POST UTME AFE BABALOLA UNIVERSITY 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer purchases a product with a price tag of ₦3,000. If the consumer pays a 10% discount, how much will the consumer pay in total?
A. ₦2,700
B. ₦2,800
C. ₦2,600
D. ₦2,900
Question 2
The following diagram represents a production possibility frontier for a firm that produces two goods, X and Y. What is the opportunity cost of producing one more unit of good X?
A. 1 unit of good Y
B. 2 units of good Y
C. 3 units of good Y
D. 4 units of good Y
Question 3
A consumer purchases a product with a price of ₦5,000. If the product is subject to a 10% sales tax, what is the amount of tax paid?
A. ₦500
B. ₦1,000
C. ₦5,000
D. ₦10,000
Question 4
A sole trader, Mr. A, has a business that generates an average monthly revenue of ₦200,000. His monthly expenses are ₦50,000, and he saves ₦30,000. If he wants to expand his business by 20% next year, how much additional capital will he need?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 5
A company is considering the implementation of a just-in-time (JIT) inventory system. What is the primary benefit of JIT?
A. Reduced inventory costs and improved cash flow
B. Increased efficiency in production and delivery
C. Enhanced customer satisfaction through faster delivery
D. Improved product quality through reduced storage time
Question 6
A consumer has a budget of ₦1000 and a preference for two goods, A and B. The prices of the goods are ₦200 and ₦300 respectively. The consumer's indifference curves are given by the equation U = 2x^0.5y^0.5, where U is utility, x is the quantity of good A and y is the quantity of good B. If the consumer is initially at point (2, 2), what is the new point on the indifference curve that the consumer will move to after a price increase of 20%?
A. (1, 3)
B. (2, 2)
C. (3, 1)
D. (4, 0)
Question 7
A multinational corporation is considering entering the Nigerian market. Which of the following types of trade would be most suitable for this company?
A. Export Trade
B. Import Trade
C. Intra-Company Trade
D. Counter Trade
Question 8
The _______ of a business refers to the process of converting inputs into outputs.
A. production
B. distribution
C. consumption
D. marketing
Question 9
A consumer has a budget of ₦1000 and a preference for two goods, A and B. The prices of the goods are ₦200 and ₦300 respectively. The consumer's indifference curves are given by the equation U = 2x^0.5y^0.5, where U is utility, x is the quantity of good A and y is the quantity of good B. If the consumer is initially at point (2, 2), what is the new point on the indifference curve that the consumer will move to after a price increase of 20%?
A. (1, 3)
B. (2, 2)
C. (3, 1)
D. (4, 0)
Question 10
A _______ is a type of insurance that pays a lump sum benefit if the policyholder dies within a specified period.
A. life insurance
B. health insurance
C. disability insurance
D. accident insurance
Question 11
A sole trader has decided to expand their business by hiring additional employees. What is the most likely tax implication of this decision?
A. The sole trader will be required to pay a higher rate of income tax
B. The sole trader will be required to pay a higher rate of corporation tax
C. The sole trader will be able to claim a tax deduction for the salaries of the new employees
D. The sole trader will not be required to pay any additional taxes
Question 12
A company's marketing strategy involves creating a new product line. The company has a budget of ₦1,500,000 for the product launch. If the cost of production is ₦800,000, and the company wants to make a profit of 20%, how much should it spend on advertising?
A. ₦300,000
B. ₦350,000
C. ₦400,000
D. ₦450,000
Question 13
In the context of international trade, what is the primary function of the World Trade Organization (WTO)?
A. To regulate international trade agreements
B. To provide a platform for countries to negotiate trade agreements
C. To enforce trade sanctions against non-compliant countries
D. To promote economic development in developing countries
Question 14
A firm has a 20% markup on its products. If a product is sold for ₦8,000, what is the cost price of the product?
A. ₦6,667
B. ₦6,400
C. ₦6,000
D. ₦6,800
Question 15
A bank's financial statement shows a net income of ₦500,000, a total asset value of ₦5,000,000, and a total liability of ₦3,000,000. What is the bank's return on equity (ROE) if the equity is ₦1,500,000?
A. 33.33%
B. 25%
C. 20%
D. 15%

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