POST UTME ACHIEVERS UNIVERSITY 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the equilibrium price and quantity of a product in this market?
A. ₦100, 100 units
B. ₦120, 80 units
C. ₦150, 60 units
D. ₦200, 40 units
Question 2
A firm has a warehouse with a capacity of 1000 units. The firm receives a shipment of 500 units and already has 300 units in stock. If the firm wants to maintain a safety stock of 20% of the warehouse capacity, what is the maximum number of units that the firm can receive without exceeding the warehouse capacity?
A. 200 units
B. 300 units
C. 400 units
D. 500 units
Question 3
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is the output, L is labor, and H is capital. If the firm wants to increase its output by 20% while keeping labor constant, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 4
A consumer purchases a product with a price of ₦10,000 and a 10% discount. The consumer pays ₦9,000. What is the amount of the discount?
A. ₦1,000
B. ₦1,500
C. ₦2,000
D. ₦2,500
Question 5
A consumer purchases a product with a price of ₦10,000 and a 10% discount. The consumer pays ₦9,000. What is the amount of the discount?
A. ₦1,000
B. ₦1,500
C. ₦2,000
D. ₦2,500
Question 6
A company's marketing strategy involves a 50% increase in advertising expenditure. If the current advertising expenditure is ₦500,000, what is the new advertising expenditure?
A. ₦750,000
B. ₦750,000
C. ₦750,000
D. ₦750,000
Question 7
A company's insurance policy has a deductible of ₦50,000. If the company suffers a loss of ₦200,000, what is the amount the insurance company will pay?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 8
A firm has a production process that involves two stages: Stage 1 and Stage 2. The production function for Stage 1 is given by Q1 = 2L1^0.5H1^0.5, where Q1 is the output of Stage 1, L1 is labor in Stage 1, and H1 is capital in Stage 1. The production function for Stage 2 is given by Q2 = 2L2^0.5H2^0.5, where Q2 is the output of Stage 2, L2 is labor in Stage 2, and H2 is capital in Stage 2. If the firm wants to increase the output of Stage 1 by 20% while keeping labor constant, what percentage increase in capital is required for Stage 1?
A. 10%
B. 20%
C. 30%
D. 40%
Question 9
A consumer protection law requires that all goods sold in a particular market be labeled with their country of origin. What is the primary purpose of this law?
A. To protect consumers from counterfeit goods
B. To promote fair trade practices
C. To increase transparency in labeling
D. To reduce the risk of product liability
Question 10
A company's financial statements show a net income of ₦1.2 million, but the auditor notes that the company has a contingent liability of ₦500,000. What is the correct accounting treatment for this liability?
A. Recognize the liability as a current liability and provide a footnote disclosure.
B. Recognize the liability as a non-current liability and provide a footnote disclosure.
C. Do not recognize the liability as it is not probable or estimable.
D. Recognize the liability as a current liability and provide a separate financial statement.
Question 11
A company is considering launching a new product in a foreign market. Which of the following market research methods would be most appropriate for this situation?
A. Conducting a survey of potential customers
B. Analyzing secondary data from existing market research
C. Conducting focus groups with potential customers
D. Conducting a pilot study to test the product
Question 12
A firm is considering investing in a new project. The project has a high level of uncertainty and a high potential return. What is the primary risk associated with this project?
A. Market risk
B. Credit risk
C. Liquidity risk
D. Operational risk
Question 13
A foreign trade agreement between two countries involves the exchange of goods and services between the two countries. What is the name of this type of trade?
A. Import
B. Export
C. Foreign Trade
D. International Trade
Question 14
A firm is considering two production processes. Process A requires an initial investment of ₦100,000 and generates a profit of ₦20,000 per unit produced. Process B requires an initial investment of ₦150,000 and generates a profit of ₦30,000 per unit produced. If the firm produces 1,000 units per year, which process is more profitable?
A. Process A
B. Process B
C. Both processes are equal
D. Cannot be determined
Question 15
A bank's cash reserve ratio is 20%. If the bank has a total deposit of ₦10,000,000, what is the amount of cash the bank must hold in reserve?
A. ₦2,000,000
B. ₦2,500,000
C. ₦3,000,000
D. ₦3,500,000

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