POST UTME COAL CITY UNIVERSITY 2022 Commerce | Objective

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Question 1
In a market with perfect competition, the demand curve is downward sloping, and the supply curve is upward sloping. If the price of a commodity is ₦100, and the quantity demanded is 100 units, what is the price elasticity of demand?
A. 0.5
Correct B. 1.0
C. 1.5
D. 2.0

Correct Answer: B

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Question 2
A company has a sole trader business structure. If the company's profit is ₦500,000, and the owner's capital is ₦200,000, what is the return on investment (ROI)?
A. 150%
Correct B. 200%
C. 250%
D. 300%

Correct Answer: B

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Question 3
A firm is considering two marketing strategies: product differentiation and market segmentation. If the firm chooses product differentiation, what is the expected outcome?
Correct A. Increased market share
B. Decreased market share
C. No change in market share
D. Increased competition

Correct Answer: A

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Question 4
A company is considering exporting its products to a foreign market. If the company chooses to use a freight forwarder, what is the expected outcome?
Correct A. Reduced transportation costs
B. Increased transportation costs
C. No change in transportation costs
D. Increased risk of damage

Correct Answer: A

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Question 5
A firm is considering two types of warehouses: a public warehouse and a private warehouse. If the firm chooses a public warehouse, what is the expected outcome?
Correct A. Increased security
B. Decreased security
C. No change in security
D. Increased costs

Correct Answer: A

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Question 6
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
Correct 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

Correct Answer: B

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Question 7
A firm produces 100 units of a product and sells 80 units. The remaining 20 units are stored in a warehouse. What is the ratio of the units sold to the units stored?
A. 4:1
B. 3:1
Correct C. 2:1
D. 1:1

Correct Answer: C

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Question 8
A company uses a just-in-time inventory system. What is the primary advantage of this system?
Correct A. Reduced inventory costs
B. Improved product quality
C. Increased production efficiency
D. Enhanced customer satisfaction

Correct Answer: A

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Question 9
A firm uses a marketing mix strategy to promote its product. Which of the following is a key element of the marketing mix?
A. Product
B. Price
Correct C. Promotion
D. Place

Correct Answer: C

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Question 10
A company uses a supply chain management system to manage its inventory. What is the primary benefit of this system?
Correct A. Improved inventory management
B. Reduced transportation costs
C. Enhanced customer satisfaction
D. Increased production efficiency

Correct Answer: A

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Question 11
In a warehouse with a capacity of 10,000 units, the inventory level is currently at 8,000 units. The warehouse receives a shipment of 2,000 units on the first day of the month and sells 1,500 units on the same day. If the warehouse operates on a first-in, first-out (FIFO) inventory system, what is the total number of units in the warehouse at the end of the first day?
A. 6,000
Correct B. 7,500
C. 8,500
D. 9,000

Correct Answer: B

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Question 12
A consumer purchases a product for ₦10,000 and pays a 5% sales tax. If the consumer returns the product and receives a full refund, but the retailer deducts a 10% restocking fee, what is the total amount the consumer receives as a refund?
A. ₦9,500
Correct B. ₦9,000
C. ₦8,500
D. ₦8,000

Correct Answer: B

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Question 13
A company purchases an insurance policy that covers losses up to ₦5 million. If the company incurs a loss of ₦3 million, what is the amount the insurance company will pay?
Correct A. ₦3 million
B. ₦5 million
C. ₦2.5 million
D. ₦1.5 million

Correct Answer: A

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Question 14
A truck driver is transporting goods from Lagos to Abuja. The driver takes a 2-hour break every 4 hours of driving. If the total driving time is 12 hours, how many breaks will the driver take?
A. 2 breaks
Correct B. 3 breaks
C. 4 breaks
D. 5 breaks

Correct Answer: B

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Question 15
A company's profit is calculated as the difference between revenue and cost. If the company's revenue is ₦10 million and its cost is ₦8 million, what is the company's profit?
A. ₦1 million
Correct B. ₦2 million
C. ₦3 million
D. ₦4 million

Correct Answer: B

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Question 16
A firm specializes in producing two goods, X and Y. The production function for good X is given by ( Q_X = 2L^2 + 3K ), where L is labor and K is capital. The production function for good Y is given by ( Q_Y = 4L^2 - 2K ). If the firm has 100 units of labor and 50 units of capital, and it wants to maximize its total output, what is the optimal level of labor to use?
A. 50
B. 75
Correct C. 100
D. 125

Correct Answer: C

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Question 17
A company has two production plants, A and B. Plant A produces 100 units of a good per hour, while plant B produces 80 units per hour. The total cost of production for plant A is ( C_A = 200 + 2Q_A ), where Q_A is the quantity produced, and the total cost of production for plant B is ( C_B = 150 + 1.5Q_B ). If the company wants to produce 500 units of the good and minimize its total cost, what is the optimal production level for plant A?
A. 200
Correct B. 250
C. 300
D. 350

Correct Answer: B

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Question 18
A firm is considering two marketing strategies, A and B. Strategy A involves a one-time advertising expenditure of ₦100,000, while strategy B involves a monthly advertising expenditure of ₦10,000. If the firm expects to sell 100 units of a good per month for the next 6 months, and the price of the good is ₦500 per unit, what is the total revenue generated by strategy B?
A. ₦600,000
B. ₦700,000
Correct C. ₦800,000
D. ₦900,000

Correct Answer: C

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Question 19
A company is considering exporting its product to a foreign market. The company's production costs are as follows: labor costs = ₦50 per unit, raw materials costs = ₦30 per unit, and other costs = ₦20 per unit. If the company expects to sell the product for ₦150 per unit in the foreign market, what is the company's profit per unit?
A. ₦50
B. ₦60
Correct C. ₦70
D. ₦80

Correct Answer: C

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Question 20
A bank is considering lending money to a customer at an interest rate of 10% per annum. If the customer borrows ₦100,000 for 2 years, what is the total interest paid by the customer?
A. ₦20,000
B. ₦21,000
Correct C. ₦22,000
D. ₦23,000

Correct Answer: C

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Question 21
The concept of 'Gross Domestic Product' (GDP) is used to measure the total value of all final goods and services produced within a country's borders. However, GDP has its limitations. Which of the following is NOT a limitation of GDP?
A. GDP does not account for income inequality
B. GDP does not account for the value of unpaid household work
C. GDP does not account for the value of environmental degradation
Correct D. GDP does not account for the value of national defense

Correct Answer: D

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Question 22
A company is considering two different marketing strategies to promote its new product. Strategy A involves a high level of advertising and promotion, while Strategy B involves a low level of advertising and promotion. Which of the following is a potential advantage of Strategy A?
Correct A. Increased brand awareness
B. Increased sales
C. Decreased production costs
D. Improved customer satisfaction

Correct Answer: A

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Question 23
A firm is considering exporting its products to a foreign market. Which of the following is a potential advantage of exporting?
A. Increased market share
Correct B. Increased revenue
C. Reduced competition
D. Improved brand reputation

Correct Answer: B

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Question 24
A bank is considering offering a new type of loan product to its customers. Which of the following is a potential risk associated with offering this new loan product?
A. Increased competition
Correct B. Increased default risk
C. Increased regulatory risk
D. Increased market risk

Correct Answer: B

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Question 25
A company is considering investing in a new project. Which of the following is a potential benefit of investing in this project?
Correct A. Increased revenue
B. Increased market share
C. Improved brand reputation
D. Reduced costs

Correct Answer: A

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