POST UTME EKSU 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
What is the main difference between a commercial bank and a merchant bank in the context of banking and financial institutions?
A. A commercial bank provides a wide range of financial services to individuals and businesses, while a merchant bank specializes in providing financial services to businesses.
B. A commercial bank specializes in providing financial services to businesses, while a merchant bank provides a wide range of financial services to individuals and businesses.
C. A commercial bank provides financial services to individuals and businesses, while a merchant bank provides financial services to businesses and governments.
D. A commercial bank provides financial services to businesses and governments, while a merchant bank provides financial services to individuals and businesses.
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current output is 16 units and the number of workers is 4, how many machines does the firm need to produce 25 units of output?
A. 4
B. 6
C. 8
D. 10
Question 3
A company is considering using a transportation mode that is fast and reliable. Which of the following transportation modes is likely to be the most expensive?
A. Air freight.
B. Rail transport.
C. Truck transport.
D. Ship transport.
Question 4
What is the primary purpose of the Central Bank of Nigeria in the context of monetary policy?
A. To regulate the money supply and maintain price stability.
B. To regulate the activities of commercial banks and maintain financial stability.
C. To regulate the exchange rate and maintain a stable currency.
D. To regulate the activities of financial institutions and maintain financial stability.
Question 5
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will
A. increase
B. decrease
C. remain constant
D. move in the opposite direction
Question 6
A firm's cost function is given by C = 2L + 3K, where L is the number of workers and K is the number of machines. If the firm's current output is 16 units and the number of workers is 4, how many machines does the firm need to produce 25 units of output?
A. 4
B. 6
C. 8
D. 10
Question 7
A firm's profit function is given by P = R - C, where R is the revenue function and C is the cost function. If the firm's current price is 20 units and the number of workers is 4, what is the firm's profit?
A. 80
B. 90
C. 100
D. 110
Question 8
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current output is 16 units and the number of workers is 4, how many machines does the firm need to produce 25 units of output?
A. 4
B. 6
C. 8
D. 10
Question 9
A firm's revenue function is given by R = 100p - 2p^2, where p is the price per unit. If the firm's current price is 20 units, what is the firm's marginal revenue?
A. 80
B. 90
C. 100
D. 110
Question 10
A company's financial statements show a net income of ₦2,000,000 and a total equity of ₦4,000,000. What is the company's return on equity (ROE)?
A. 50%
B. 60%
C. 70%
D. 80%
Question 11
What is the primary difference between a cartel and a monopoly in the context of home and foreign trade?
A. A cartel is a group of firms that collude to restrict output and raise prices, while a monopoly is a single firm that produces a good or service with no close substitutes.
B. A cartel is a single firm that produces a good or service with no close substitutes, while a monopoly is a group of firms that collude to restrict output and raise prices.
C. A cartel is a group of firms that collude to restrict output and raise prices, while a monopoly is a firm that produces a good or service with a high degree of market power.
D. A cartel is a firm that produces a good or service with a high degree of market power, while a monopoly is a group of firms that collude to restrict output and raise prices.
Question 12
A consumer has a utility function given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the goods are ₦200 and ₦300 respectively, and the consumer spends all their budget on good A, how much will they have left over to spend on good B?
A. ₦200
B. ₦300
C. ₦400
D. ₦500
Question 13
A company is considering using a just-in-time (JIT) inventory system. Which of the following is a key benefit of JIT?
A. Reduced inventory costs.
B. Improved product quality.
C. Increased flexibility in production.
D. All of the above.
Question 14
A warehouse has a storage capacity of 10,000 units. If 30% of the capacity is already occupied, how many units can still be stored?
A. 7,000
B. 8,000
C. 9,000
D. 10,000
Question 15
In a sole trade business, what is the primary advantage of using a single proprietorship structure?
A. Limited liability
B. Tax benefits
C. Flexibility in decision-making
D. Easy to establish

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