint equation?
A. 10A + 20B = 1000
B. 10A + 20B = 1200
C. 10A + 20B = 1400
D. 10A + 20B = 1600
Question 8
A company is considering investing in a new production facility. The company's production team has identified several potential production costs, including fixed costs, variable costs, and sunk costs. Which type of cost is typically incurred even if the company decides not to produce a product?
A. Fixed cost
B. Variable cost
C. Sunk cost
D. Opportunity cost
Question 9
A sole trader is considering the purchase of a new business. The business requires an initial investment of ₦200,000. The sole trader expects to earn a profit of ₦50,000 per year. What is the minimum number of years the sole trader must operate the business to recover the initial investment?
A. 2 years
B. 3 years
C. 4 years
D. 5 years
Question 10
A company uses the FIFO method to value its inventory. The company has two types of inventory: Type A and Type B. The cost of Type A is ₦100 per unit, and the cost of Type B is ₦120 per unit. The company has 100 units of Type A and 50 units of Type B. What is the total cost of the inventory?
A. ₦12000
B. ₦13000
C. ₦14000
D. ₦15000
Question 11
A life insurance policy provides a lump sum payment to the policyholder's beneficiaries in the event of their death. What is the primary purpose of this payment?
A. To cover funeral expenses and other immediate costs
B. To provide a source of income for the policyholder's dependents
C. To pay off outstanding debts and loans
D. To fund the policyholder's retirement or other long-term goals
Question 12
A company has a warehouse with a capacity of 10,000 units. The current inventory level is 8,000 units. If the company receives a shipment of 2,000 units, what is the new inventory level?
A. 8000
B. 10000
C. 12000
D. 14000
Question 13
A company has a production function Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company increases its labor input from 100 to 121 units and its capital input from 100 to 121 units, what is the new quantity produced?
A. 121
B. 122
C. 123
D. 124
Question 14
A firm's cost function is given by C(x) = 50 + 10x + 2x^2. Find the elasticity of supply.
A. ES = -2x
B. ES = 2x
C. ES = -x
D. ES = x
Question 15
A firm's cost function is given by C(x) = 50 + 10x + 2x^2. Find the marginal cost function.
A. C'(x) = 10 + 4x
B. C'(x) = 10 - 4x
C. C'(x) = 10 + 2x
D. C'(x) = 10 - 2x

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