POST UTME CRAWFORD UNIVERSITY 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The concept of 'caveat emptor' in consumer protection law is best described as:
A. A warning to consumers to be cautious when making purchases
B. A principle that holds sellers liable for defects in goods
C. A doctrine that requires consumers to inspect goods before buying
D. A rule that prohibits sellers from making false claims about products
Question 2
A country is considering imposing a tariff on imports of a particular good. The tariff is set at 20% of the value of the good. If the country imports 100 units of the good worth ₦10,000 each, what is the total revenue generated by the tariff?
A. ₦2 million
B. ₦4 million
C. ₦6 million
D. ₦8 million
Question 3
A company's marketing strategy involves creating a sense of urgency among customers to purchase a product. This tactic is an example of:
A. Scarcity marketing
B. Loss aversion
C. Social proof
D. Reciprocity
Question 4
A company's warehouse is storing goods worth ₦5,000,000. The goods are insured against theft and damage. If the insurance premium is 2% of the total value of the goods, and the company pays an additional ₦50,000 as a deductible, what is the total cost of insurance for the goods?
A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦180,000
Question 5
A company is considering investing in a new warehouse to store its goods. The cost of building the warehouse is ₦5 million, and the company expects to save ₦1 million per year in transportation costs by using the warehouse. If the company expects to use the warehouse for 5 years, what is the net present value (NPV) of the investment?
A. ₦2 million
B. ₦3 million
C. ₦4 million
D. ₦5 million
Question 6
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to increase its output by 20%, what percentage increase in labor and capital is required?
A. 10% increase in labor and 10% increase in capital
B. 20% increase in labor and 20% increase in capital
C. 15% increase in labor and 15% increase in capital
D. 25% increase in labor and 25% increase in capital
Question 7
A company has two factories, A and B, producing the same product. Factory A has a production function Q_A = 2L_A^(1/2)K_A^(1/2), while factory B has a production function Q_B = 2L_B^(1/2)K_B^(1/2). If factory A produces 100 units of output with 10 units of labor and 10 units of capital, and factory B produces 100 units of output with 5 units of labor and 20 units of capital, which factory has a higher marginal product of labor?
A. Factory A
B. Factory B
C. Both factories have the same marginal product of labor
D. Neither factory has a higher marginal product of labor
Question 8
A bank has a reserve requirement of 10% and a cash reserve of ₦1,000,000. If the bank's total deposits are ₦10,000,000, what is the bank's excess reserves?
A. ₦900,000
B. ₦1,000,000
C. ₦1,100,000
D. ₦1,200,000
Question 9
A firm's revenue function is given by R = 100x - 2x^2. If the firm wants to maximize its revenue, what is the optimal price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 10
A firm has a production function Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm wants to increase output by 20% while keeping labor constant, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 11
A company's foreign trade policy involves imposing a tariff on imported goods. This policy is an example of:
A. Export subsidy
B. Import tariff
C. Quota
D. Non-tariff barrier
Question 12
A company's warehouse is used to store finished goods before they are shipped to customers. This is an example of which of the following?
A. Raw Materials Storage
B. Finished Goods Storage
C. Work-in-Progress Storage
D. Inventory Control
Question 13
A bank's reserve requirement is 10% of its total deposits. If the bank has a total deposit of ₦10,000,000, what is the minimum amount of cash the bank must hold in reserve?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 14
A firm is considering two different modes of transportation for its goods: road and rail. The cost of transporting goods by road is ₦100 per kilometer, while the cost of transporting goods by rail is ₦80 per kilometer. If the firm needs to transport 500 kilometers of goods, what is the total cost of transportation by road and rail?
A. ₦50,000
B. ₦60,000
C. ₦80,000
D. ₦100,000
Question 15
A company's marketing mix includes product, price, promotion, and place. What is the primary goal of this marketing mix?
A. To increase sales
B. To reduce costs
C. To improve customer satisfaction
D. To increase market share

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