POST UTME AFE BABALOLA UNIVERSITY 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer protection agency has received complaints about a company's unfair business practices. The agency has the power to investigate the company and impose penalties if necessary. What is the primary purpose of this agency?
A. To promote fair competition
B. To protect consumers from unfair business practices
C. To regulate the company's business operations
D. To impose penalties on the company
Question 2
The following diagram shows a demand curve for a product. If the price elasticity of demand is 0.5, what is the percentage change in quantity demanded if the price increases by 10%?
A. 5%
B. 10%
C. 20%
D. 30%
Question 3
A company's communication strategy involves the use of various channels, including social media and email marketing. Which of the following is the most appropriate way to measure the effectiveness of these channels?
A. Tracking website traffic and engagement metrics
B. Conducting customer surveys and feedback analysis
C. Analyzing sales data and revenue growth
D. Monitoring social media sentiment and buzz
Question 4
A firm has a production function of Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm has 100 units of labor and 200 units of capital, what is the output?
A. 100
B. 200
C. 300
D. 400
Question 5
The Central Bank of Nigeria (CBN) uses the following monetary policy tools to control inflation: Open Market Operations (OMO), Reserve Requirements, and Moral Suasion. Which of the following is NOT a monetary policy tool used by the CBN?
A. Fiscal Policy
B. Monetary Policy
C. Supply-Side Policy
D. Demand-Side Policy
Question 6
A company's cost function is given by C = 100 + 2L + 3K, where C is the total cost, L is the labor input, and K is the capital input. If the company increases its labor input from 50 to 60 units and its capital input from 50 to 60 units, what is the percentage change in the total cost?
A. 10%
B. 20%
C. 30%
D. 40%
Question 7
A company's revenue function is given by R = 100Q - 2Q^2, where R is the total revenue and Q is the quantity sold. If the company increases its quantity sold from 50 to 60 units, what is the percentage change in the total revenue?
A. 10%
B. 20%
C. 30%
D. 40%
Question 8
A company is considering entering a new market in a foreign country. What are the key factors that the company should consider when deciding whether to enter the market?
A. The company should consider the size of the market, the level of competition, and the potential for growth.
B. The company should consider the cultural and political environment of the foreign country, as well as the level of trade barriers.
C. The company should consider the cost of entering the market, including the cost of setting up a new facility and hiring local staff.
D. The company should consider the potential for cultural and language barriers, as well as the risk of political instability.
Question 9
A firm is considering two investment projects, A and B. Project A has a net present value (NPV) of ₦1,500 and a cost of ₦1,200, while project B has an NPV of ₦1,800 and a cost of ₦1,500. Which project should the firm choose?
A. Project A
B. Project B
C. Both projects are equally attractive
D. Neither project is attractive
Question 10
A company is considering the introduction of a new product. The product has a high demand, but the production costs are high. The company is considering the following options: (i) increase the price of the product, (ii) reduce the production costs, (iii) increase the advertising budget, and (iv) reduce the quality of the product. Which of the following options is the most appropriate?
A. (i) increase the price of the product
B. (ii) reduce the production costs
C. (iii) increase the advertising budget
D. (iv) reduce the quality of the product
Question 11
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 increases its labor input from 100 to 121 units and its capital input from 100 to 121 units, what is the percentage change in the quantity produced?
A. 10%
B. 20%
C. 30%
D. 40%
Question 12
A company is considering a new marketing strategy that involves social media advertising. If the company's target audience is 18-35 years old, and the company's budget for the marketing campaign is ₦1.5 million, what is the estimated return on investment (ROI) if the campaign generates 10,000 new followers?
A. 200%
B. 250%
C. 300%
D. 350%
Question 13
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current input levels are L = 16 and K = 9, what is the marginal product of labor?
A. 2.5
B. 3
C. 4
D. 5
Question 14
A consumer purchases a product for ₦1,000 and pays a sales tax of 10%. The consumer also pays a service charge of 5%. What is the total amount paid by the consumer?
A. ₦1,050
B. ₦1,100
C. ₦1,150
D. ₦1,200
Question 15
The concept of specialization in production is closely related to the idea of comparative advantage. Explain how specialization leads to increased productivity and efficiency in a market economy.
A. Specialization leads to increased productivity and efficiency because it allows firms to focus on producing a specific good or service, leading to economies of scale.
B. Specialization leads to increased productivity and efficiency because it allows firms to take advantage of their comparative advantage, leading to a more efficient allocation of resources.
C. Specialization leads to decreased productivity and efficiency because it limits the range of goods and services that firms can produce.
D. Specialization has no impact on productivity and efficiency in a market economy.

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