POST UTME MOUNTAIN TOP UNIVERSITY 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer protection agency has received a complaint from a customer who was sold a product that did not meet the required standards. The product was purchased for ₦50,000 and the customer is seeking a refund. If the product is deemed to be defective, the consumer protection agency will order the manufacturer to refund the full amount. However, if the product is deemed to be not defective, the customer will be required to pay a fee of ₦10,000 for the cost of testing. What is the expected value of the outcome for the customer?
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 2
A firm's revenue function is given by R(Q) = 2Q^2 + 3Q, where R(Q) is the total revenue and Q is the quantity produced. If the firm produces 5 units, what is the total revenue?
A. ₦35
B. ₦45
C. ₦55
D. ₦65
Question 3
A firm's cost function is given by C(Q) = 2Q^2 + 3Q + 1, where C(Q) is the total cost and Q is the quantity produced. If the firm produces 10 units, what is the total cost?
A. ₦101
B. ₦201
C. ₦301
D. ₦401
Question 4
A production process that involves breaking down a raw material into smaller components is
A. Manufacturing
B. Assembly
C. Disassembly
D. Decomposition
Question 5
A consumer has a budget of ₦500 to spend on two goods, X and Y. The prices of X and Y are ₦2 and ₦3, respectively. If the consumer's indifference curves are given by U = 2X + 3Y and U = 4X + 5Y, which of the following combinations of X and Y will the consumer choose?
A. (X = 100, Y = 150)
B. (X = 150, Y = 100)
C. (X = 200, Y = 50)
D. (X = 250, Y = 25)
Question 6
A company is sued for violating the Consumer Protection Act. The company claims that it did not intentionally deceive the consumer. However, the court rules that the company is liable for damages. Which of the following is a valid defense for the company?
A. The company can prove that the consumer was not deceived.
B. The company can prove that the consumer was not harmed.
C. The company can prove that the consumer was not a consumer at the time of the transaction.
D. The company can prove that the consumer was not aware of the deception.
Question 7
A sole trader's business is registered under which of the following?
A. Partnership
B. Limited Liability Company
C. Sole Trader
D. Cooperative Society
Question 8
A company has a portfolio of investments that generates a return of 8% per annum. If the company's cost of capital is 10% per annum, what is the expected return on equity?
A. 6%
B. 8%
C. 10%
D. 12%
Question 9
A sole trader is sued by a customer for breach of contract. The sole trader claims that the contract was not enforceable because it was not in writing. However, the court rules that the contract is enforceable. Which of the following is a valid reason for the court's decision?
A. The contract was made in a foreign country.
B. The contract was made between two parties who are not in the same country.
C. The contract was made between two parties who are not in the same state.
D. The contract was made between two parties who are not in the same city.
Question 10
A consumer protection agency has received a complaint from a customer who was sold a defective product. The product was purchased for ₦20,000 and the customer is seeking a refund. If the product is deemed to be defective, the consumer protection agency will order the manufacturer to refund the full amount. However, if the product is deemed to be not defective, the customer will be required to pay a fee of ₦5,000 for the cost of testing. What is the expected value of the outcome for the customer?
A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000
Question 11
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company 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. 20%
C. 30%
D. 40%
Question 12
In a foreign trade transaction, a Nigerian exporter sold goods worth ₦1,500,000 to a foreign buyer. The exporter was paid in US dollars, and the exchange rate at the time of payment was ₦420 per US dollar. If the exporter's bank charged a commission of 2% on the transaction, what was the exporter's net earnings in naira?
A. ₦1,400,000
B. ₦1,500,000
C. ₦1,600,000
D. ₦1,700,000
Question 13
A consumer has a budget of ₦10,000 and wants to buy two goods, A and B. The price of good A is ₦5,000 and the price of good B is ₦3,000. If the consumer wants to buy 2 units of good A, how many units of good B can the consumer buy?
A. 2 units
B. 3 units
C. 4 units
D. 5 units
Question 14
A company's marketing strategy involves a 20% discount on all products sold during a promotional period. If a customer buys a product that originally costs ₦1,000, how much will they pay after the discount?
A. ₦800
B. ₦900
C. ₦1,000
D. ₦1,200
Question 15
A firm's production function is given by Q = 100L^0.5K^0.5, 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. 20%
C. 30%
D. 40%

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