POST UTME BABCOCK UNIVERSITY 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^(1/2)K^(1/2). If the firm's current input levels are L = 16 and K = 25, then the marginal product of capital is
A. 1/4
B. 1/2
C. 1
D. 2
Question 2
A company is considering two different marketing strategies: a push strategy and a pull strategy. Which of the following is a key characteristic of a pull strategy?
A. Targeting a wide audience
B. Creating a sense of urgency
C. Building brand awareness
D. Encouraging customer participation
Question 3
A company's memorandum of association is a document that outlines which of the following?
A. The company's objectives
B. The company's structure
C. The company's management
D. The company's financial affairs
Question 4
A firm's production function is given by Q = 2L^(1/2)K^(1/2). If the firm's current input levels are L = 16 and K = 25, then the marginal product of labor is
A. 1/4
B. 1/2
C. 1
D. 2
Question 5
A sole trader has a business income of ₦200,000 and a business expense of ₦100,000. What is the profit of the business?
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 6
A firm's cost function is given by C(Q) = 2Q^2 + 3Q. If the firm's current output level is Q = 4, then the firm's total cost is
A. 16
B. 20
C. 24
D. 28
Question 7
The diagram below shows the structure of a company. Which of the following is a characteristic of a company?
A. Limited liability
B. Separate legal entity
C. Perpetual succession
D. Free transfer of shares
Question 8
A warehouse is storing a large quantity of perishable goods. Which of the following is a key consideration for the warehouse manager?
A. Minimizing storage costs
B. Maximizing storage capacity
C. Maintaining a consistent temperature
D. Reducing labor costs
Question 9
A sole trader's business is not registered under which of the following?
A. Partnership
B. Company
C. Sole Proprietorship
D. Limited Liability Partnership
Question 10
The concept of specialization in production is closely related to the idea of division of labor. Which of the following is a key benefit of specialization?
A. Increased productivity
B. Improved quality control
C. Reduced labor costs
D. Enhanced innovation
Question 11
A consumer's budget constraint is given by 2x + 3y = 12. If the consumer's indifference curve is given by u(x,y) = 2x + y, then the consumer's optimal consumption bundle is
A. (2,4)
B. (4,2)
C. (6,0)
D. (0,6)
Question 12
In a sole trade business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Tax benefits
C. Easy setup and management
D. Flexibility in decision-making
Question 13
A consumer protection law is designed to protect consumers from which of the following?
A. Unfair business practices
B. False advertising
C. Product liability
D. All of the above
Question 14
In a perfectly competitive market, the supply curve is perfectly elastic because the firm can freely adjust its output in response to changes in the market price. However, this is not the case in a monopolistically competitive market, where the firm faces a downward-sloping demand curve. What is the primary reason for this difference in supply curve elasticity?
A. The presence of advertising and product differentiation
B. The ability of firms to collude and set prices
C. The presence of barriers to entry
D. The ability of firms to produce at a constant marginal cost
Question 15
A consumer's budget constraint is given by 2x + 3y = 12. If the consumer's indifference curve is given by u(x,y) = 2x + y, then the consumer's optimal consumption bundle is
A. (2,4)
B. (4,2)
C. (6,0)
D. (0,6)

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