POST UTME BOWEN UNIVERSITY 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering two different production methods for its new product. Method A requires an initial investment of ₦1,500,000 and produces 10,000 units per year, while Method B requires an initial investment of ₦2,000,000 and produces 15,000 units per year. If the company expects to sell each unit for ₦500, what is the minimum number of years it must operate to break even using Method A?
A. 5
B. 6
C. 7
D. 8
Question 2
A bank offers a 5% interest rate on a savings account. If a customer deposits ₦10,000 into the account, how much interest will the customer earn in one year?
A. ₦500
B. ₦1,000
C. ₦2,000
D. ₦5,000
Question 3
A firm is considering two different advertising strategies for its new product. Strategy A involves a one-time payment of ₦500,000 to a popular celebrity to endorse the product, while Strategy B involves a series of 12 monthly payments of ₦50,000 to a popular social media influencer. If the firm expects to sell 10,000 units of the product per year, and each unit sells for ₦500, what is the total cost of Strategy A?
A. ₦500,000
B. ₦600,000
C. ₦700,000
D. ₦800,000
Question 4
A company is considering launching a new product in a foreign market. What are the key factors that the company should consider when deciding whether to enter the foreign market?
A. Market size, competition, and cultural differences.
B. Production costs, transportation costs, and exchange rates.
C. Government regulations, trade policies, and consumer preferences.
D. Marketing strategies, pricing, and distribution channels.
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current inputs are L = 4 and K = 9, what is the marginal product of labor?
A. 2
B. 4
C. 6
D. 8
Question 6
A company is considering two different modes of transportation for its goods: road and rail. The cost of transporting goods by road is ₦500 per kilometer, while the cost of transporting goods by rail is ₦300 per kilometer. If the company expects to transport 10,000 kilometers of goods per year, what is the total cost of transportation using the road mode?
A. ₦5,000,000
B. ₦5,500,000
C. ₦6,000,000
D. ₦6,500,000
Question 7
A company is considering two different transportation modes to move its products from the factory to the warehouse. The cost of using a truck is ₦10,000 per trip, while the cost of using a train is ₦5,000 per trip. If the company needs to make 10 trips, what is the total cost of using the train?
A. ₦50,000
B. ₦40,000
C. ₦30,000
D. ₦20,000
Question 8
A firm's production function is given by Q = 2L^0.5 K^0.5. If the firm's capital (K) is fixed at 16 units, and labor (L) is increased from 4 units to 9 units, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 9
In a perfectly competitive market, the law of diminishing marginal utility implies that the demand curve for a firm's product will be:
A. A downward-sloping curve
B. A horizontal line
C. A vertical line
D. An upward-sloping curve
Question 10
A consumer protection law requires that all businesses must provide a 30-day cooling-off period for customers to return goods. If a customer buys a product on the 29th of January and wants to return it, what is the latest date the customer can return the product?
A. 28th February
B. 29th February
C. 1st March
D. 2nd March
Question 11
A company's sole trader has a business that is involved in the storage of goods. The company's sole trader uses a warehouse that has a capacity of 1,000 square meters. If the company's sole trader stores 500 square meters of goods in a day, what is the remaining capacity of the warehouse?
A. 500 square meters
B. 750 square meters
C. 1,000 square meters
D. 1,250 square meters
Question 12
A consumer's indifference curve is given by the equation u(x,y) = 2x + 3y. If the consumer's current consumption bundle is (x,y) = (2,3), what is the marginal rate of substitution?
A. 2
B. 3
C. 4
D. 6
Question 13
A firm's cost function is given by C = 2L + 3K. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in its total cost?
A. 5%
B. 10%
C. 15%
D. 20%
Question 14
A company is considering exporting its products to a foreign market. What are the key factors that the company should consider when deciding whether to export?
A. Market size, competition, and cultural differences.
B. Production costs, transportation costs, and exchange rates.
C. Government regulations, trade policies, and consumer preferences.
D. Marketing strategies, pricing, and distribution channels.
Question 15
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 5%
B. 10%
C. 15%
D. 20%

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