POST UTME ELIZADE UNIVERSITY 2022 Commerce | Objective

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Question 1
A consumer has a utility function given by U = 2A + 3B, where A and B are the quantities of two goods consumed. If the consumer's income is 100 units of currency and the prices of the goods are 5 units of currency for A and 10 units of currency for B, what is the consumer's optimal consumption bundle?
A. 20 units of A and 10 units of B
B. 30 units of A and 5 units of B
C. 40 units of A and 0 units of B
D. 0 units of A and 20 units of B
Question 2
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. Which of the following is an example of a country that has a comparative advantage in producing a good?
A. A country with a large labor force and low wages
B. A country with a large land area and fertile soil
C. A country with a highly skilled workforce and advanced technology
D. A country with a small population and high standard of living
Question 3
A firm's supply function is given by the equation ( P = 50 + 2Q ), where P is the price and Q is the quantity supplied. If the firm wants to increase its revenue by 20%, how much should it increase its price?
A. ₦10
B. ₦20
C. ₦30
D. ₦50
Question 4
A company is considering two different investment projects. Project A has a higher initial investment but generates higher returns over time. Project B has a lower initial investment but generates lower returns over time. Which of the following is a correct statement regarding the two projects?
A. Project A is riskier than Project B because it has a higher initial investment.
B. Project B is riskier than Project A because it generates lower returns over time.
C. Project A is less risky than Project B because it generates higher returns over time.
D. Project B is more attractive than Project A because it has a lower initial investment.
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm's labor input is increased by 20% and the capital input remains constant, what is the percentage change in the quantity produced?
A. 10%
B. 20%
C. 30%
D. 40%
Question 6
A company has a capital structure consisting of 60% equity and 40% debt. If the company's cost of equity is 12% and the cost of debt is 8%, what is the company's weighted average cost of capital (WACC)?
A. 9.6%
B. 10.4%
C. 11.2%
D. 12.0%
Question 7
A company has a portfolio of assets with a beta of 1.2. If the market risk premium is 5% and the risk-free rate is 2%, what is the expected return on the portfolio?
A. 4.4%
B. 5.2%
C. 6.0%
D. 6.8%
Question 8
A company produces a product that is subject to a patent. Which of the following is a type of patent?
A. Utility patent
B. Design patent
C. Plant patent
D. Reissue patent
Question 9
A consumer purchases a product online, but upon delivery, finds that it is damaged. The consumer seeks redress from the seller, citing the Consumer Protection Act. Which of the following is a fundamental principle of consumer protection?
A. The right to choose
B. The right to safety
C. The right to be heard
D. The right to information
Question 10
A consumer protection agency has received complaints about a company's misleading advertising practices. Which of the following is a potential consequence of this behavior?
A. Financial penalties
B. Reputation damage
C. Loss of business licenses
D. All of the above
Question 11
A bank's balance sheet is given by the equation ( AS = D + E ), where AS is the assets, D is the deposits, and E is the equity. If the bank wants to increase its assets by 15% while keeping deposits constant, how much should it increase its equity?
A. ₦5000
B. ₦10,000
C. ₦20,000
D. ₦50,000
Question 12
A firm is considering expanding its operations into a new market. The firm has conducted a market analysis and determined that the new market has a high growth potential. However, the firm is concerned about the high level of competition in the new market. Which of the following is a correct statement regarding the firm's decision?
A. The firm should expand its operations into the new market because of its high growth potential.
B. The firm should not expand its operations into the new market because of the high level of competition.
C. The firm should conduct further market research to determine the feasibility of expanding into the new market.
D. The firm should consider partnering with a local firm to reduce the level of competition.
Question 13
A firm's demand function is given by the equation ( P = 100 - 2Q ), where P is the price and Q is the quantity demanded. If the firm wants to increase its revenue by 10%, how much should it increase its price?
A. ₦5
B. ₦10
C. ₦20
D. ₦50
Question 14
A company's marketing strategy involves creating a sense of urgency among its customers. This is an example of which of the following marketing tactics?
A. Scarcity
B. Exclusivity
C. Social Proof
D. Liking
Question 15
A firm is considering investing in a new project that has a net present value (NPV) of ₦1,500,000. The cost of capital for the firm is 12% per annum. What is the internal rate of return (IRR) of the project?
A. 12%
B. 15%
C. 18%
D. 20%

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