POST UTME OAU 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The concept of 'Gresham's Law' in economics states that bad money drives out good money. What is the primary reason for this phenomenon?
A. Inflation
B. Deflation
C. Monetary policy
D. Supply and demand
Question 2
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm wants to increase output by 20% while keeping labor constant, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 3
A company's stock is priced at ₦50 per share. If the number of shares outstanding increases by 15%, what is the new market capitalization?
A. ₦5,750,000
B. ₦5,250,000
C. ₦5,000,000
D. ₦4,750,000
Question 4
In a perfectly competitive market, the law of diminishing marginal utility leads to a decrease in the marginal utility of the last unit consumed. What is the consequence of this decrease on the demand curve?
A. The demand curve shifts to the left.
B. The demand curve shifts to the right.
C. The demand curve remains unchanged.
D. The demand curve becomes steeper.
Question 5
A firm's marketing budget is ₦100000. The firm wants to allocate the budget to advertising and promotion. If the firm allocates 20% of the budget to advertising, what is the amount allocated to promotion?
A. ₦20000
B. ₦40000
C. ₦60000
D. ₦80000
Question 6
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the price of labor is ₦10 per unit, and the price of capital is ₦20 per unit, what is the minimum cost of production?
A. ₦160
B. ₦320
C. ₦640
D. ₦1280
Question 7
A company's marketing strategy involves a 20% increase in advertising expenditure. If the initial advertising expenditure was ₦1,500,000, what is the new expenditure?
A. ₦1,800,000
B. ₦1,600,000
C. ₦1,200,000
D. ₦1,000,000
Question 8
A company's cost function is given by the equation C(x) = 50 + 2x + 0.01x^2. If the company produces 100 units, what is the total cost?
A. 550
B. 600
C. 650
D. 700
Question 9
A consumer's indifference curve is given by U = 2X + 3Y. If the consumer's budget constraint is given by 2X + 3Y = 12, what is the consumer's optimal bundle of goods?
A. (2, 4)
B. (4, 2)
C. (6, 0)
D. (0, 6)
Question 10
A company uses the following budget constraint: 2X + 3Y = 12. The company wants to maximize its profit, which is given by P = 4X + 2Y. Using the method of substitution, find the optimal values of X and Y.
A. ( X = 2, Y = 2 )
B. ( X = 1, Y = 3 )
C. ( X = 3, Y = 1 )
D. ( X = 4, Y = 0 )
Question 11
A company has a warehouse with a capacity of 10,000 units. If the company receives a shipment of 5,000 units, what is the new inventory level?
A. 5,000
B. 10,000
C. 15,000
D. 20,000
Question 12
A company is involved in international trade and has a contract with a foreign supplier. What is the implication of this on the company?
A. The company is not required to comply with local laws and regulations.
B. The company is not required to pay taxes on international transactions.
C. The company is liable to penalties for non-compliance with international trade laws.
D. The company is not required to have a business name.
Question 13
A consumer purchases a product from a retailer but discovers that it is not as described. What is the consumer's right under the Consumer Protection Act?
A. The consumer has the right to a full refund.
B. The consumer has the right to a replacement product.
C. The consumer has the right to compensation for damages.
D. The consumer has the right to sue the retailer for breach of contract.
Question 14
A firm's revenue is given by the equation R(x) = 2x^2 + 5x + 1. If the firm's marginal revenue is 10, what is the value of x?
A. 5
B. 10
C. 15
D. 20
Question 15
A firm exports 80% of its production to foreign countries. If the firm's total production is 10,000 units, how many units are exported?
A. 8,000
B. 9,000
C. 10,000
D. 11,000

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