POST UTME ABU 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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 good X and 50 units of good Y, while Country B produces 50 units of good X and 100 units of good Y.
B. Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 150 units of good Y.
C. Country A produces 50 units of good X and 100 units of good Y, while Country B produces 100 units of good X and 50 units of good Y.
D. Country A produces 50 units of good X and 150 units of good Y, while Country B produces 100 units of good X and 50 units of good Y.
Question 2
A marketing strategy involves the use of social media to promote a product. The company spends ₦500,000 on social media advertising and receives ₦1,000,000 in sales. What is the return on investment (ROI) in percentage?
A. 100%
B. 100.50%
C. 100.51%
D. 100.01%
Question 3
A company is considering expanding its operations to a new market. The company has conducted market research and identified a potential opportunity, but it is unsure about the feasibility of the expansion. What is the primary consideration for the company in this situation?
A. The potential return on investment
B. The level of competition in the new market
C. The company's ability to adapt to the new market
D. The potential impact on the company's reputation
Question 4
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company wants to increase its production by 20% while keeping labor input constant at 100 units, what percentage increase in capital input is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 5
In a perfectly competitive market, what is the relationship between the marginal revenue product (MRP) of a firm and its marginal factor cost (MFC)?
A. MRP = MFC
B. MRP > MFC
C. MRP < MFC
D. MRP = -MFC
Question 6
A sole trader, Mr. A, has a business that generates an average monthly income of ₦500,000. His monthly expenses are ₦200,000. What is his monthly profit?
A. ₦300,000
B. ₦300,000.50
C. ₦300,000.51
D. ₦300,000.01
Question 7
A company's share capital is divided into 10,000 shares of ₦10 each. If the company issues 8,000 shares, what is the total amount received from the issue of shares?
A. ₦80,000,000
B. ₦80,000,000.50
C. ₦80,000,000.51
D. ₦80,000,000.01
Question 8
A firm is considering two marketing strategies: Strategy A, which involves a 10% increase in advertising expenditure, and Strategy B, which involves a 5% decrease in advertising expenditure. If the firm's current advertising expenditure is ₦1,000,000, which strategy will result in a higher profit?
A. Strategy A
B. Strategy B
C. Both strategies will result in the same profit
D. Neither strategy will result in a higher profit
Question 9
A sole trader operates a small business, selling handmade crafts online. The business has a single owner, who is responsible for all aspects of the business, including production, marketing, and finance. What is the primary advantage of this business structure?
A. Increased flexibility and autonomy
B. Reduced costs due to simplified management
C. Improved decision-making due to single ownership
D. Enhanced accountability due to multiple owners
Question 10
The concept of insurance and risk management is closely related to the idea of protecting against financial losses. Which of the following is a correct example of a type of insurance?
A. Life insurance that pays a death benefit to the beneficiary.
B. Health insurance that covers medical expenses and hospital stays.
C. Disability insurance that provides income replacement in case of injury or illness.
D. Liability insurance that protects against lawsuits and financial losses.
Question 11
A sole trader is a type of business ownership where one person owns and operates the business. What are the advantages of this type of business ownership?
A. Easy to set up, flexible, and low risk
B. Easy to set up, flexible, and high risk
C. Difficult to set up, inflexible, and low risk
D. Difficult to set up, inflexible, and high risk
Question 12
A company's financial statements for the year ended December 31, 2023, showed a net profit of ₦250 million. The company's tax rate is 30%. Calculate the amount of tax payable.
A. ₦75,000,000
B. ₦75,000,001
C. ₦75,000,000.50
D. ₦75,000,000.51
Question 13
A company is considering investing in a new project with an initial cost of ₦1,500,000 and expected annual profits of ₦750,000. What is the payback period of the project?
A. 2 years
B. 3 years
C. 4 years
D. 5 years
Question 14
A foreign trade agreement between two countries involves the exchange of goods worth ₦100 million for goods worth 200,000. If the exchange rate is ₦500 = 1, what is the value of the goods received in exchange?
A. 200,000
B. 200,000.50
C. 200,000.51
D. 200,000.01
Question 15
The concept of banking and financial institutions is closely related to the idea of money and credit. Which of the following is a correct example of a financial institution?
A. A commercial bank that provides checking and savings accounts.
B. A central bank that regulates the money supply and sets interest rates.
C. A non-bank financial institution that provides loans and credit to individuals and businesses.
D. A government agency that provides financial assistance to small businesses and entrepreneurs.

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