POST UTME BABCOCK UNIVERSITY 2018 Commerce | Objective

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Question 1
A company is considering the introduction of a new product line. The product requires a significant investment in production facilities and equipment. However, the company believes that the product will generate a high profit margin. Which of the following is the most appropriate decision-making criterion for the company?
A. Net present value (NPV)
B. Internal rate of return (IRR)
C. Payback period
D. Return on investment (ROI)
Question 2
A consumer has a utility function u(x, y) = 2x + 3y and a budget constraint 2x + 3y = 100,000. Find the consumer's optimal consumption bundle.
A. x = 20,000, y = 30,000
B. x = 25,000, y = 35,000
C. x = 30,000, y = 40,000
D. x = 35,000, y = 45,000
Question 3
The diagram below shows the demand and supply curves for a perfectly competitive market. If the price is set at ₦100, the quantity supplied will be
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 4
In a foreign trade transaction, a Nigerian exporter agrees to sell 1000 units of goods to a foreign buyer at the exchange rate of ₦500 per unit. However, due to a change in the exchange rate, the exporter is now able to sell the same goods at ₦450 per unit. What is the percentage increase in the exporter's revenue?
A. 10%
B. 12%
C. 15%
D. 18%
Question 5
A life insurance policy pays a lump sum to the beneficiary upon the policyholder's death. What is the primary purpose of this type of insurance?
A. To provide financial support during retirement
B. To cover funeral expenses
C. To pay off outstanding debts
D. To provide a lump sum to the beneficiary
Question 6
A company has a warehouse with a capacity of 10,000 units. If the current stock level is 8,000 units and the daily demand is 200 units, what is the minimum number of units that should be ordered to meet the demand for the next 10 days?
A. 8000
B. 10000
C. 12000
D. 14000
Question 7
A company has a warehouse with a capacity of 10,000 units. If the current stock level is 8,000 units and the daily demand is 200 units, what is the minimum number of units that should be ordered to meet the demand for the next 10 days?
A. 8000
B. 10000
C. 12000
D. 14000
Question 8
A firm has a production function f(x, y) = 2x^2 + 3y^2 and a budget constraint 2x + 3y = 100,000. Find the firm's optimal production bundle.
A. x = 20,000, y = 30,000
B. x = 25,000, y = 35,000
C. x = 30,000, y = 40,000
D. x = 35,000, y = 45,000
Question 9
A firm has a warehouse with a capacity of 10,000 units. If the current stock level is 8,000 units and the daily demand is 200 units, what is the minimum number of units that should be ordered to meet the demand for the next 10 days?
A. 8000
B. 10000
C. 12000
D. 14000
Question 10
A firm has a production function f(x, y) = 2x^2 + 3y^2 and a budget constraint 2x + 3y = 100,000. Find the firm's optimal production bundle.
A. x = 20,000, y = 30,000
B. x = 25,000, y = 35,000
C. x = 30,000, y = 40,000
D. x = 35,000, y = 45,000
Question 11
A company is considering the introduction of a new product line. The product requires a significant investment in production facilities and equipment. However, the company believes that the product will generate a high profit margin. Which of the following is the most appropriate decision-making criterion for the company?
A. Net present value (NPV)
B. Internal rate of return (IRR)
C. Payback period
D. Return on investment (ROI)
Question 12
A company is considering a marketing campaign to promote its new product. What is the primary goal of this campaign?
A. To increase brand awareness
B. To generate leads
C. To drive sales
D. To build customer loyalty
Question 13
A firm is considering the introduction of a new product line. The product requires a significant investment in production facilities and equipment. However, the company believes that the product will generate a high profit margin. Which of the following is the most appropriate decision-making criterion for the company?
A. Net present value (NPV)
B. Internal rate of return (IRR)
C. Payback period
D. Return on investment (ROI)
Question 14
A consumer has a utility function u(x, y) = 2√xy and a budget constraint 2x + 3y = 100,000. Find the consumer's optimal consumption bundle.
A. x = 10,000, y = 20,000
B. x = 15,000, y = 25,000
C. x = 20,000, y = 30,000
D. x = 25,000, y = 35,000
Question 15
A consumer has an income of ₦100,000 and faces the following budget constraint: 2x + 3y = 100,000. The consumer's utility function is given by u(x, y) = 2√xy. Find the consumer's optimal consumption bundle.
A. x = 10,000, y = 20,000
B. x = 15,000, y = 25,000
C. x = 20,000, y = 30,000
D. x = 25,000, y = 35,000

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