POST UTME GREENFIELD UNIVERSITY 2019 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 level of advertising and promotion, while Strategy B involves a low level of advertising and promotion. Which strategy is more likely to result in a higher return on investment (ROI)?
A. Strategy A, because it involves a high level of advertising and promotion.
B. Strategy B, because it involves a low level of advertising and promotion.
C. Strategy A, because it involves a high level of advertising and promotion, but Strategy B is more likely to result in a higher ROI.
D. Strategy B, because it involves a low level of advertising and promotion, but Strategy A is more likely to result in a higher ROI.
Question 2
The concept of specialization in production is closely related to the idea of comparative advantage. Explain how specialization can lead to increased efficiency and productivity in a firm.
A. Specialization leads to increased efficiency and productivity by allowing firms to focus on their core competencies and eliminate waste.
B. Specialization leads to decreased efficiency and productivity by limiting the range of products a firm can produce.
C. Specialization has no impact on efficiency and productivity.
D. Specialization leads to increased efficiency and productivity by allowing firms to take advantage of economies of scale.
Question 3
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing
A. diminishing returns
B. increasing costs
C. decreasing marginal revenue
D. increasing marginal cost
Question 4
A company is considering two different marketing strategies for its new product. Strategy A involves a high level of advertising and promotion, while Strategy B involves a low level of advertising and promotion. Which strategy is more likely to result in a higher return on investment (ROI) for the company?
A. Strategy A, because it involves a high level of advertising and promotion.
B. Strategy B, because it involves a low level of advertising and promotion.
C. Strategy A, because it involves a high level of advertising and promotion, but Strategy B is more likely to result in a higher ROI.
D. Strategy B, because it involves a low level of advertising and promotion, but Strategy A is more likely to result in a higher ROI.
Question 5
In a sole trader business, what is the primary disadvantage of using a sole proprietorship?
A. Limited liability
B. Easy to manage cash flow
C. Increased credibility with suppliers
D. No separation of personal and business finances
Question 6
A company's cost function is given by C = 2L + 3K, where C is cost, L is labor, and K is capital. If the company increases labor from 10 to 15 and capital from 5 to 8, what is the total change in cost?
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 7
A company has a share capital of ₦1,000,000, divided into 100,000 ordinary shares of ₦10 each. If the company issues 20,000 shares at a premium of ₦5 per share, what is the total amount received from the issue of shares?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 8
In a sole trader business, what is the primary advantage of using a business name?
A. Increased credibility with suppliers
B. Easy to manage cash flow
C. No separation of personal and business finances
D. Separate personal and business finances
Question 9
A company has the following insurance policy: 10% of the total value of the goods is covered against loss or damage. If the total value of the goods is ₦100,000, what is the maximum amount that can be claimed under this policy?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 10
A firm's supply function is given by Q = 100 + 2P, where Q is the quantity supplied and P is the price. If the firm's marginal cost is 50, what is the price elasticity of supply?
A. 0.5
B. 1
C. 2
D. 3
Question 11
A warehouse has a storage capacity of 10,000 units. The warehouse is currently 75% full. If 5,000 units are added to the warehouse, what is the new percentage of capacity?
A. 50%
B. 60%
C. 70%
D. 80%
Question 12
A consumer's indifference curve is given by the equation u(x,y) = 2x + 3y, where x is the quantity of good X consumed and y is the quantity of good Y consumed. If the consumer's income is ₦100,000 and the prices of good X and good Y are ₦50 and ₦30 respectively, how many units of good X should the consumer consume?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 13
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal revenue is 50, what is the price elasticity of demand?
A. 0.5
B. 1
C. 2
D. 3
Question 14
In a perfectly competitive market, the law of diminishing marginal utility implies that the marginal benefit of the last unit of a good consumed is always greater than the marginal cost of producing it. Which of the following is a correct statement regarding the relationship between marginal benefit and marginal cost?
A. Marginal benefit is always greater than marginal cost.
B. Marginal cost is always greater than marginal benefit.
C. Marginal benefit and marginal cost are equal.
D. Marginal benefit is less than marginal cost.
Question 15
A company's cost function is given by C = 100 + 2L + 3K, where C is the total cost, L is the labor input, and K is the capital input. If the company increases its labor input from 50 to 60 units and its capital input from 50 to 60 units, what is the percentage change in the total cost?
A. 10%
B. 20%
C. 30%
D. 40%

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: