POST UTME AAUA 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer purchases a product with a list price of ₦5,000. The consumer is offered a 10% discount and a 5% cash discount. What is the final price paid by the consumer?
A. ₦4,250
B. ₦4,500
C. ₦4,750
D. ₦5,000
Question 2
The ______ of a firm's production function is the rate at which output changes when one input is changed, while holding all other inputs constant.
A. marginal product
B. marginal revenue product
C. marginal cost
D. marginal utility
Question 3
A company is considering investing in a new market. The company's management team has identified the following factors as potential risks: political instability, economic downturn, and cultural differences. Which of the following risk management strategies would be most appropriate for this company?
A. Diversification
B. Hedging
C. Risk avoidance
D. Risk transfer
Question 4
A firm's revenue is maximized when the marginal revenue equals the ______.
A. marginal cost
B. marginal revenue
C. average revenue
D. average cost
Question 5
A company is experiencing difficulties in collecting payments from its customers. Which of the following insurance products would be most suitable for this company?
A. Trade credit insurance
B. Export credit insurance
C. Product liability insurance
D. Professional indemnity insurance
Question 6
In a perfectly competitive market, the supply curve is represented by the equation ( Q = 100 + 2P ). If the price elasticity of demand is 0.5, what is the change in quantity demanded when the price increases by ₦10?
A. 20 units
B. 40 units
C. 60 units
D. 80 units
Question 7
A business has a production cost of ₦2,000,000 and a selling price of ₦3,500,000. What is the business's profit margin?
A. 50%
B. 60%
C. 40%
D. 30%
Question 8
A company's marketing budget is ₦1,200,000. If the company spends 30% on advertising, 20% on promotions, and 50% on public relations, what is the amount spent on public relations?
A. ₦600,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000
Question 9
The concept of 'moral hazard' in insurance refers to the situation where
A. A policyholder takes unnecessary risks because they are insured
B. An insurer takes unnecessary risks because they are insured
C. A policyholder takes necessary risks because they are insured
D. An insurer takes necessary risks because they are insured
Question 10
In a sole trade business, what is the primary advantage of adopting a sole proprietorship structure?
A. Limited liability
B. Easy to establish
C. Flexibility in decision-making
D. Tax benefits
Question 11
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will ______.
A. increase
B. decrease
C. remain constant
D. shift to the left
Question 12
A firm has a production function given by Q = 2L + 3K, where Q is the output, L is the labor input, and K is the capital input. If the firm wants to produce 100 units of output, how many units of labor and capital are required?
A. L = 20, K = 30
B. L = 30, K = 20
C. L = 40, K = 10
D. L = 10, K = 40
Question 13
A company has a production function ( Q = 2L^2 + 5K ), where ( L ) is labor and ( K ) is capital. If the company increases labor by 20% and capital by 15%, what is the percentage change in output?
A. 10%
B. 15%
C. 20%
D. 25%
Question 14
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 compared to other countries. 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 150 units of cloth.
C. Country A produces 50 units of wheat and 100 units of cloth, while Country B produces 100 units of wheat and 50 units of cloth.
D. Country A produces 50 units of wheat and 100 units of cloth, while Country B produces 150 units of wheat and 50 units of cloth.
Question 15
The diagram below shows a typical example of a
A. Photosynthesis process
B. Respiration process
C. Transpiration process
D. Osmosis process

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