POST UTME CRAWFORD UNIVERSITY 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has two factories, A and B, producing the same product. Factory A has a production function Q_A = 2L_A^(1/2)K_A^(1/2), while factory B has a production function Q_B = 2L_B^(1/2)K_B^(1/2). If factory A produces 100 units of output with 10 units of labor and 10 units of capital, and factory B produces 100 units of output with 5 units of labor and 20 units of capital, which factory has a higher marginal product of labor?
A. Factory A
B. Factory B
C. Both factories have the same marginal product of labor
D. Neither factory has a higher marginal product of labor
Question 2
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm wants to increase output by 20% while keeping labor constant, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 3
A company's warehouse is used to store finished goods before they are shipped to customers. This is an example of which of the following?
A. Raw Materials Storage
B. Finished Goods Storage
C. Work-in-Progress Storage
D. Inventory Control
Question 4
A company uses the just-in-time (JIT) inventory system. What is the primary benefit of this system?
A. Reduced inventory costs
B. Improved quality control
C. Increased flexibility in production
D. Better forecasting
Question 5
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing opportunity costs. However, in a perfectly competitive market, the law of increasing opportunity costs is not the primary reason for the upward-sloping supply curve. What is the primary reason?
A. The law of diminishing marginal returns
B. The law of increasing opportunity costs
C. The law of supply and demand
D. The law of market equilibrium
Question 6
A company's warehouse is storing goods worth ₦5,000,000. The goods are insured against theft and damage. If the insurance premium is 2% of the total value of the goods, and the company pays an additional ₦50,000 as a deductible, what is the total cost of insurance for the goods?
A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦180,000
Question 7
A firm is considering exporting its goods to a foreign country. The firm expects to earn a profit of ₦1 million per year from the export, but it also expects to incur a cost of ₦500,000 per year in transportation and marketing. What is the net profit earned by the firm from the export?
A. ₦500,000
B. ₦750,000
C. ₦1 million
D. ₦1.5 million
Question 8
A firm's revenue function is given by R = 100x - 2x^2. If the firm wants to maximize its revenue, what is the optimal price?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 9
In a sole trader business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Easy to set up
C. Flexibility in decision-making
D. No tax benefits
Question 10
The concept of specialization in production is closely related to the idea of comparative advantage. Explain how a country can benefit from specializing in the production of a particular good, even if it is not the most efficient producer of that good.
A. By reducing production costs and increasing efficiency
B. By increasing the demand for the good and reducing supply
C. By exploiting its comparative advantage and trading with other countries
D. By imposing tariffs and quotas on imports
Question 11
A company's marketing strategy involves creating a new product line to target a specific demographic. The product line is designed to appeal to the demographic's values and lifestyle. What type of marketing strategy is this?
A. Segmentation
B. Targeting
C. Positioning
D. Product differentiation
Question 12
A firm has a production function Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm wants to increase output by 20% while keeping labor constant, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 13
A company's marketing mix includes product, price, promotion, and place. What is the primary goal of this marketing mix?
A. To increase sales
B. To reduce costs
C. To improve customer satisfaction
D. To increase market share
Question 14
A bank's assets include cash, securities, and loans. What is the primary function of these assets?
A. To generate revenue
B. To manage risk
C. To provide liquidity
D. To invest in new projects
Question 15
The concept of 'caveat emptor' in consumer protection law is best described as:
A. A warning to consumers to be cautious when making purchases
B. A principle that holds sellers liable for defects in goods
C. A doctrine that requires consumers to inspect goods before buying
D. A rule that prohibits sellers from making false claims about products

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