POST UTME AFE BABALOLA UNIVERSITY 2019 Commerce | Objective

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Question 1
In the context of consumer protection, the Consumer Protection Act of 1999 provides for the establishment of
A. National Consumer Protection Agency
B. State Consumer Protection Agency
C. Federal Consumer Protection Agency
D. Local Consumer Protection Agency
Question 2
A production manager is responsible for ensuring that goods are produced efficiently and effectively. Which of the following is a correct statement regarding the production process?
A. The production process involves the transformation of raw materials into finished goods.
B. The production process involves the assembly of components into finished goods.
C. The production process involves the manufacture of goods using a combination of human labor and machine-based automation.
D. The production process involves the outsourcing of production to a third-party supplier.
Question 3
A company's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor and K is capital. If the company increases labor by 25% and capital by 20%, what is the percentage change in output?
A. 10%
B. 12%
C. 15%
D. 18%
Question 4
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 wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth.
B. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 150 units of cloth.
C. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 50 units of cloth.
D. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 200 units of cloth.
Question 5
A bank's primary function is to act as a financial intermediary between savers and borrowers. What is the name of this function?
A. Lending
B. Depositing
C. Investing
D. Intermediation
Question 6
In a consumer protection case, a court may award damages to a consumer for a breach of contract if the consumer can prove that the breach was caused by the supplier's negligence. Which of the following is a correct statement regarding the burden of proof in such a case?
A. The consumer must prove that the supplier was negligent.
B. The supplier must prove that they were not negligent.
C. The consumer must prove that the breach was caused by the supplier's negligence.
D. The supplier must prove that the breach was not caused by their negligence.
Question 7
A company's profit function is given by √ = R - C, where √ is profit, R is revenue and C is cost. If the company increases revenue by 15% and cost by 10%, what is the percentage change in profit?
A. 5%
B. 10%
C. 12%
D. 15%
Question 8
The production function is a fundamental concept in the theory of the firm, and it is used to describe the
A. relationship between inputs and outputs
B. relationship between prices and quantities
C. relationship between costs and revenues
D. relationship between profits and losses
Question 9
A country's foreign trade involves the exchange of goods and services with other countries. What is the name of this type of trade?
A. Import
B. Export
C. Foreign Trade
D. International Trade
Question 10
A consumer's protection is ensured through various laws and regulations. What is the name of this type of protection?
A. Consumer Protection
B. Product Liability
C. Warranty
D. Guarantee
Question 11
A firm's revenue function is given by R = 100P - 2P^2, where R is revenue and P is price. If the firm increases price by 10%, what is the percentage change in revenue?
A. -5%
B. -10%
C. -15%
D. -20%
Question 12
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm increases price by 10%, what is the percentage change in quantity demanded?
A. -5%
B. -10%
C. -15%
D. -20%
Question 13
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 wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth.
B. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 150 units of cloth.
C. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 50 units of cloth.
D. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 100 units of wheat and 100 units of cloth.
Question 14
The concept of production and specialization is closely related to the idea of comparative advantage. Explain how a country can benefit from specializing in the production of a particular good, even if it is not the most efficient producer of that good.
A. By producing a good that it is relatively good at producing, a country can increase its overall productivity and efficiency.
B. By specializing in the production of a good, a country can reduce its costs and increase its competitiveness in the global market.
C. By producing a good that it is relatively good at producing, a country can increase its exports and earn more foreign exchange.
D. By specializing in the production of a good, a country can reduce its dependence on imports and increase its self-sufficiency.
Question 15
The concept of risk management in insurance is closely related to the idea of
A. hedging
B. speculation
C. diversification
D. reinsurance

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