POST UTME AAUA 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer purchases a product with a 2-year warranty. The product fails after 18 months. What is the consumer's likely course of action?
A. Return the product for a full refund
B. Seek compensation for the cost of repairs
C. Contact the manufacturer for a replacement
D. Take the product to a repair shop
Question 2
A bank offers a 5-year fixed deposit account with an interest rate of 12% per annum compounded annually. If the initial deposit is ₦100,000, what is the total amount at the end of the 5-year period?
A. ₦163,922
B. ₦164,922
C. ₦165,922
D. ₦166,922
Question 3
A company is considering launching a new product in a market with a high level of competition. The company has a market share of 20% and is considering increasing its market share to 30%. Using the Porter's Five Forces framework, what is the likely impact on the company's profitability?
A. Profitability will increase
B. Profitability will decrease
C. Profitability will remain the same
D. Insufficient information to determine the impact
Question 4
A firm's production function is given by Q = 2L^0.5 + 3K^0.5. If the firm's current inputs are L = 16 and K = 9, then the marginal product of labor is
A. 2.5
B. 3.5
C. 4.5
D. 5.5
Question 5
A company's articles of association may provide for a minimum number of shares that must be held by a director. What is the purpose of this provision?
A. To ensure that directors have a vested interest in the company
B. To prevent directors from holding too many shares
C. To ensure that directors have a minimum level of financial commitment
D. To prevent directors from selling their shares
Question 6
A firm's cost function is given by C = 2L + 3K. If the firm's current inputs are L = 10 and K = 5, then the total cost is
A. ₦50
B. ₦60
C. ₦70
D. ₦80
Question 7
A company is considering launching a new product. The company's marketing manager estimates that the demand for the product will follow the demand function P = 100 - 2Q, where P is the price of the product and Q is the quantity demanded. If the company wants to maximize its profit, what is the optimal price and quantity to charge?
A. P = 50, Q = 25
B. P = 75, Q = 25
C. P = 100, Q = 50
D. P = 125, Q = 75
Question 8
A firm has a budget constraint of ₦100000, and wants to maximize its profit. If the price of good X is ₦200, and the price of good Y is ₦300, and the firm produces 20 units of good X and 10 units of good Y, what is the maximum profit?
A. ₦20000
B. ₦25000
C. ₦30000
D. ₦35000
Question 9
A firm is considering expanding its production capacity. The firm's current production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the amount of labor used, and K is the amount of capital used. If the firm wants to increase its production by 20%, what is the new production function?
A. Q = 2.4L^0.5K^0.5
B. Q = 2.2L^0.5K^0.5
C. Q = 2.6L^0.5K^0.5
D. Q = 2.8L^0.5K^0.5
Question 10
In a perfectly competitive market, the law of diminishing marginal utility implies that the demand curve for a firm's product is likely to be
A. inelastic
B. elastic
C. unit elastic
D. perfectly inelastic
Question 11
A company has a policy of paying its employees a 10% bonus on their annual salary. If an employee's annual salary is ₦200,000, what is the bonus amount?
A. ₦20,000
B. ₦22,000
C. ₦24,000
D. ₦26,000
Question 12
In a warehouse with a storage capacity of 10,000 units, the inventory level is currently at 8,000 units. If the warehouse receives a shipment of 2,000 units and 500 units are sold, what is the new inventory level?
A. 6,500
B. 7,000
C. 8,500
D. 9,000
Question 13
A company is considering two different marketing strategies: Strategy A and Strategy B. Strategy A involves a one-time investment of ₦500,000 and a monthly advertising expenditure of ₦50,000. Strategy B involves a one-time investment of ₦750,000 and a monthly advertising expenditure of ₦30,000. Using the break-even analysis, find the number of months it will take for the company to break even with each strategy.
A. 12 months
B. 18 months
C. 24 months
D. 30 months
Question 14
A company's production process involves the use of a patented technology. What is the term for the exclusive right to use this technology?
A. Copyright
B. Patent
C. Trademark
D. Trade Secret
Question 15
A firm's production function is given by Q = 3L^0.5K^0.5. If the firm wants to produce 9 units of output, and the price of labor is ₦150 per unit, and the price of capital is ₦250 per unit, what is the minimum cost of production?
A. ₦4500
B. ₦6000
C. ₦7500
D. ₦9000

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