POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering investing in a new project. The project has a high potential return on investment, but it also carries a high level of risk. What is the main consideration for the company?
A. The potential return on investment
B. The level of risk
C. The time required to complete the project
D. The cost of the project
Question 2
A company has two production facilities, A and B. Facility A produces 80% of the company's output, while facility B produces 20%. If facility A has a fixed cost of ₦1,000,000 and a variable cost of ₦200 per unit, while facility B has a fixed cost of ₦500,000 and a variable cost of ₦150 per unit, what is the total cost of producing 10,000 units?
A. ₦2,500,000
B. ₦2,750,000
C. ₦3,000,000
D. ₦3,250,000
Question 3
A company's sole trader, Mr. A, has a profit of ₦150,000. If he has a capital of ₦200,000, what is his return on investment?
A. 75%
B. 80%
C. 85%
D. 90%
Question 4
A consumer has a budget of ₦10,000 and a demand curve for a product that is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. The consumer also has a budget constraint given by the equation P = 5,000 - 2Q. What is the consumer's optimal quantity demanded?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 5
A firm is considering two different insurance policies for its employees. Policy A costs ₦500,000 per year and provides a benefit of ₦1,000,000 in the event of an accident. Policy B costs ₦750,000 per year and provides a benefit of ₦1,500,000 in the event of an accident. If the firm expects to have an accident once every 5 years, which policy should it choose to maximize its expected utility?
A. Policy A
B. Policy B
C. Both policies are equally desirable
D. Neither policy is desirable
Question 6
A company specializes in producing a particular type of textile. The company's production process involves a series of complex steps, including spinning, weaving, and dyeing. What is the economic concept that describes the company's production process?
A. Division of Labor
B. Economies of Scale
C. Comparative Advantage
D. Opportunity Cost
Question 7
Determine the value of x in the equation ( rac{x}{2} + 5 = 11 ) using the method of substitution.
A. 6
B. 7
C. 8
D. 9
Question 8
A firm is considering expanding its production capacity to meet increasing demand. However, the firm is concerned about the opportunity cost of producing more goods. What is the opportunity cost of producing more goods?
A. The cost of producing an alternative good
B. The cost of importing the good
C. The cost of producing a different good
D. The cost of producing the same good
Question 9
A company is considering two marketing strategies: a mass marketing approach or a niche marketing approach. Which strategy is more likely to be effective in a market with a large number of competitors?
A. Mass marketing
B. Niche marketing
C. Both are equally effective
D. Neither is effective
Question 10
A company is considering two different production processes for its new product. Process A has a fixed cost of ₦500,000 and a variable cost of ₦200 per unit. Process B has a fixed cost of ₦300,000 and a variable cost of ₦150 per unit. If the selling price of the product is ₦350 per unit, which process should the company choose to maximize its profit?
A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Question 11
A consumer protection agency has received complaints about a company's misleading advertising. The agency has discovered that the company has been using a false claim to promote its product. What is the legal consequence of the company's actions?
A. The company will be fined ₦100,000
B. The company will be sued for damages
C. The company will be forced to recall the product
D. The company will be banned from advertising
Question 12
A firm imports goods worth ₦1,500,000. If the exchange rate is 1 USD = ₦450, how much is the import duty?
A. ₦675,000
B. ₦675,000
C. ₦675,000
D. ₦675,000
Question 13
A consumer has a budget of ₦5,000 and a demand curve for a product that is given by the equation Q = 50 - P, where Q is the quantity demanded and P is the price. The consumer also has a budget constraint given by the equation P = 5,000 - 2Q. What is the consumer's optimal quantity demanded?
A. 10 units
B. 15 units
C. 20 units
D. 25 units
Question 14
A consumer has a budget of ₦10,000 and a demand curve for a product that is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. What is the consumer's optimal quantity demanded?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 15
A company is considering two different modes of communication: email and phone. The cost of sending an email is ₦10, while the cost of making a phone call is ₦20. If the company needs to communicate with 100 customers, what is the total cost of communication using email and phone respectively?
A. ₦1,000 for email and ₦2,000 for phone
B. ₦2,000 for email and ₦1,000 for phone
C. ₦1,000 for email and ₦1,000 for phone
D. ₦2,000 for email and ₦2,000 for phone

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