POST UTME NILE UNIVERSITY 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's purchasing decision is influenced by several factors, including income, price, and advertising. Which of the following is a correct example of a consumer's income effect?
A. A decrease in income leading to a decrease in consumption
B. An increase in income leading to an increase in consumption
C. A decrease in income leading to an increase in consumption
D. An increase in income leading to a decrease in consumption
Question 2
A company has a market share of 30% in a competitive market. If the market demand is 10,000 units, what is the company's sales revenue?
A. ₦3,000,000
B. ₦3,500,000
C. ₦4,000,000
D. ₦4,500,000
Question 3
A consumer's budget constraint is given by the equation 2x + 3y = 100, where x and y are the quantities of two goods consumed. If the consumer's income is 100 units and the prices of the two goods are 2 and 3 units respectively, what is the consumer's optimal bundle?
A. (20, 10)
B. (15, 15)
C. (10, 20)
D. (5, 25)
Question 4
A sole trader's business is considered a separate legal entity from its owner. However, the owner is personally liable for the business's debts. What is the name of this type of business?
A. Sole Trader
B. Partnership
C. Limited Liability Company
D. Cooperative
Question 5
In a consumer protection context, what is the primary purpose of the Consumer Protection Act of 1999?
A. To regulate consumer credit
B. To protect consumers from unfair trade practices
C. To promote consumer education
D. To establish consumer rights
Question 6
A country's balance of payments account shows a trade deficit of ₦1,000,000. If the country's foreign exchange reserves are ₦500,000, what is the minimum amount of foreign exchange the country must borrow to cover the trade deficit?
A. ₦500,000
B. ₦750,000
C. ₦1,000,000
D. ₦1,250,000
Question 7
A firm has a production function given by Q = 3L^0.7K^0.3. If the firm's output is 120 units and the wage rate is ₦60 per hour, what is the minimum amount of capital required to produce this output?
A. ₦1800
B. ₦2200
C. ₦2800
D. ₦3200
Question 8
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost. Which of the following is a correct example of comparative advantage?
A. Nigeria producing oil and importing food
B. Nigeria producing food and importing oil
C. Nigeria producing both oil and food
D. Nigeria producing neither oil nor food
Question 9
A warehouse's stock control system is designed to track the movement of goods from receipt to dispatch. What is the name of this system?
A. First-In-First-Out (FIFO)
B. Last-In-First-Out (LIFO)
C. Just-In-Time (JIT)
D. Economic Order Quantity (EOQ)
Question 10
A firm's cost function is given by C = 2L + 3K, where C is the total cost, L is the labor input, and K is the capital input. If the firm's labor input is 10 units and its capital input is 5 units, what is the total cost?
A. 25
B. 30
C. 35
D. 40
Question 11
A sole trader has a business income of ₦500,000 and business expenses of ₦300,000. What is the sole trader's taxable profit?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 12
A consumer protection agency is investigating a complaint about a company's unfair business practices. The company has a policy of charging customers a 10% handling fee on all transactions. However, the agency has discovered that the company is actually charging an average of 15% handling fee. What is the difference between the company's stated handling fee and the actual handling fee?
A. 5%
B. 10%
C. 15%
D. 20%
Question 13
A company's memorandum of association is a document that outlines the company's
A. objects
B. share capital
C. management structure
D. all of the above
Question 14
A company is considering the purchase of a new warehouse. The warehouse has a purchase price of ₦2,000,000 and an annual maintenance cost of ₦100,000. The company expects to use the warehouse for 3 years. What is the present value of the warehouse using the discount rate of 12%?
A. ₦1,419,419
B. ₦1,619,419
C. ₦1,819,419
D. ₦2,419,419
Question 15
A company's production process involves the conversion of raw materials into finished goods. What is the name of this process?
A. Manufacturing
B. Assembly
C. Packaging
D. Quality Control

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