POST UTME ACHIEVERS UNIVERSITY 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A producer's supply curve is upward-sloping, indicating that as the price of the good increases, the quantity supplied also increases. Which of the following is a correct explanation for this phenomenon?
A. As the price of the good increases, the producer's revenue increases, leading to an increase in the quantity supplied.
B. As the price of the good increases, the producer's costs decrease, leading to an increase in the quantity supplied.
C. As the price of the good increases, the producer's supply curve shifts to the right, leading to an increase in the quantity supplied.
D. As the price of the good increases, the producer's supply curve shifts to the left, leading to a decrease in the quantity supplied.
Question 2
A company's foreign trade strategy involves exporting goods to countries with a comparative advantage in production. This is an example of
A. export-led growth strategy
B. import substitution strategy
C. infant industry protection strategy
D. free trade strategy
Question 3
A sole trader's business is characterized by the following features: unlimited liability, unlimited capacity, and the owner's personal assets are not protected. Which of the following is NOT a characteristic of a sole trader's business?
A. Limited liability
B. Unlimited capacity
C. The owner's personal assets are protected
D. Unlimited liability
Question 4
A bank's reserve requirement is the minimum percentage of deposits that the bank must hold in reserve. If a bank has a reserve requirement of 10% and a deposit of ₦100,000, how much must the bank hold in reserve?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 5
A foreign trade agreement between two countries involves the exchange of goods worth 100,000. If the exchange rate is 1 USD = 360 Naira, what is the equivalent value of the goods in Naira?
A. ₦36,000,000
B. ₦36,000,000
C. ₦36,000,000
D. ₦36,000,000
Question 6
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, what is the minimum cost of production?
A. ₦4000
B. ₦8000
C. ₦12000
D. ₦16000
Question 7
A company has a warehouse with a capacity to store 10,000 units of inventory. The company has received an order for 8,000 units. What is the maximum number of pallets that can be used to fulfill the order?
A. 5 pallets
B. 6 pallets
C. 7 pallets
D. 8 pallets
Question 8
A company's articles of association may provide for the appointment of a managing director. What is the primary responsibility of a managing director?
A. To manage the company's day-to-day operations
B. To make strategic decisions on behalf of the company
C. To represent the company in legal matters
D. To oversee the company's financial transactions
Question 9
The concept of 'Just-in-Time' (JIT) inventory system is most closely associated with which of the following inventory control techniques?
A. Economic Order Quantity (EOQ)
B. Just-in-Time (JIT)
C. Materials Requirements Planning (MRP)
D. Vendor-Managed Inventory (VMI)
Question 10
A consumer protection law is a law that protects consumers from unfair or deceptive business practices. Which of the following is a characteristic of a consumer protection law?
A. It protects businesses from consumer lawsuits
B. It requires consumers to disclose their personal information
C. It prohibits unfair or deceptive business practices
D. It requires consumers to pay for goods and services before receiving them
Question 11
In a perfectly competitive market, the supply curve is downward sloping because
A. Firms are willing to supply more at a lower price
B. Firms are willing to supply less at a higher price
C. Firms are willing to supply more at a higher price
D. Firms are willing to supply less at a lower price
Question 12
A company's marketing mix involves the 4 Ps: product, price, promotion, and
A. place
B. people
C. process
D. physical distribution
Question 13
A company's supply chain involves the transportation of goods from a supplier to a warehouse. Which of the following transportation modes is most likely to be used for this purpose?
A. Air freight
B. Land freight
C. Sea freight
D. Pipeline transport
Question 14
In a perfectly competitive market, the supply curve is upward-sloping because
A. Firms are willing to supply more of a good as its price increases.
B. Firms are willing to supply less of a good as its price increases.
C. Firms are willing to supply the same quantity of a good regardless of its price.
D. Firms are willing to supply more of a good as its price decreases.
Question 15
A company's memorandum of association is a document that outlines the company's
A. Objects and powers
B. Share capital and dividend policy
C. Directors' remuneration and benefits
D. Articles of association and memorandum of association

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