POST UTME BELLS UNIVERSITY 2021 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 effect of an increase in the price of a complementary good on the supply curve?
A. The supply curve shifts to the left.
B. The supply curve shifts to the right.
C. The supply curve remains unchanged.
D. The supply curve becomes vertical.
Question 2
A company is considering investing in a new project. The company has estimated that the initial investment will be ₦1,500,000 and the annual cash inflows will be ₦500,000. If the company requires a minimum return on investment of 15%, what is the present value of the project?
A. ₦1,200,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 3
A consumer's budget constraint is given by P1Q1 + P2Q2 = 100, where P1 and P2 are the prices of two goods, and Q1 and Q2 are the quantities consumed. If the price of good 1 increases by 20% and the price of good 2 decreases by 15%, what is the new budget constraint?
A. P1Q1 + P2Q2 = 120
B. P1Q1 + P2Q2 = 110
C. P1Q1 + P2Q2 = 105
D. P1Q1 + P2Q2 = 100
Question 4
A company is a business owned and operated by shareholders. What is the primary advantage of being a company?
A. Limited liability
B. Unlimited liability
C. Easy to set up
D. Flexibility in decision-making
Question 5
A company's marketing strategy involves a mix of advertising and public relations. Which of the following is a key benefit of using advertising in a marketing mix?
A. Building brand awareness
B. Creating a sense of urgency
C. Establishing credibility
D. Generating leads
Question 6
A firm is considering two production technologies: one that requires a high initial investment but results in lower production costs over time, and another that requires a low initial investment but results in higher production costs over time. If the firm expects to produce 10,000 units per year for the next 5 years, and the initial investment for the high-cost technology is ₦5,000,000, while the initial investment for the low-cost technology is ₦2,000,000, which technology should the firm choose if it expects to sell each unit for ₦500?
A. High-cost technology
B. Low-cost technology
C. It depends on the firm's risk tolerance
D. More information is needed to make a decision
Question 7
The Consumer Protection Act of 1999 provides for the establishment of the National Consumer Protection Agency. What is the primary function of this agency?
A. To investigate consumer complaints and provide redress
B. To regulate consumer transactions and enforce consumer rights
C. To educate consumers on their rights and responsibilities
D. To provide counseling services to consumers
Question 8
A company's assets are valued at ₦5 billion, with liabilities of ₦2 billion. What is the company's equity?
A. ₦3 billion
B. ₦5 billion
C. ₦7 billion
D. ₦9 billion
Question 9
A firm's cost function is given by TC = 2L + 3K, where TC is the total cost, L is labor, and K is capital. If the firm's labor and capital are increased by 10% and 5% respectively, what is the percentage change in the total cost?
A. 5%
B. 10%
C. 15%
D. 20%
Question 10
A firm is considering two different production processes to manufacture a product. Process A requires an initial investment of ₦1,000,000 and has a fixed cost of ₦500,000 per unit. Process B requires an initial investment of ₦500,000 and has a fixed cost of ₦200,000 per unit. If the firm produces 1,000 units of the product, which process will result in lower total costs?
A. Process A
B. Process B
C. Both processes will result in the same total costs.
D. Neither process will result in lower total costs.
Question 11
A sole trader is a business owned and operated by one individual. What is the primary advantage of being a sole trader?
A. Limited liability
B. Unlimited liability
C. Easy to set up
D. Flexibility in decision-making
Question 12
A company purchases an insurance policy that covers against fire damage. What type of insurance is this?
A. Life insurance
B. Property insurance
C. Liability insurance
D. Casualty insurance
Question 13
A firm's production function is given by Q = 2L^2 + 3K^2, where Q is the quantity produced, L is labor, and K is capital. If the firm's labor and capital are increased by 20% and 15% respectively, what is the percentage change in the quantity produced?
A. 10%
B. 15%
C. 20%
D. 25%
Question 14
A warehouse has a storage capacity of 10,000 units. The warehouse is currently 70% full, with 7,000 units stored. If 1,500 units are added to the warehouse, what is the new percentage of capacity?
A. 60%
B. 65%
C. 70%
D. 75%
Question 15
A bank offers a loan of ₦500,000 at an interest rate of 12% per annum. What is the annual interest on the loan?
A. ₦60,000
B. ₦50,000
C. ₦40,000
D. ₦30,000

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