POST UTME AL-HIKMAH UNIVERSITY 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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 50 units of cloth, while Country B produces 50 units of wheat and 150 units of cloth.
C. 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.
D. Country A produces 50 units of wheat and 100 units of cloth, while Country B produces 150 units of wheat and 50 units of cloth.
Question 2
A company uses a just-in-time inventory system to manage its stock levels. This system relies on the timely arrival of shipments from suppliers. What is the name of the risk associated with this system?
A. Inventory risk
B. Supply chain risk
C. Operational risk
D. Financial risk
Question 3
A consumer has a utility function U(x, y) = 2x + 3y. If the prices of x and y are ₦50 and ₦75 respectively, and the consumer has a budget of ₦1500, what is the optimal bundle of x and y that maximizes utility?
A. x = 20, y = 10
B. x = 10, y = 20
C. x = 15, y = 15
D. x = 25, y = 5
Question 4
A company's marketing strategy involves creating a sense of exclusivity among its customers. Which of the following is a characteristic of this strategy?
A. Scarcity
B. Perceived value
C. Limited-time offer
D. Product differentiation
Question 5
In a perfectly competitive market, what is the relationship between the marginal revenue (MR) and marginal cost (MC) of a firm?
A. MR > MC
B. MR < MC
C. MR = MC
D. MR ≠ MC
Question 6
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the firm's current output?
A. 24
B. 36
C. 48
D. 64
Question 7
A consumer has a budget constraint of 100 and a preference for two goods, A and B. The prices of A and B are 20 and 30, respectively. If the consumer chooses to spend 80 on good A, what is the consumer's optimal consumption bundle?
A. A = 40, B = 0
B. A = 60, B = 20
C. A = 80, B = 0
D. A = 100, B = 0
Question 8
A business has a 'Current Ratio' of 2:1 and a 'Quick Ratio' of 1:1. If the 'Current Assets' are ₦1,000,000 and the 'Current Liabilities' are ₦500,000, what is the 'Quick Assets'?
A. ₦500,000
B. ₦750,000
C. ₦1,000,000
D. ₦1,250,000
Question 9
A firm specializes in producing a single product. This specialization allows the firm to reduce costs and increase efficiency. However, it also makes the firm vulnerable to changes in market demand. What is the name of this phenomenon?
A. Economies of scale
B. Diseconomies of scale
C. Risk aversion
D. Concentration risk
Question 10
A company may be wound up by the court if it is just and equitable to do so. Which of the following is a ground for winding up a company?
A. The company is insolvent
B. The company is unable to pay its debts
C. The company has committed a serious breach of its articles of association
D. The company has failed to file its annual returns
Question 11
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. What is the consumer's optimal bundle of goods?
A. 1 unit of A and 3 units of B
B. 2 units of A and 2 units of B
C. 3 units of A and 1 unit of B
D. 4 units of A and 0 units of B
Question 12
A firm's revenue function is given by R(x) = 100x - 2x^2. What is the marginal revenue function?
A. ( 100 - 4x )
B. ( 100 + 4x )
C. ( 100x - 2x^2 )
D. ( 100x + 2x^2 )
Question 13
A company uses the 'Matching Principle' to account for its expenses. If the company has a 'Salaries Expense' of ₦200,000 and a 'Salaries Payable' of ₦150,000, what is the 'Accrued Salaries'?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 14
A firm uses a risk management system to identify and mitigate potential risks. The system uses a probability distribution to model the likelihood of each risk. What is the name of the type of distribution used in this system?
A. Normal distribution
B. Lognormal distribution
C. Poisson distribution
D. Binomial distribution
Question 15
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. What is the consumer's optimal bundle of goods?
A. 1 unit of A and 3 units of B
B. 2 units of A and 2 units of B
C. 3 units of A and 1 unit of B
D. 4 units of A and 0 units of B

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: