Practice post utme eksu commerce 2017 Past Questions

Question 1

A company's sole trader has a fixed asset of ₦500,000 and a current asset of ₦300,000. If the company's total assets are ₦1,200,000, what is the value of its fixed liabilities?

Correct A. ₦200,000

B. ₦300,000

C. ₦400,000

D. ₦500,000

Correct Answer: A

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Question 2

A consumer protection agency has been established to protect consumers from unfair business practices. Which of the following is a key function of this agency?

Correct A. To investigate consumer complaints

B. To regulate business practices

C. To educate consumers about their rights

D. To provide legal assistance to consumers

Correct Answer: A

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Question 3

A company's financial statements show a net income of ₦1,500,000 and a total equity of ₦2,500,000. What is the company's return on equity (ROE)?

A. 75%

Correct B. 80%

C. 85%

D. 90%

Correct Answer: B

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Question 4

A sole trader has a fixed asset of ₦200,000 and a current asset of ₦100,000. If the company's total assets are ₦600,000, what is the value of its current liabilities?

A. ₦200,000

Correct B. ₦300,000

C. ₦400,000

D. ₦500,000

Correct Answer: B

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Question 5

A company's financial statements show a net income of ₦2,000,000 and a total equity of ₦4,000,000. What is the company's return on equity (ROE)?

A. 50%

B. 60%

Correct C. 70%

D. 80%

Correct Answer: C

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Question 6

What is the primary difference between a cartel and a monopoly in the context of home and foreign trade?

Correct A. A cartel is a group of firms that collude to restrict output and raise prices, while a monopoly is a single firm that produces a good or service with no close substitutes.

B. A cartel is a single firm that produces a good or service with no close substitutes, while a monopoly is a group of firms that collude to restrict output and raise prices.

C. A cartel is a group of firms that collude to restrict output and raise prices, while a monopoly is a firm that produces a good or service with a high degree of market power.

D. A cartel is a firm that produces a good or service with a high degree of market power, while a monopoly is a group of firms that collude to restrict output and raise prices.

Correct Answer: A

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Question 7

What is the main purpose of the Consumer Protection Act in Nigeria?

A. To regulate the activities of businesses and protect consumers from unfair trade practices.

Correct B. To provide a framework for the resolution of consumer disputes and protect consumers from unfair trade practices.

C. To promote fair competition among businesses and protect consumers from unfair trade practices.

D. To regulate the activities of businesses and promote fair competition among them.

Correct Answer: B

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Question 8

What is the primary function of a liability insurance policy in the context of risk management?

Correct A. To provide financial protection against losses arising from business operations.

B. To provide financial protection against losses arising from accidents or injuries.

C. To provide financial protection against losses arising from natural disasters or catastrophes.

D. To provide financial protection against losses arising from business interruptions.

Correct Answer: A

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Question 9

What is the main difference between a commercial bank and a merchant bank in the context of banking and financial institutions?

Correct A. A commercial bank provides a wide range of financial services to individuals and businesses, while a merchant bank specializes in providing financial services to businesses.

B. A commercial bank specializes in providing financial services to businesses, while a merchant bank provides a wide range of financial services to individuals and businesses.

C. A commercial bank provides financial services to individuals and businesses, while a merchant bank provides financial services to businesses and governments.

D. A commercial bank provides financial services to businesses and governments, while a merchant bank provides financial services to individuals and businesses.

Correct Answer: A

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Question 10

What is the primary purpose of the Central Bank of Nigeria in the context of monetary policy?

Correct A. To regulate the money supply and maintain price stability.

B. To regulate the activities of commercial banks and maintain financial stability.

C. To regulate the exchange rate and maintain a stable currency.

D. To regulate the activities of financial institutions and maintain financial stability.

Correct Answer: A

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Question 11

In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will

A. increase

Correct B. decrease

C. remain constant

D. move in the opposite direction

Correct Answer: B

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Question 12

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the price of labor is ₦50 per unit, and the price of capital is ₦100 per unit, how much will the firm spend on labor?

Correct A. ₦400

B. ₦800

C. ₦1200

D. ₦1600

Correct Answer: A

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Question 13

A consumer has a budget constraint of ₦1000 and a preference for two goods, A and B. The prices of the goods are ₦200 and ₦300 respectively. If the consumer spends all their budget on good A, how much will they have left over to spend on good B?

A. ₦200

B. ₦300

C. ₦400

Correct D. ₦500

Correct Answer: D

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Question 14

A firm is considering two different production processes for producing a good. Process A costs ₦100 per unit and produces 2 units of output per hour. Process B costs ₦150 per unit and produces 3 units of output per hour. If the firm wants to produce 12 units of output per hour, which process should it use?

A. Process A

Correct B. Process B

C. Both processes are equally efficient

D. Neither process is efficient

Correct Answer: B

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Question 15

A consumer has a utility function given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the prices of the goods are ₦200 and ₦300 respectively, and the consumer spends all their budget on good A, how much will they have left over to spend on good B?

A. ₦200

B. ₦300

C. ₦400

Correct D. ₦500

Correct Answer: D

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Question 16

In a perfectly competitive market, the supply curve is downward sloping because

Correct A. Firms are willing to supply more at a lower price

B. Firms are willing to supply less at a higher price

C. Firms are willing to supply more at a higher price

D. Firms are willing to supply less at a lower price

Correct Answer: A

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Question 17

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current output is 16 units and the number of workers is 4, how many machines does the firm need to produce 25 units of output?

A. 4

B. 6

Correct C. 8

D. 10

Correct Answer: C

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Question 18

A firm's revenue function is given by R = 100p - 2p^2, where p is the price per unit. If the firm's current price is 20 units, what is the firm's marginal revenue?

A. 80

B. 90

Correct C. 100

D. 110

Correct Answer: C

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Question 19

A firm's cost function is given by C = 2L + 3K, where L is the number of workers and K is the number of machines. If the firm's current output is 16 units and the number of workers is 4, how many machines does the firm need to produce 25 units of output?

A. 4

B. 6

Correct C. 8

D. 10

Correct Answer: C

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Question 20

A firm's profit function is given by P = R - C, where R is the revenue function and C is the cost function. If the firm's current price is 20 units and the number of workers is 4, what is the firm's profit?

A. 80

B. 90

Correct C. 100

D. 110

Correct Answer: C

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Question 21

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current output is 16 units and the number of workers is 4, how many machines does the firm need to produce 25 units of output?

A. 4

B. 6

Correct C. 8

D. 10

Correct Answer: C

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Question 22

A firm's revenue function is given by R = 100p - 2p^2, where p is the price per unit. If the firm's current price is 20 units, what is the firm's marginal revenue?

A. 80

B. 90

Correct C. 100

D. 110

Correct Answer: C

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Question 23

A firm's cost function is given by C = 2L + 3K, where L is the number of workers and K is the number of machines. If the firm's current output is 16 units and the number of workers is 4, how many machines does the firm need to produce 25 units of output?

A. 4

B. 6

Correct C. 8

D. 10

Correct Answer: C

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Question 24

A firm's profit function is given by P = R - C, where R is the revenue function and C is the cost function. If the firm's current price is 20 units and the number of workers is 4, what is the firm's profit?

A. 80

B. 90

Correct C. 100

D. 110

Correct Answer: C

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Question 25

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current output is 16 units and the number of workers is 4, how many machines does the firm need to produce 25 units of output?

A. 4

B. 6

C. 8

D. 10

Correct Answer: VIEW ANSWER

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