POST UTME AFE BABALOLA UNIVERSITY 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a production function 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 new quantity produced?
A. 121
B. 122
C. 123
D. 124
Question 2
A company uses the weighted average cost method to value its inventory. The company has two types of inventory: Type A and Type B. The cost of Type A is ₦100 per unit, and the cost of Type B is ₦120 per unit. The company has 100 units of Type A and 50 units of Type B. What is the total cost of the inventory?
A. ₦12000
B. ₦13000
C. ₦14000
D. ₦15000
Question 3
In a perfectly competitive market, the demand curve for a firm's product is its marginal revenue curve. True or False?
A. True
B. False
C. It depends on the market structure
D. It depends on the firm's production level
Question 4
A bank offers a 5-year fixed deposit account with an interest rate of 8% per annum compounded annually. If the initial deposit is ₦100,000, what is the future value of the investment after 5 years?
A. ₦128000
B. ₦132000
C. ₦136000
D. ₦140000
Question 5
The Consumer Protection Act of 1999 provides for the protection of consumers from unfair trade practices. Which of the following is a key provision of the Act?
A. The Act provides for the establishment of a Consumer Protection Council.
B. The Act provides for the protection of consumers from unfair trade practices.
C. The Act provides for the establishment of a Consumer Protection Agency.
D. The Act provides for the protection of consumers from defective products.
Question 6
A company is considering launching a new product in a new market. The company's marketing team has identified several potential product life cycles, including the introduction, growth, maturity, and decline stages. Which product life cycle stage is typically characterized by increasing market share and revenue?
A. Introduction stage
B. Growth stage
C. Maturity stage
D. Decline stage
Question 7
A firm's supply function is given by S(p) = 100 - 2p. Find the inverse supply function.
A. p = 50 - 0.5S^{-1}(q)
B. p = 50 + 0.5S^{-1}(q)
C. p = 50 - S^{-1}(q)
D. p = 50 + S^{-1}(q)
Question 8
A company's production function is characterized by increasing returns to scale. What is the primary implication of this characteristic?
A. The company's output will increase at a decreasing rate as inputs increase
B. The company's output will increase at an increasing rate as inputs increase
C. The company's output will remain constant as inputs increase
D. The company's output will decrease as inputs increase
Question 9
A company's articles of association outline its rules and regulations. What is the primary purpose of these articles?
A. To define the company's objectives and goals
B. To outline the rights and responsibilities of shareholders
C. To specify the procedures for appointing directors and auditors
D. To establish the company's capital structure and shareholding
Question 10
A company uses the FIFO method to value its inventory. The company has two types of inventory: Type A and Type B. The cost of Type A is ₦100 per unit, and the cost of Type B is ₦120 per unit. The company has 100 units of Type A and 50 units of Type B. What is the total cost of the inventory?
A. ₦12000
B. ₦13000
C. ₦14000
D. ₦15000
Question 11
A firm's cost function is given by C(x) = 50 + 10x + 2x^2. Find the elasticity of supply.
A. ES = -2x
B. ES = 2x
C. ES = -x
D. ES = x
Question 12
A company has a warehouse with a capacity of 10,000 units. The current inventory level is 8,000 units. If the company receives a shipment of 2,000 units, what is the new inventory level?
A. 8000
B. 10000
C. 12000
D. 14000
Question 13
A consumer has a budget constraint of 1000 and a preference for two goods, A and B, with prices of 10 and 20 respectively. If the consumer's indifference curve is tangent to the budget line at a point where the consumer is consuming 50 units of good A and 25 units of good B, what is the consumer's marginal rate of substitution (MRS) between good A and good B?
A. 1:1
B. 1:2
C. 2:1
D. 3:1
Question 14
A company has a warehouse with a capacity of 10,000 units. The company receives an order for 5,000 units. The warehouse is currently 70% full. What is the minimum number of units that can be stored in the warehouse after fulfilling the order?
A. 3500
B. 4000
C. 4500
D. 5000
Question 15
A life insurance policy provides a lump sum payment to the policyholder's beneficiaries in the event of their death. What is the primary purpose of this payment?
A. To cover funeral expenses and other immediate costs
B. To provide a source of income for the policyholder's dependents
C. To pay off outstanding debts and loans
D. To fund the policyholder's retirement or other long-term goals

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