POST UTME RHEMA UNIVERSITY 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's marketing strategy involves a 10% discount on all products. If a product originally costs ₦1,500, how much will a customer pay after the discount?
A. ₦1,350
B. ₦1,400
C. ₦1,450
D. ₦1,500
Question 2
A bank's interest rate is 12% per annum. If a customer deposits ₦10,000 for 2 years, how much interest will the customer earn?
A. ₦2,400
B. ₦2,500
C. ₦2,600
D. ₦2,700
Question 3
A firm's total cost is the sum of its fixed costs and its variable costs. Which of the following is a characteristic of a firm's total cost?
A. Increases as output increases
B. Decreases as output increases
C. Remains constant as output increases
D. Increases as output decreases
Question 4
A consumer protection agency receives a complaint about a company's misleading advertisement. The agency finds that the company has made false claims about its product. What action should the agency take?
A. Issue a warning to the company
B. Fine the company ₦100,000
C. Ban the company from advertising
D. Sue the company for damages
Question 5
A company's insurance policy covers losses due to fire, theft, and natural disasters. However, the policy excludes losses due to war and nuclear accidents. If the company's assets are valued at ₦500 million and the insurance premium is 5% of the total value, what is the total cost of the insurance premium?
A. ₦25,000,000
B. ₦25,500,000
C. ₦26,000,000
D. ₦26,500,000
Question 6
The concept of comparative advantage in international trade was first introduced by which of the following economists?
A. David Ricardo
B. Adam Smith
C. Thomas Malthus
D. John Maynard Keynes
Question 7
A sole trader's business is not separate from their personal life. What is the main advantage of this?
A. Easy to set up and run
B. Less paperwork and bureaucracy
C. No need to pay taxes on business profits
D. No risk of business failure affecting personal life
Question 8
A firm's revenue function is given by R = 2Q + 3P, where R is the revenue, Q is the output, and P is the price. If the firm produces 10 units of output and the price is 5, what is the revenue?
A. 20
B. 30
C. 40
D. 50
Question 9
A sole trader is considering the incorporation of his business. The sole trader has estimated that the incorporation costs will be ₦5 million and the benefits of incorporation will be ₦10 million. What is the net benefit of incorporation?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 10
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. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth.
B. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth, but Country A has a lower opportunity cost of producing cloth.
C. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth, but Country B has a lower opportunity cost of producing wheat.
D. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth, but both countries have the same opportunity cost of producing both goods.
Question 11
A firm's marketing strategy involves using social media platforms to reach its target audience. However, the firm's social media manager has noticed that the engagement rates on Instagram are higher than those on Facebook. What is the most likely reason for this difference?
A. Instagram's algorithm favors visual content
B. Facebook's algorithm favors text-based content
C. Instagram's audience is more active during the day
D. Facebook's audience is more active during the evening
Question 12
A firm's cost function is given by C = 2L + 3K, where C is the cost, L is the labor, and K is the capital. If the firm uses 10 units of labor and 5 units of capital, what is the cost?
A. 20
B. 30
C. 40
D. 50
Question 13
A firm's break-even point is the point at which its total revenue equals its total fixed costs. Which of the following is a characteristic of a firm's break-even point?
A. Total revenue equals total fixed costs
B. Total revenue equals total variable costs
C. Total revenue equals total costs
D. Total revenue is greater than total costs
Question 14
A firm's marketing strategy involves creating a brand image that is perceived as luxurious and exclusive. This is an example of which of the following marketing strategies?
A. Product Differentiation
B. Segmentation
C. Positioning
D. Branding
Question 15
A firm is considering the production of two different products: A and B. The production costs of the two products are as follows: Product A: ₦100 per unit, Product B: ₦150 per unit. Which of the following is a correct statement about the production of these two products?
A. The firm should produce both products A and B.
B. The firm should produce only product A.
C. The firm should produce only product B.
D. The firm should not produce either product A or product B.

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