POST UTME ACHIEVERS UNIVERSITY 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer has a utility function given by U(x,y) = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦2 and ₦3 respectively, what is the consumer's optimal bundle of x and y?
A. x = 200, y = 300
B. x = 300, y = 200
C. x = 400, y = 100
D. x = 100, y = 400
Question 2
A firm is considering a new product launch. The product has a probability of success of 0.8 and a probability of failure of 0.2. If the firm invests ₦500,000 in the product, what is the expected return?
A. ₦400,000
B. ₦500,000
C. ₦600,000
D. ₦800,000
Question 3
A sole trader's business is organized as a partnership. What is the primary advantage of this organizational structure?
A. Limited liability
B. Unlimited liability
C. Shared profits and losses
D. Increased management control
Question 4
A firm's foreign trade is most likely to be influenced by which of the following?
A. Tariffs
B. Quotas
C. Exchange rates
D. All of the above
Question 5
A company's break-even point is the point at which its total revenue equals its total cost. What is the formula for calculating the break-even point?
A. Total Revenue = Total Cost
B. Total Revenue = Total Fixed Costs + Total Variable Costs
C. Total Revenue = Total Fixed Costs + Total Variable Costs + Break-Even Point
D. Total Revenue = Total Fixed Costs - Total Variable Costs
Question 6
A company's financial statements are prepared in accordance with the Generally Accepted Accounting Principles (GAAP). Which of the following is a characteristic of GAAP?
A. GAAP is based on the cash basis of accounting
B. GAAP is based on the accrual basis of accounting
C. GAAP is based on the historical cost basis of accounting
D. GAAP is based on the current cost basis of accounting
Question 7
A company is a type of business organization that is owned and operated by shareholders. What are the characteristics of a company?
A. Limited liability, perpetual existence, and transferable ownership
B. Unlimited liability, short-term existence, and non-transferable ownership
C. High level of control, low level of responsibility, and limited liability
D. High level of responsibility, low level of control, and unlimited liability
Question 8
In a perfectly competitive market, what is the relationship between the marginal revenue and marginal cost curves?
A. Marginal revenue is always greater than marginal cost.
B. Marginal revenue is always less than marginal cost.
C. Marginal revenue equals marginal cost.
D. Marginal revenue and marginal cost are unrelated.
Question 9
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing costs. What is the primary reason for this upward-sloping supply curve?
A. The law of increasing costs is due to the fixed costs of production.
B. The law of increasing costs is due to the variable costs of production.
C. The law of increasing costs is due to the increasing marginal cost of production.
D. The law of increasing costs is due to the decreasing marginal revenue of production.
Question 10
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing
A. Diminishing Marginal Opportunity Cost
B. Increasing Marginal Opportunity Cost
C. Diminishing Marginal Utility
D. Increasing Marginal Utility
Question 11
A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. Which of the following is a requirement for registration?
A. Obtain a Tax Identification Number (TIN)
B. Register with the Corporate Affairs Commission (CAC)
C. Obtain a Business Name Certificate
D. Register with the Federal Inland Revenue Service (FIRS)
Question 12
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. What is the opportunity cost of producing a good?
A. The value of the good in terms of other goods that could be produced
B. The cost of producing the good in terms of labor and capital
C. The price of the good in the market
D. The quantity of the good produced
Question 13
The concept of consumer protection is an important aspect of business law. What are the responsibilities of consumers under the Consumer Protection Act?
A. To read and understand the terms and conditions of a contract, to report any defects or issues with a product, and to seek compensation for any losses or damages
B. To ignore the terms and conditions of a contract, to conceal any defects or issues with a product, and to refuse to seek compensation for any losses or damages
C. To negotiate the price of a product, to choose a supplier, and to receive a guarantee
D. To receive a warranty, to return a product, and to complain to a regulatory body
Question 14
A company's break-even point is the point at which its total revenue equals its total
A. Fixed Costs
B. Variable Costs
C. Total Costs
D. Selling Price
Question 15
A firm specializes in the production of textiles. The firm uses a production function that is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the number of labor hours, and K is the capital invested. If the firm increases the number of labor hours from 100 to 120 and the capital invested from 100 to 120, what is the new quantity produced?
A. 10
B. 12
C. 15
D. 18

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