Exam Body

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POST UTME ELIZADE UNIVERSITY 2021 Commerce | Objective

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Question 1

In a perfectly competitive market, the demand curve for a firm's product is its

Correct A. marginal revenue curve

B. marginal cost curve

C. average revenue curve

D. average cost curve

Correct Answer: A

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Question 2

A company's production function is given by Q = 100L^0.5K^0.25. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and the company wants to produce 100 units of output, how much will it cost?

A. ₦10,000

Correct B. ₦20,000

C. ₦30,000

D. ₦40,000

Correct Answer: B

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Question 3

A firm's cost function is given by C = 100 + 2L + 3K. If the firm hires 5 units of labor and 10 units of capital, what is its total cost?

A. ₦250

B. ₦350

Correct C. ₦450

D. ₦550

Correct Answer: C

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Question 4

A company's revenue function is given by R = 100P^2. If the price of the product is ₦50, what is the company's revenue?

A. ₦2500

Correct B. ₦5000

C. ₦7500

D. ₦10,000

Correct Answer: B

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Question 5

A firm's profit function is given by π = 100Q - 20L - 30K. If the firm produces 10 units of output, hires 5 units of labor, and uses 10 units of capital, what is its profit?

A. ₦500

Correct B. ₦1000

C. ₦1500

D. ₦2000

Correct Answer: B

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Question 6

The Central Bank of Nigeria (CBN) uses the monetary policy instrument of Open Market Operations (OMO) to influence the money supply in the economy. Which of the following is a correct statement about OMO?

A. OMO involves the sale of government securities to commercial banks.

Correct B. OMO involves the purchase of government securities from commercial banks.

C. OMO involves the sale of government securities to the general public.

D. OMO involves the purchase of government securities from the general public.

Correct Answer: B

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Question 7

A company's marketing mix is a combination of the 4 Ps: Product, Price, Place, and Promotion. Which of the following is NOT a correct example of a product?

A. A new smartphone model.

Correct B. A new restaurant menu.

C. A new car model.

D. A new software application.

Correct Answer: B

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Question 8

The following diagram shows a circuit with a battery, a resistor, and a switch. What is the current flowing through the circuit when the switch is closed?

Correct A. 5A

B. 10A

C. 15A

D. 20A

Correct Answer: A

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Question 9

A company's financial statement shows a net income of ₦1,000,000 and a total equity of ₦5,000,000. What is the return on equity (ROE) of the company?

A. 20%

B. 25%

Correct C. 30%

D. 35%

Correct Answer: C

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Question 10

A company's marketing strategy involves a product launch, a trade show, and a social media campaign. Which of the following is a correct example of a trade show?

A. A product launch event.

Correct B. A trade show at a conference center.

C. A social media campaign.

D. A product demonstration.

Correct Answer: B

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Question 11

A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is the quantity produced, L is labor, and K is capital. If the firm's labor and capital are increased by 20% and 15% respectively, what is the percentage change in the quantity produced?

A. 10%

B. 12%

Correct C. 15%

D. 18%

Correct Answer: C

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Question 12

A company has a warehouse with a capacity of 1000 units. The warehouse is currently 75% full. If 150 units are added to the warehouse, what is the new percentage of capacity?

A. 60%

Correct B. 65%

C. 70%

D. 75%

Correct Answer: B

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Question 13

A firm has a production cost function given by C = 2Q + 100, where C is the cost and Q is the quantity produced. If the firm produces 50 units, what is the total cost?

A. 200

Correct B. 250

C. 300

D. 350

Correct Answer: B

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Question 14

A company has a risk management strategy that involves diversification. If the company has 3 assets with expected returns of 8%, 10%, and 12% respectively, and the correlation between the assets is 0.5, what is the expected return on the portfolio?

A. 9.5%

Correct B. 10%

C. 10.5%

D. 11%

Correct Answer: B

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Question 15

A firm has a production function given by Q = 2L^(1/2)K^(1/2), where Q is the quantity produced, L is labor, and K is capital. If the firm's labor and capital are increased by 20% and 15% respectively, what is the new production function?

A. Q = 2.4L^(1/2)K^(1/2)

B. Q = 2.5L^(1/2)K^(1/2)

Correct C. Q = 2.6L^(1/2)K^(1/2)

D. Q = 2.7L^(1/2)K^(1/2)

Correct Answer: C

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Question 16

The concept of 'Consumer Sovereignty' in marketing is closely related to which of the following?

A. Market Structure

Correct B. Consumer Behavior

C. Marketing Mix

D. Product Life Cycle

Correct Answer: B

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Question 17

A company's 'Brand Equity' can be measured using the following formula:

Correct A. BE = (S + A + N + R + E)

B. BE = (S + A + N + R)

C. BE = (S + A + N + E)

D. BE = (S + A + R + E)

Correct Answer: A

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Question 18

A consumer protection law that prohibits false or misleading advertising is known as a:

A. Deceptive Advertising Law

Correct B. Truth-in-Advertising Law

C. Consumer Protection Act

D. Fair Trade Law

Correct Answer: B

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Question 19

A company's 'Marketing Mix' consists of the following elements:

Correct A. Product, Price, Place, Promotion

B. Product, Price, Place, People

C. Product, Price, Promotion, Place

D. Product, Price, People, Place

Correct Answer: A

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Question 20

A 'Transportation Mode' that involves the movement of goods by land is known as:

A. Rail Transport

Correct B. Road Transport

C. Air Transport

D. Water Transport

Correct Answer: B

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Question 21

A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. Which of the following is a requirement for registration?

A. Obtain a Certificate of Incorporation

Correct B. File a Memorandum and Articles of Association

C. Publish a notice in the Gazette

D. Obtain a Business Name Certificate

Correct Answer: B

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Question 22

A company's Memorandum of Association is a document that outlines its

A. Objectives and goals

B. Share capital and ownership structure

C. Business operations and management

Correct D. All of the above

Correct Answer: D

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Question 23

A warehouse's inventory management system uses the First-In-First-Out (FIFO) method. Which of the following is a benefit of this method?

A. Reduces storage costs

B. Increases storage capacity

C. Minimizes stockouts

Correct D. Ensures oldest stock is sold first

Correct Answer: D

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Question 24

A bank's cash management system uses the float method to manage its cash reserves. Which of the following is a risk associated with this method?

A. Inadequate cash reserves

B. Overdraft fees

Correct C. Insufficient liquidity

D. Increased interest rates

Correct Answer: C

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Question 25

A company's transport management system uses the Just-In-Time (JIT) method to manage its inventory. Which of the following is a benefit of this method?

A. Reduces inventory costs

B. Increases storage capacity

C. Minimizes stockouts

Correct D. Ensures timely delivery

Correct Answer: D

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