POST UTME BABCOCK UNIVERSITY 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's utility function is given by u(x,y) = 2x + y. If the consumer's budget constraint is given by 2x + 3y = 12, then the consumer's optimal consumption bundle is
A. (2,4)
B. (4,2)
C. (6,0)
D. (0,6)
Question 2
A company has a share capital of ₦500,000 and a share premium of ₦250,000. What is the total share capital of the company?
A. ₦750,000
B. ₦500,000
C. ₦250,000
D. ₦125,000
Question 3
A company is considering two different modes of transportation for its goods: road and rail. The cost of transporting goods by road is ₦1,000 per kilometer, while the cost of transporting goods by rail is ₦800 per kilometer. If the company needs to transport goods for 200 kilometers, what is the total cost of transportation by road?
A. ₦200,000
B. ₦180,000
C. ₦160,000
D. ₦140,000
Question 4
A consumer protection law requires that all goods sold in a market must be accompanied by a guarantee. Which of the following is a type of guarantee?
A. Express guarantee
B. Implied guarantee
C. Statutory guarantee
D. All of the above
Question 5
A company has a business income of ₦1,000,000 and a business expense of ₦500,000. What is the profit of the business?
A. ₦500,000
B. ₦750,000
C. ₦1,000,000
D. ₦1,500,000
Question 6
A bank's primary function is to provide which of the following services?
A. Accepting deposits
B. Making loans
C. Providing investment advice
D. All of the above
Question 7
In a perfectly competitive market, the supply curve is perfectly elastic because the firm can freely adjust its output in response to changes in the market price. However, this is not the case in a monopolistically competitive market, where the firm faces a downward-sloping demand curve. What is the primary reason for this difference in supply curve elasticity?
A. The presence of advertising and product differentiation
B. The ability of firms to collude and set prices
C. The presence of barriers to entry
D. The ability of firms to produce at a constant marginal cost
Question 8
A warehouse is storing a large quantity of perishable goods. Which of the following is a key consideration for the warehouse manager?
A. Minimizing storage costs
B. Maximizing storage capacity
C. Maintaining a consistent temperature
D. Reducing labor costs
Question 9
A firm's cost function is given by C(Q) = 2Q^2 + 3Q. If the firm's current output level is Q = 4, then the firm's total cost is
A. 16
B. 20
C. 24
D. 28
Question 10
A firm is considering investing in a new project that has a payback period of 3 years. The cost of capital is 10% per annum. What is the net present value (NPV) of the project?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 11
A consumer's budget constraint is given by 2x + 3y = 12. If the consumer's indifference curve is given by u(x,y) = 2x + y, then the consumer's optimal consumption bundle is
A. (2,4)
B. (4,2)
C. (6,0)
D. (0,6)
Question 12
A bank has a reserve requirement of 10% and a cash reserve of ₦500,000. If the bank wants to increase its lending capacity, what is the maximum amount it can lend?
A. ₦4,000,000
B. ₦5,000,000
C. ₦6,000,000
D. ₦7,000,000
Question 13
A firm is considering exporting its products to a foreign market. What is the primary advantage of exporting?
A. Increased market share
B. Reduced competition
C. Improved brand image
D. Access to new markets and customers
Question 14
A consumer's budget constraint is given by 2x + 3y = 12. If the consumer's indifference curve is given by u(x,y) = 2x + y, then the consumer's optimal consumption bundle is
A. (2,4)
B. (4,2)
C. (6,0)
D. (0,6)
Question 15
A bank's primary function is to provide which of the following services?
A. Accepting deposits
B. Making loans
C. Providing investment advice
D. All of the above

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