POST UTME CALEB UNIVERSITY 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's break-even point is the point at which its total revenue equals its total fixed and variable costs. Which of the following is a correct formula for calculating the break-even point?
A. Break-even point = Total Revenue / (Fixed Costs + Variable Costs)
B. Break-even point = (Fixed Costs + Variable Costs) / Total Revenue
C. Break-even point = Total Revenue - (Fixed Costs + Variable Costs)
D. Break-even point = (Fixed Costs - Variable Costs) / Total Revenue
Question 2
A consumer's utility function is given by U(x,y) = 2x + 3y. If the consumer's current income is ₦1000 and the prices of x and y are ₦2 and ₦3, respectively, what is the consumer's optimal bundle?
A. (200, 100)
B. (300, 50)
C. (400, 0)
D. (0, 0)
Question 3
A sole trader has a business income of ₦2,000,000 and a business expense of ₦800,000. If the sole trader has a personal income of ₦1,000,000, what is the sole trader's total income for the year?
A. ₦2,800,000
B. ₦3,000,000
C. ₦2,200,000
D. ₦1,200,000
Question 4
A firm's demand curve is downward-sloping, indicating that as the price of a good decreases, the quantity demanded increases. Which of the following is a correct explanation for this phenomenon?
A. The firm is a price-taker and has no control over the price of the good.
B. The firm is a price-maker and has control over the price of the good.
C. The firm is a monopolist and has a downward-sloping demand curve.
D. The firm is a competitive firm and has a downward-sloping supply curve.
Question 5
A sole trader has an annual turnover of ₦2,000,000. If the company's tax rate is 25%, what is the amount of tax payable?
A. ₦500,000
B. ₦500,000
C. ₦500,000
D. ₦500,000
Question 6
A marketing strategy that involves creating a product that is tailored to the specific needs of a particular market segment is known as?
A. Product differentiation
B. Market segmentation
C. Target marketing
D. Positioning
Question 7
A company is considering two marketing strategies: one that focuses on social media advertising and another that focuses on influencer marketing. If the company has a budget of ₦1,500,000 and the cost of social media advertising is ₦500,000, while the cost of influencer marketing is ₦750,000, which strategy should the company choose if it wants to maximize its return on investment?
A. Social media advertising
B. Influencer marketing
C. Both strategies are equally effective
D. Neither strategy is effective
Question 8
A company has a transportation cost of ₦500,000 and a communication cost of ₦300,000. If the company has a total cost of ₦1,200,000, what is the percentage of the total cost that is attributed to transportation?
A. 20%
B. 25%
C. 30%
D. 35%
Question 9
A company has a warehouse with a capacity of 10,000 units. The current inventory level is 5,000 units. If the company receives a new shipment of 2,000 units, what is the new inventory level?
A. 5000
B. 7000
C. 10000
D. 12000
Question 10
A company is a type of business ownership where a group of people come together to form a business. What is the main disadvantage of being a company?
A. Limited liability
B. Easy to set up
C. Complexity in decision-making
D. Access to capital
Question 11
The concept of opportunity cost is relevant in the context of
A. production decisions
B. consumption decisions
C. investment decisions
D. all of the above
Question 12
A firm's revenue is maximized when the marginal revenue equals the
A. marginal cost
B. marginal product
C. marginal utility
D. marginal propensity to consume
Question 13
A company's sole trader has an annual turnover of ₦5,000,000. If the company's tax rate is 20%, what is the amount of tax payable?
A. ₦1,000,000
B. ₦1,500,000
C. ₦1,000,000
D. ₦1,000,000
Question 14
A firm's demand function is given by Q = 100 - 2P. If the firm's price is 20, what is the level of output?
A. 60
B. 80
C. 100
D. 120
Question 15
In a perfectly competitive market, the supply curve is downward sloping because of the law of increasing
A. marginal opportunity cost
B. marginal utility
C. marginal propensity to consume
D. marginal rate of substitution

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: