POST UTME COAL CITY UNIVERSITY 2017 Commerce | Objective

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Question 1 View Details
The concept of 'opportunity cost' is central to the study of economics. What is the opportunity cost of choosing a particular course of action?
A. The cost of the chosen action
B. The cost of the alternative action
Correct C. The cost of the action that was not chosen
D. The cost of the action that was chosen

Correct Answer: C

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Question 2 View Details
A company has a production function given by Q = 2L + 3K, where Q is the quantity produced, L is the number of labor hours, and K is the amount of capital invested. If the company wants to produce 20 units, how many labor hours are required?
A. 10
Correct B. 20
C. 30
D. 40

Correct Answer: B

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Question 3 View Details
A firm is considering two different marketing strategies: Strategy A, which involves a high level of advertising and a low level of sales promotion, and Strategy B, which involves a low level of advertising and a high level of sales promotion. Which strategy is likely to be more effective?
Correct A. Strategy A
B. Strategy B
C. Both strategies are equally effective
D. Neither strategy is effective

Correct Answer: A

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Question 4 View Details
A company has a budget of ₦100,000 to spend on advertising. If the cost of advertising on television is ₦50,000 and the cost of advertising on radio is ₦30,000, how much is left for other forms of advertising?
Correct A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: A

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Question 5 View Details
A firm is considering two different types of insurance: Type A, which covers against loss of property, and Type B, which covers against loss of income. Which type of insurance is likely to be more beneficial to the firm?
A. Type A
Correct B. Type B
C. Both types are equally beneficial
D. Neither type is beneficial

Correct Answer: B

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Question 6 View Details
A company's sole trader is considering expanding its operations to a foreign market. Which of the following is a major advantage of exporting goods to a foreign market?
Correct A. Increased revenue
B. Reduced competition
C. Improved brand recognition
D. Enhanced market research

Correct Answer: A

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Question 7 View Details
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are 4 and 9 respectively, what is the firm's output?
A. 8
Correct B. 16
C. 32
D. 64

Correct Answer: B

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Question 8 View Details
A bank's balance sheet is given by Assets = Liabilities + Equity. If the bank's assets and liabilities are 100 and 50 respectively, what is the bank's equity?
A. 25
B. 50
Correct C. 75
D. 100

Correct Answer: C

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Question 9 View Details
A firm's cost function is given by C = 2L + 3K. If the firm's labor and capital inputs are 4 and 9 respectively, what is the firm's total cost?
A. 20
B. 30
Correct C. 40
D. 50

Correct Answer: C

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Question 10 View Details
A firm's revenue function is given by R = 2Q. If the firm's output is 16, what is the firm's revenue?
A. 32
Correct B. 64
C. 128
D. 256

Correct Answer: B

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Question 11 View Details
A company's sole trader has a business income of ₦250,000 and expenses of ₦180,000. Calculate the profit before tax.
Correct A. ₦70,000
B. ₦80,000
C. ₦90,000
D. ₦100,000

Correct Answer: A

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Question 12 View Details
A foreign trade agreement between Nigeria and the United States involves the export of 10,000 units of Nigerian-made textiles to the US. If each unit costs ₦5,000, calculate the total value of the export in US dollars, given the exchange rate of 1 USD = 425 NGN.
Correct A. ₦50,000,000
B. ₦60,000,000
C. ₦70,000,000
D. ₦80,000,000

Correct Answer: A

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Question 13 View Details
A company's insurance policy has a premium of ₦120,000. If the company pays a deductible of ₦20,000, calculate the excess.
Correct A. ₦100,000
B. ₦80,000
C. ₦60,000
D. ₦40,000

Correct Answer: A

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Question 14 View Details
A consumer protection law requires that a company provide a 30-day cooling-off period for customers to return goods. If a customer returns goods on the 31st day, what is the company's liability?
A. The company is liable for the full amount.
B. The company is liable for half the amount.
Correct C. The company is not liable.
D. The customer is liable for the full amount.

Correct Answer: C

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Question 15 View Details
A company's sole trader has a business income of ₦300,000 and expenses of ₦200,000. Calculate the profit before tax.
Correct A. ₦100,000
B. ₦120,000
C. ₦140,000
D. ₦160,000

Correct Answer: A

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Question 16 View Details
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company increases its labor input from 100 units to 121 units, and its capital input from 100 units to 121 units, by how many percentage points will its quantity produced increase?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 17 View Details
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal revenue function is MR = 200 - 4Q, what is the firm's optimal price?
A. ₦50
B. ₦75
Correct C. ₦100
D. ₦125

Correct Answer: C

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Question 18 View Details
A company's supply function is given by Q = 2P + 100, where Q is the quantity supplied and P is the price. If the company's marginal cost function is MC = 2P + 200, what is the company's optimal price?
A. ₦50
B. ₦75
Correct C. ₦100
D. ₦125

Correct Answer: C

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Question 19 View Details
A firm's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm increases its labor input from 100 units to 121 units, and its capital input from 100 units to 121 units, by how many percentage points will its quantity produced increase?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 20 View Details
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal revenue function is MR = 200 - 4Q, what is the firm's optimal price?
A. ₦50
B. ₦75
Correct C. ₦100
D. ₦125

Correct Answer: C

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Question 21 View Details
In a consumer protection context, what is the primary purpose of the Consumer Protection Act of 1999?
A. To regulate consumer transactions
Correct B. To protect consumer rights
C. To promote consumer education
D. To regulate consumer advertising

Correct Answer: B

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Question 22 View Details
A company is considering the use of a new marketing strategy that involves offering discounts to customers who purchase a certain product within a specific time frame. What type of marketing strategy is this?
A. Scarcity marketing
B. Loss leader marketing
Correct C. Time-limited offer marketing
D. Bundle pricing

Correct Answer: C

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Question 23 View Details
A warehouse manager is responsible for maintaining the inventory levels of a company. What is the primary goal of inventory management?
A. To minimize storage costs
B. To maximize storage capacity
Correct C. To maintain optimal inventory levels
D. To reduce inventory turnover

Correct Answer: C

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Question 24 View Details
A company is considering the use of a new insurance policy to protect against business risks. What type of insurance policy is this?
A. Liability insurance
B. Property insurance
Correct C. Business interruption insurance
D. Professional indemnity insurance

Correct Answer: C

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Question 25 View Details
A company is considering the use of a new advertising strategy that involves using social media platforms to reach its target audience. What type of advertising strategy is this?
A. Print advertising
B. Television advertising
Correct C. Digital advertising
D. Outdoor advertising

Correct Answer: C

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