POST UTME BELLS UNIVERSITY 2021 Commerce | Objective
Practice these randomly selected questions to test your readiness.
Question 1
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the effect of an increase in the price of a complementary good on the supply curve?
Question 2
A bank offers a loan of ₦500,000 at an interest rate of 12% per annum. What is the annual interest on the loan?
Question 3
A sole trader is a business owned and operated by one individual. What is the primary advantage of being a sole trader?
Question 4
A bank's reserve requirement is 10%. If the bank has ₦1 million in deposits, how much must it hold in reserve?
Question 5
A firm exports goods to another country. What is the name of this phenomenon?
Question 6
A firm's revenue is ₦1.2 million, with a cost of goods sold of ₦800,000. What is the firm's gross profit?
Question 7
A company is considering exporting its product to a foreign market. The company has estimated that the cost of exporting the product will be ₦200,000 and the revenue from the sale of the product will be ₦500,000. If the company has a 20% tax rate, what is the net profit from the export transaction?
Question 8
A company's assets are valued at ₦5 billion, with liabilities of ₦2 billion. What is the company's equity?
Question 9
A firm is considering two different modes of transportation to transport its products. Mode A costs ₦500 per unit and has a fixed cost of ₦100,000. Mode B costs ₦300 per unit and has a fixed cost of ₦200,000. If the firm transports 1,000 units of the product, which mode will result in lower total costs?
Question 10
A firm is considering two different production processes to manufacture a product. Process A requires an initial investment of ₦1,000,000 and has a fixed cost of ₦500,000 per unit. Process B requires an initial investment of ₦500,000 and has a fixed cost of ₦200,000 per unit. If the firm produces 1,000 units of the product, which process will result in lower total costs?
Question 11
A company has a warehouse with a storage capacity of 5,000 units. The warehouse is currently 50% full, with 2,500 units stored. If 1,000 units are added to the warehouse, what is the new percentage of capacity?
Question 12
A consumer's indifference curve is given by U = 2Q1 + Q2, where U is the utility, Q1 is the quantity of good 1, and Q2 is the quantity of good 2. If the price of good 1 increases by 20% and the price of good 2 decreases by 15%, what is the new indifference curve?
Question 13
A sole trader's business is affected by the following factors: market conditions, competition, and government regulations. Which of the following is a key characteristic of a sole trader?
Question 14
A company is considering two different marketing strategies to promote its new product. Strategy A involves a high upfront cost of ₦1.5 million, but it is expected to generate a profit of ₦2.5 million in the first year. Strategy B involves a lower upfront cost of ₦500,000, but it is expected to generate a profit of ₦1.8 million in the first year. Which strategy should the company choose?
Question 15
A company is considering two different marketing strategies: one that targets a niche market with a high concentration of potential customers, and another that targets a broader market with a lower concentration of potential customers. If the company expects to spend ₦1,000,000 on marketing for each strategy, and the niche market strategy is expected to result in 10,000 sales, while the broader market strategy is expected to result in 50,000 sales, which strategy should the company choose if it expects to sell each unit for ₦500?
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