POST UTME ELIZADE UNIVERSITY 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering two different modes of transportation for its goods: road transport and rail transport. The cost of road transport is given by C_R = 2Q + 5, where Q is the quantity of goods transported, while the cost of rail transport is given by C_R = Q^2 + 3Q. If the company wants to transport 100 units of goods, which mode of transportation will be cheaper?
A. Road transport
B. Rail transport
C. Both modes of transportation are equally expensive
D. Neither mode of transportation is cheaper
Question 2
A company's production function is given by Q = 100L^0.5K^0.5. If the company increases its labor input by 20% and capital input by 15%, by what percentage will the quantity produced increase?
A. 10%
B. 12%
C. 15%
D. 18%
Question 3
A firm produces two goods, X and Y, using two inputs, labor (L) and capital (K). The production function for good X is given by X = 2L + 3K, while the production function for good Y is given by Y = 3L + 2K. If the firm has 10 units of labor and 8 units of capital, how many units of good X will it produce?
A. 20
B. 30
C. 40
D. 50
Question 4
A company's inventory management system involves the use of a first-in-first-out (FIFO) inventory valuation method. If the company has 100 units of a product with a cost of ₦500 per unit, and 50 units of the same product with a cost of ₦600 per unit, what is the total value of the inventory?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 5
A consumer has a budget of ₦1000 and a preference for two goods, A and B. The prices of the goods are ₦200 and ₦300 respectively. If the consumer spends all of their budget, what is the consumer's indifference curve?
A. 45° line
B. Isoquant
C. Indifference curve
D. Budget constraint
Question 6
A consumer purchases a product online and receives a defective item. The consumer files a complaint with the company, but the company refuses to provide a refund. What is the consumer's best course of action?
A. File a lawsuit against the company
B. Contact the company's customer service department
C. Seek mediation from a consumer protection agency
D. Post a negative review on social media
Question 7
A bank's cash management system involves the use of a cash management software that automates the process of reconciling cash transactions. If the software is able to reconcile 90% of the transactions accurately, what is the probability that a randomly selected transaction will be reconciled accurately?
A. 0.1
B. 0.2
C. 0.3
D. 0.9
Question 8
A warehouse manager is responsible for ensuring that inventory levels are maintained at optimal levels. What is the optimal inventory level, and how can the manager determine it?
A. The optimal inventory level is the maximum level of inventory that can be held in the warehouse
B. The optimal inventory level is the minimum level of inventory that can be held in the warehouse
C. The optimal inventory level is the level of inventory that minimizes holding costs and stockouts
D. The optimal inventory level is the level of inventory that maximizes sales and revenue
Question 9
A company's marketing strategy involves the use of social media platforms to reach its target audience. However, the company has noticed a decline in engagement rates over the past quarter. What could be the reason for this decline, and how can the company adjust its marketing strategy to improve engagement?
A. The company's target audience has shifted to other social media platforms
B. The company's content is no longer relevant to its target audience
C. The company's social media presence is not being maintained regularly
D. The company's marketing budget has been reduced
Question 10
A company's marketing mix consists of the 4 Ps: Product, Price, Place, and Promotion. Which of the following is NOT one of the 4 Ps?
A. Product
B. Price
C. Place
D. Profit
Question 11
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 by 20% and capital input by 15%, by what percentage will the quantity produced increase?
A. 10%
B. 12%
C. 15%
D. 18%
Question 12
A company is considering the use of a new transportation mode to reduce costs. Which of the following transportation modes is likely to be the most cost-effective?
A. Air freight
B. Rail transport
C. Truck transport
D. Ship transport
Question 13
A company is considering the purchase of a new insurance policy to protect against potential losses. What type of insurance policy would be most suitable for the company, and why?
A. Liability insurance to protect against lawsuits
B. Property insurance to protect against damage to assets
C. Business interruption insurance to protect against losses due to business closure
D. Workers' compensation insurance to protect against employee injuries
Question 14
A life insurance policy has a premium of ₦500,000 per annum. If the policyholder dies after 5 years, the insurance company pays a lump sum of ₦10 million. What is the present value of the policy if the discount rate is 8% per annum?
A. ₦2,500,000
B. ₦3,000,000
C. ₦3,500,000
D. ₦4,000,000
Question 15
A country's balance of payments (BOP) is given by the following equation: BOP = X - M, where X is the value of exports and M is the value of imports. If the country's exports are valued at ₦100 billion and its imports are valued at ₦120 billion, what is the country's balance of payments?
A. ₦20 billion surplus
B. ₦20 billion deficit
C. ₦40 billion surplus
D. ₦40 billion deficit

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