POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is considering two investment projects, A and B. Project A has a higher initial investment but generates a higher expected return. Project B has a lower initial investment but generates a lower expected return. Which project should the firm choose?
A. Project A because it has a higher expected return.
B. Project B because it has a lower initial investment.
C. Project A because it has a higher initial investment.
D. Project B because it has a lower expected return.
Question 2
A firm's foreign trade involves importing raw materials and exporting finished goods. Which of the following is a key advantage of this strategy?
A. Reduced production costs
B. Increased market share
C. Improved product quality
D. Enhanced supply chain efficiency
Question 3
A firm's insurance policy involves liability insurance, property insurance, and workers' compensation insurance. Which of the following is a key benefit of liability insurance?
A. Reduced business costs
B. Improved customer satisfaction
C. Enhanced reputation
D. Protection against lawsuits
Question 4
A firm is producing a good with a total revenue of ₦1200 and a total cost of ₦800. What is the firm's profit?
A. ₦200
B. ₦400
C. ₦600
D. ₦800
Question 5
A sole trader is a type of business organization that is owned and operated by one individual. Which of the following is a characteristic of a sole trader?
A. It has unlimited liability.
B. It has limited liability.
C. It is easy to set up.
D. It is difficult to dissolve.
Question 6
A company is considering implementing a just-in-time (JIT) inventory system to reduce inventory costs. Which of the following is a key benefit of JIT inventory systems?
A. Reduced inventory costs
B. Improved product quality
C. Increased customer satisfaction
D. Reduced lead times
Question 7
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm wants to increase output by 20% while keeping labor constant, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 8
A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is a key benefit of using a mix of these strategies?
A. Increased brand awareness
B. Improved customer engagement
C. Enhanced product differentiation
D. Better return on investment
Question 9
The concept of 'production' in commerce refers to the process of creating a product or service that meets the needs of consumers. Which of the following is NOT a characteristic of production?
A. It involves the transformation of inputs into outputs.
B. It is a one-time activity.
C. It is a continuous process.
D. It is a necessary condition for profit maximization.
Question 10
A firm's production function is given by Q = 2L^2 + 3K, where Q is output, L is labor, and K is capital. If the firm's labor and capital are fixed at 5 and 10 respectively, what is the firm's output?
A. 20
B. 30
C. 40
D. 50
Question 11
A firm's cost function is given by C = 2L + 3K, where C is cost, L is labor, and K is capital. If the firm wants to minimize cost while keeping labor constant, what is the optimal level of capital?
A. 0
B. 10
C. 20
D. 30
Question 12
A consumer has a budget constraint of 100, with two goods: X and Y. The price of good X is 5, and the price of good Y is 10. If the consumer spends 80 on good X, how much is left for good Y?
A. 10
B. 20
C. 30
D. 40
Question 13
In a perfectly competitive market, the supply curve is determined by the marginal cost (MC) of production. If the MC curve intersects the average variable cost (AVC) curve at point E, and the MC curve intersects the average total cost (ATC) curve at point F, what is the likely outcome for the firm?
A. The firm will shut down because the AVC is greater than the price.
B. The firm will operate at point E because the AVC is less than the price.
C. The firm will operate at point F because the ATC is less than the price.
D. The firm will operate at point E because the MC is less than the price.
Question 14
A consumer has a utility function U(X, Y) = 2X + 3Y. If the prices of X and Y are 10 and 20, respectively, and the consumer's budget is 100, what is the likely outcome for the consumer's utility?
A. The consumer's utility will increase.
B. The consumer's utility will decrease.
C. The consumer's utility will remain the same.
D. The consumer's utility will increase by 10 units.
Question 15
A company has a share capital of ₦1,000,000 and a reserve of ₦500,000. What is the total amount of capital?
A. ₦1,500,000
B. ₦1,500,500
C. ₦1,500,000
D. ₦1,500,500

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