POST UTME MOUNTAIN TOP UNIVERSITY 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer protection agency has received complaints about a company's misleading advertising. The agency has collected the following data on the company's advertising claims and the actual product features:
A. The agency should take no action against the company.
B. The agency should issue a warning to the company.
C. The agency should impose a fine on the company.
D. The agency should revoke the company's license.
Question 2
A firm's home market is the domestic market where it operates. What is the primary advantage of operating in a firm's home market?
A. Lower transportation costs
B. Familiarity with local laws and regulations
C. Access to a large customer base
D. Ability to control the market
Question 3
A firm's production function is given by Q = 100L^0.5K^0.25, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm increases its labor input from 100 to 121 units, and its capital input from 100 to 121 units, by how many percentage points will the quantity produced increase?
A. 10%
B. 15%
C. 20%
D. 25%
Question 4
A sole trader's business is not registered with the Corporate Affairs Commission (CAC). Which of the following is a consequence of this?
A. The sole trader's business is not entitled to limited liability.
B. The sole trader's business is not required to file annual returns.
C. The sole trader's business is not eligible for tax deductions.
D. The sole trader's business is not subject to regulatory oversight.
Question 5
A firm's foreign market is the international market where it operates. What is the primary challenge faced by firms operating in foreign markets?
A. Language barriers
B. Cultural differences
C. Different laws and regulations
D. All of the above
Question 6
A consumer has purchased a product with a warranty. Which of the following is a key provision of the Consumer Protection Act?
A. The right to return the product within a specified timeframe
B. The right to a full refund in the event of a defect
C. The right to compensation for damages or losses incurred
D. The right to a replacement product of equal value
Question 7
In a market with perfect competition, the demand curve for a firm's product is given by the equation ( Q = 100 - 2P ). If the firm's marginal revenue (MR) is given by the equation ( MR = 50 - P ), find the equilibrium price and quantity.
A. ( P = 25, Q = 75 )
B. ( P = 50, Q = 50 )
C. ( P = 75, Q = 25 )
D. ( P = 100, Q = 0 )
Question 8
A firm is considering entering a new market. Which of the following is a key consideration for the firm?
A. The level of competition in the market
B. The size of the market
C. The growth potential of the market
D. All of the above
Question 9
A company exports goods worth ₦1,000,000 to a foreign country. If the exchange rate is 1 USD = 360 Naira, how much is the export worth in USD?
A. 2,778.57
B. 2,500
C. 3,000
D. 3,500
Question 10
A consumer protection agency has been established to regulate the activities of businesses in a particular industry. Which of the following is a key responsibility of this agency?
A. To ensure that businesses comply with all relevant laws and regulations
B. To investigate complaints from consumers and take action against businesses that have breached consumer rights
C. To promote fair competition among businesses in the industry
D. To provide training and education to businesses on consumer protection laws and regulations
Question 11
A firm is considering outsourcing some of its production activities to a foreign country. Which of the following is a key advantage of this strategy?
A. Lower labor costs
B. Access to new markets
C. Improved quality control
D. Reduced transportation costs
Question 12
A bank's cash reserve ratio is 20%. If the bank has a total deposit of ₦10,000,000, how much cash must it reserve?
A. ₦2,000,000
B. ₦1,500,000
C. ₦2,500,000
D. ₦3,000,000
Question 13
A country has a trade deficit of 100 million and a trade surplus of 50 million with its trading partners. What is the overall balance of trade for this country?
A. Trade deficit of 50 million
B. Trade surplus of 50 million
C. Trade deficit of 100 million
D. Trade surplus of 100 million
Question 14
A consumer purchases a product with a price tag of ₦1,500. If the consumer pays with a ₦500 note and ₦1,000 in coins, what is the change due to the consumer?
A. ₦0
B. ₦250
C. ₦500
D. ₦1,000
Question 15
A firm'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 firm increases its labor input from 50 to 60 units, and its capital input from 50 to 60 units, by how much will the total cost increase?
A. ₦100
B. ₦200
C. ₦300
D. ₦400

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