POST UTME MADONNA UNIVERSITY 2020 Commerce | Objective

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Question 1 View Details
In a perfectly competitive market, the supply curve is upward-sloping because
Correct A. Firms are willing to supply more of the good as its price increases.
B. Firms are willing to supply less of the good as its price increases.
C. Firms are willing to supply the same quantity of the good regardless of its price.
D. Firms are willing to supply more of the good as its price decreases.

Correct Answer: A

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Question 2 View Details
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 4 and K = 9, respectively, what is the firm's current output?
A. 24
Correct B. 36
C. 48
D. 60

Correct Answer: B

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Question 3 View Details
A firm is considering two different production technologies: a traditional technology that requires 10 units of labor to produce 100 units of output, and a modern technology that requires 5 units of labor to produce 100 units of output. If the firm's current labor input is 20 units, what is the opportunity cost of using the modern technology?
A. 5
Correct B. 10
C. 15
D. 20

Correct Answer: B

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Question 4 View Details
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is P = 20, what is the firm's current quantity demanded?
A. 60
Correct B. 80
C. 100
D. 120

Correct Answer: B

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Question 5 View Details
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 25, respectively, what is the firm's current output?
A. 40
Correct B. 60
C. 80
D. 100

Correct Answer: B

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Question 6 View Details
A sole trader's business is registered under which of the following business units?
Correct A. Sole Trader
B. Partnership
C. Limited Liability Company
D. Cooperative Society

Correct Answer: A

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Question 7 View Details
A consumer protection law that prohibits false or misleading advertisements is known as?
A. Consumer Protection Act
B. Trade Practices Act
Correct C. Advertising Standards Authority Act
D. Fair Trading Act

Correct Answer: C

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Question 8 View Details
A company's production process can be described as?
A. Mass Production
B. Batch Production
C. Job Production
Correct D. Continuous Production

Correct Answer: D

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Question 9 View Details
A bank's primary function is to?
Correct A. Accept deposits and make loans
B. Provide investment advice and manage portfolios
C. Facilitate international trade and finance
D. Offer insurance and risk management services

Correct Answer: A

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Question 10 View Details
A risk management strategy that involves transferring risk to another party is known as?
A. Diversification
B. Hedging
C. Speculation
Correct D. Reinsurance

Correct Answer: D

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Question 11 View Details
A sole trader's business is registered under which of the following?
A. Partnership
B. Company
Correct C. Sole Trader
D. Limited Liability Partnership

Correct Answer: C

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Question 12 View Details
A company's memorandum of association is a document that outlines its
A. Objectives
B. Share Capital
C. Business Activities
Correct D. All of the above

Correct Answer: D

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Question 13 View Details
The main advantage of a sole trader's business is that it has
A. Limited Liability
B. Unlimited Liability
Correct C. Flexibility
D. Tax Benefits

Correct Answer: C

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Question 14 View Details
The main disadvantage of a company's business is that it has
A. Limited Liability
B. Unlimited Liability
Correct C. Complexity
D. Tax Benefits

Correct Answer: C

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Question 15 View Details
A company's articles of association is a document that outlines its
A. Objectives
B. Share Capital
C. Business Activities
Correct D. Management Structure

Correct Answer: D

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Question 16 View Details
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the number of labor hours, and K is the capital invested. If the company wants to increase its production by 20% while keeping labor hours constant, what percentage increase in capital investment is required?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 17 View Details
A firm's demand function is given by P = 100 - 2Q, where P is the price and Q is the quantity demanded. If the firm wants to maximize its revenue, what quantity should it produce?
A. 20
B. 30
Correct C. 40
D. 50

Correct Answer: C

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Question 18 View Details
A bank's balance sheet is given by Assets = Liabilities + Equity. If the bank's assets increase by 10% and its liabilities increase by 5%, what is the percentage increase in its equity?
A. 3%
B. 5%
C. 7%
Correct D. 9%

Correct Answer: D

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Question 19 View Details
A company's cost function is given by C = 100 + 2Q, where C is the cost and Q is the quantity produced. If the company wants to minimize its cost, what quantity should it produce?
A. 10
Correct B. 20
C. 30
D. 40

Correct Answer: B

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Question 20 View Details
A firm's revenue function is given by R = 100Q - 2Q^2, where R is the revenue and Q is the quantity sold. If the firm wants to maximize its revenue, what quantity should it sell?
A. 20
B. 30
Correct C. 40
D. 50

Correct Answer: C

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Question 21 View Details
In a perfectly competitive market, the law of diminishing marginal utility implies that the demand curve for a firm's product is likely to be:
A. a vertical line
B. a horizontal line
C. an upward-sloping curve
Correct D. a downward-sloping curve

Correct Answer: D

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Question 22 View Details
A firm's production function is given by Q = 2L^(1/2)K^(1/2). If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, then the marginal product of labor is:
Correct A. 1/4
B. 1/2
C. 1
D. 2

Correct Answer: A

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Question 23 View Details
A company is considering two different advertising strategies. The first strategy involves a one-time payment of ₦100,000, while the second strategy involves a monthly payment of ₦10,000 for 12 months. If the company's discount rate is 10%, which strategy is more valuable?
Correct A. The one-time payment strategy
B. The monthly payment strategy
C. Both strategies are equally valuable
D. Neither strategy is valuable

Correct Answer: A

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Question 24 View Details
A warehouse has a storage capacity of 1000 units. The warehouse is currently 75% full, and the storage cost per unit is ₦5. If the warehouse is filled to capacity, the total storage cost will be:
A. ₦375,000
B. ₦500,000
C. ₦625,000
Correct D. ₦750,000

Correct Answer: D

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Question 25 View Details
A company has a 20% chance of experiencing a loss of ₦100,000 and a 80% chance of experiencing a gain of ₦50,000. The expected value of the company's outcome is:
A. ₦2,000
Correct B. ₦4,000
C. ₦6,000
D. ₦8,000

Correct Answer: B

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