POST UTME CRAWFORD UNIVERSITY 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering two different marketing strategies for its new product. Strategy A involves a high upfront cost of ₦1,500,000, but is expected to generate ₦3,000,000 in revenue over the first year. Strategy B involves a lower upfront cost of ₦500,000, but is expected to generate ₦2,000,000 in revenue over the first year. Which strategy should the company choose?
A. Strategy A
B. Strategy B
C. Both strategies are equally viable
D. Neither strategy is viable
Question 2
The concept of 'Gresham's Law' in international trade is closely related to the idea of 'bad money driving out good money'. What is the primary reason for this phenomenon?
A. The devaluation of a currency leads to a decrease in the value of exports.
B. The overproduction of a currency leads to a decrease in its value.
C. The hoarding of a currency leads to a decrease in its value.
D. The devaluation of a currency leads to an increase in the value of imports.
Question 3
A country's GNP is given by GNP = C + I + G + (X - M). If the country's consumption is ₦500, investment is ₦200, government spending is ₦300, exports are ₦1000, and imports are ₦800, what is the country's GNP?
A. ₦2500
B. ₦3000
C. ₦3500
D. ₦4000
Question 4
A firm is considering investing in a new project that has a net present value (NPV) of ₦1,500,000. The firm's cost of capital is 12% per annum. What is the internal rate of return (IRR) of the project?
A. 15%
B. 12%
C. 10%
D. 8%
Question 5
A producer's production function is given by the equation Q = 2L^0.5 * K^0.5. What is the marginal product of labor?
A. \frac{L^{0.5}}{2K^{0.5}}
B. \frac{2L^{0.5}K^{0.5}}{K}
C. \frac{2L^{0.5}K^{0.5}}{L}
D. \frac{L^{0.5}}{K^{0.5}}
Question 6
A firm has a risk management policy that requires it to pay a premium of ₦500 for every ₦1000 of assets. If the firm has ₦500,000 in assets, how much premium will the firm pay?
A. ₦2500
B. ₦5000
C. ₦7500
D. ₦10,000
Question 7
A sole trader's business is considered a separate legal entity from its owner. However, the owner's personal assets are still at risk in case of business debts. What is the name of this type of risk?
A. Unlimited liability
B. Limited liability
C. Personal liability
D. Business liability
Question 8
A company is considering the use of just-in-time (JIT) inventory management system. Which of the following benefits would be most relevant to the company?
A. Reduced inventory costs
B. Improved product quality
C. Increased flexibility in production
D. Enhanced customer satisfaction
Question 9
A firm is considering two different advertising strategies for its new product. Strategy A involves a higher initial investment but lower ongoing costs, while Strategy B involves a lower initial investment but higher ongoing costs. If the firm expects to sell 10,000 units per year for 5 years, and the market price of the product is ₦500 per unit, which advertising strategy should the firm choose?
A. Strategy A
B. Strategy B
C. Strategy C
D. Strategy D
Question 10
A firm is considering two different production methods for its new product. Method A involves a higher initial investment but lower production costs, while Method B involves a lower initial investment but higher production costs. If the firm expects to produce 10,000 units per year for 5 years, and the market price of the product is ₦500 per unit, which production method should the firm choose?
A. Method A
B. Method B
C. Method C
D. Method D
Question 11
A consumer has a utility function U(x, y) = 2x + 3y, where x and y are the quantities of two goods. The prices of the goods are ₦5,000 and ₦3,000, respectively. Using the budget constraint and utility function, determine the consumer's optimal consumption bundle.
A. x = 2 units, y = 1 unit
B. x = 1 unit, y = 2 units
C. x = 3 units, y = 0 units
D. x = 0 units, y = 3 units
Question 12
A company is considering the use of a foreign exchange risk management strategy to mitigate the impact of exchange rate fluctuations on its exports. Which of the following strategies would be most effective?
A. Hedging
B. Speculation
C. Diversification
D. Exporting to multiple countries
Question 13
A consumer is considering purchasing a product that has a 2-year warranty. What is the primary implication of this warranty?
A. The product is of high quality.
B. The product is of average quality.
C. The product is of low quality.
D. The product is of unknown quality.
Question 14
A firm's demand function is given by Q = 100 - 2P. If the firm's price is ₦20, what is the firm's quantity demanded?
A. 40
B. 60
C. 80
D. 100
Question 15
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost. What is the opportunity cost of producing a good?
A. The cost of producing the good in terms of other goods that could be produced instead
B. The cost of producing the good in terms of labor hours
C. The cost of producing the good in terms of raw materials
D. The cost of producing the good in terms of capital investment

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