POST UTME EKSU 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is considering two different marketing strategies: one that involves a high level of advertising and another that involves a low level of advertising. If the firm's demand function is given by Q = 100 - 2P and the price elasticity of demand is 0.5, which strategy should the firm choose?
A. High advertising
B. Low advertising
C. Both strategies are equally effective
D. Neither strategy is effective
Question 2
A firm is considering two different production technologies: one that requires 2 units of labor and 1 unit of capital to produce 1 unit of output, and another that requires 1 unit of labor and 2 units of capital to produce 1 unit of output. If the price of labor is ₦500 per hour and the price of capital is ₦1000 per unit, which technology should the firm choose?
A. Technology 1
B. Technology 2
C. Both technologies are equally profitable
D. Neither technology is profitable
Question 3
A sole trader is a type of business ownership where one person owns and operates the business. What is the main advantage of being a sole trader?
A. Easy to set up and manage
B. Limited liability
C. Ability to raise capital from investors
D. Flexibility to make decisions
Question 4
A consumer's indifference curve is given by U = 2x + 3y. If the consumer's income increases by 20%, what is the new indifference curve?
A. U = 2x + 3y
B. U = 2x + 3.6y
C. U = 2.4x + 3y
D. U = 2.4x + 3.6y
Question 5
A sole trader's business is not affected by the death of the owner because the business is a
A. partnership
B. company
C. proprietorship
D. joint venture
Question 6
A company is considering the introduction of a new product line. The product line has a high fixed cost, but a low variable cost. Which of the following marketing strategies would be most appropriate for this product line?
A. Penetration pricing
B. Skim pricing
C. Bundle pricing
D. Value-based pricing
Question 7
A company's Memorandum of Association is a document that:
A. Outlines the company's objectives and scope of business.
B. Specifies the company's share capital and its division among shareholders.
C. Provides details of the company's directors and their roles.
D. Contains the company's Articles of Association.
Question 8
A company is a type of business ownership where there are multiple owners who share the profits and losses. What is the main advantage of being a company?
A. Limited liability
B. Ability to raise capital from investors
C. Flexibility to make decisions
D. All of the above
Question 9
The concept of comparative advantage in international trade was first introduced by which of the following economists?
A. Adam Smith
B. David Ricardo
C. Thomas Malthus
D. John Stuart Mill
Question 10
A firm's supply curve is upward-sloping. What does this indicate about the firm's production costs?
A. The firm's production costs are increasing
B. The firm's production costs are decreasing
C. The firm's production costs are constant
D. The firm's production costs are unrelated to supply
Question 11
A company's production function is given by Q = 100L^0.5K^0.5. If the company wants to increase production by 10% and the price of labor is ₦500 per hour, what is the minimum increase in capital required?
A. ₦2500
B. ₦5000
C. ₦10000
D. ₦20000
Question 12
A firm's demand function is given by Q = 100 - 2P. If the firm's price increases by 10%, what is the new quantity demanded?
A. 90
B. 80
C. 70
D. 60
Question 13
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will
A. increase
B. decrease
C. remain constant
D. move in the opposite direction
Question 14
A firm's cost function is given by C = 100 + 2L + 3K. If the firm wants to minimize its costs and the price of labor is ₦500 per hour, what is the optimal level of capital?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 15
A firm is considering the use of a new production technology to increase its productivity. Which of the following production technologies would be most likely to increase productivity?
A. Mass production
B. Batch production
C. Job production
D. Flexible manufacturing

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