POST UTME ELIZADE UNIVERSITY 2017 Commerce | Objective

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Question 1
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company increases its labor input by 20% and capital input by 15%, by what percentage will the quantity produced increase?
A. 10%
Correct B. 12%
C. 15%
D. 18%

Correct Answer: B

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Question 2
A firm's cost function is given by C(x) = 2x^2 + 100x + 5000. If the firm produces 50 units, what is the total cost?
A. 12500
B. 15000
Correct C. 17500
D. 20000

Correct Answer: C

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Question 3
A company's revenue function is given by R(x) = 100x - 2x^2. If the company produces 20 units, what is the marginal revenue?
A. 100
Correct B. 120
C. 140
D. 160

Correct Answer: B

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Question 4
A firm's demand function is given by Q = 100 - 2P. If the price is increased by 10%, by what percentage will the quantity demanded decrease?
A. 5%
Correct B. 10%
C. 15%
D. 20%

Correct Answer: B

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Question 5
A company's production function is given by Q = 100L^0.5K^0.5. If the company increases its labor input by 20% and capital input by 15%, by what percentage will the quantity produced increase?
A. 10%
Correct B. 12%
C. 15%
D. 18%

Correct Answer: B

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Question 6
What is the primary function of the International Chamber of Commerce (ICC) in the context of international trade?
A. To regulate international trade agreements
B. To provide a platform for international trade negotiations
Correct C. To promote fair and transparent international trade practices
D. To facilitate the exchange of goods and services between countries

Correct Answer: C

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Question 7
A company is considering the use of a new transportation mode to reduce costs. Which of the following transportation modes is likely to be the most cost-effective?
A. Air freight
B. Rail transport
C. Truck transport
Correct D. Ship transport

Correct Answer: D

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Question 8
A consumer purchases a product online and receives a defective item. The consumer files a complaint with the company, but the company refuses to provide a refund. What is the consumer's best course of action?
A. File a lawsuit against the company
B. Contact the company's customer service department
Correct C. Seek mediation from a consumer protection agency
D. Post a negative review on social media

Correct Answer: C

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Question 9
A company is considering the use of a new business structure. Which of the following business structures is likely to provide the most liability protection for the company's owners?
A. Sole proprietorship
B. Partnership
Correct C. Limited liability company (LLC)
D. Corporation

Correct Answer: C

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Question 10
A company is considering the use of a new marketing strategy. Which of the following marketing strategies is likely to be the most effective in reaching a large audience?
Correct A. Social media marketing
B. Email marketing
C. Content marketing
D. Search engine optimization (SEO)

Correct Answer: A

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Question 11
In a perfectly competitive market, the supply curve is a
Correct A. Horizontal line
B. Vertical line
C. U-shaped curve
D. Inverted U-shaped curve

Correct Answer: A

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Question 12
A firm's production function is given by Q = 2L^(1/2)K^(1/2). If the firm's output is 16 units when labor is 4 units and capital is 4 units, what is the marginal product of labor?
A. 2
B. 4
Correct C. 8
D. 16

Correct Answer: C

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Question 13
A consumer has a budget 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 of their budget, what is the consumer's indifference curve?
A. 45° line
B. Isoquant
Correct C. Indifference curve
D. Budget constraint

Correct Answer: C

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Question 14
A firm's cost function is given by C = 2L + 3K. If the firm's output is 16 units when labor is 4 units and capital is 4 units, what is the firm's total cost?
A. 16
Correct B. 32
C. 64
D. 128

Correct Answer: B

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Question 15
A consumer has a utility function given by U = 2x + 3y. If the consumer's income is ₦1000 and the prices of the goods are ₦200 and ₦300 respectively, what is the consumer's optimal bundle?
A. (2, 1)
B. (4, 2)
Correct C. (6, 3)
D. (8, 4)

Correct Answer: C

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Question 16
The Central Bank of Nigeria (CBN) uses the following monetary policy tools to control inflation: Open Market Operations (OMO), Reserve Requirements, and the Discount Rate. Which of the following is NOT a monetary policy tool used by the CBN?
Correct A. Fiscal Policy
B. Monetary Policy
C. Supply-Side Policy
D. Demand-Side Policy

Correct Answer: A

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Question 17
A company's marketing mix consists of the 4 Ps: Product, Price, Place, and Promotion. Which of the following is NOT one of the 4 Ps?
A. Product
B. Price
C. Place
Correct D. Profit

Correct Answer: D

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Question 18
A sole trader's business is not registered with the Corporate Affairs Commission (CAC). Which of the following is a characteristic of a sole trader's business?
A. The business is registered with the CAC
B. The business is owned by one person
Correct C. The business is not registered with the CAC
D. The business is owned by two or more people

Correct Answer: C

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Question 19
A company's financial statements include the Balance Sheet, Income Statement, and Cash Flow Statement. Which of the following is NOT one of the financial statements?
A. Balance Sheet
B. Income Statement
C. Cash Flow Statement
Correct D. Statement of Changes in Equity

Correct Answer: D

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Question 20
A marketing strategy involves the use of social media to promote a product. Which of the following is a benefit of using social media in marketing?
A. Increased brand awareness
Correct B. Improved customer engagement
C. Enhanced product quality
D. Reduced marketing costs

Correct Answer: B

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Question 21
A company's marketing strategy involves a mix of advertising and sales promotions. If the company allocates 30% of its budget to advertising and 40% to sales promotions, what percentage of the budget is left for other marketing activities?
Correct A. 10%
B. 20%
C. 30%
D. 40%

Correct Answer: A

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Question 22
A life insurance policy has a premium of ₦500,000 per annum. If the policyholder dies after 5 years, the insurance company pays a lump sum of ₦10 million. What is the present value of the policy if the discount rate is 8% per annum?
A. ₦2,500,000
B. ₦3,000,000
Correct C. ₦3,500,000
D. ₦4,000,000

Correct Answer: C

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Question 23
A bank's cash management system involves the use of a cash management software that automates the process of reconciling cash transactions. If the software is able to reconcile 90% of the transactions accurately, what is the probability that a randomly selected transaction will be reconciled accurately?
A. 0.1
B. 0.2
C. 0.3
Correct D. 0.9

Correct Answer: D

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Question 24
A company's inventory management system involves the use of a first-in-first-out (FIFO) inventory valuation method. If the company has 100 units of a product with a cost of ₦500 per unit, and 50 units of the same product with a cost of ₦600 per unit, what is the total value of the inventory?
A. ₦50,000
B. ₦60,000
Correct C. ₦70,000
D. ₦80,000

Correct Answer: C

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Question 25
A logistics company uses a transportation management system that involves the use of a transportation mode selection algorithm. If the algorithm selects the transportation mode based on the distance between the origin and destination, what is the probability that the algorithm will select the most cost-effective mode?
A. 0.2
B. 0.3
C. 0.4
Correct D. 0.5

Correct Answer: D

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