POST UTME GREENFIELD UNIVERSITY 2017 Commerce | Objective

Are you preparing for POST UTME GREENFIELD UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2017 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
In a perfectly competitive market, the supply curve is typically represented by the marginal cost curve. What is the relationship between the marginal revenue product of labor (MRPL) and the marginal factor cost (MFC) in the short run?
Correct A. MRPL > MFC
B. MRPL < MFC
C. MRPL = MFC
D. MRPL and MFC are unrelated

Correct Answer: A

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Question 2
A firm's demand curve is given by Qd = 100 - 2P. If the price elasticity of demand is constant, what is the price elasticity of demand?
A. 0.5
B. 1.0
C. 2.0
Correct D. -1.0

Correct Answer: D

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Question 3
A consumer has a budget constraint of 100 and a preference for two goods: x and y. The consumer's indifference curves are given by U(x,y) = xy. If the price of good x is 10 and the price of good y is 20, what is the consumer's optimal consumption bundle?
A. (5,5)
Correct B. (10,5)
C. (5,10)
D. (10,10)

Correct Answer: B

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Question 4
A firm's production function is given by Q = 2L + 3K. If the firm's cost function is given by C = 10L + 20K, what is the firm's profit function?
Correct A. P = 2L + 3K - 10L - 20K
B. P = 2L + 3K + 10L + 20K
C. P = 2L + 3K - 10L + 20K
D. P = 2L + 3K + 10L - 20K

Correct Answer: A

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Question 5
A firm's demand curve is given by Qd = 100 - 2P. If the price elasticity of demand is constant, what is the price elasticity of demand?
A. 0.5
B. 1.0
C. 2.0
Correct D. -1.0

Correct Answer: D

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Question 6
In a perfectly competitive market, the supply curve is typically represented by the marginal cost curve. What is the relationship between the marginal revenue curve and the marginal cost curve in this market?
A. The marginal revenue curve is always above the marginal cost curve.
Correct B. The marginal revenue curve is always below the marginal cost curve.
C. The marginal revenue curve intersects the marginal cost curve at the equilibrium price.
D. The marginal revenue curve is horizontal and the marginal cost curve is upward sloping.

Correct Answer: B

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Question 7
A company is considering two different marketing strategies: a high-low pricing strategy and a penetration pricing strategy. Which strategy is more likely to increase market share in the short run?
A. High-low pricing strategy
Correct B. Penetration pricing strategy
C. Both strategies are equally effective
D. Neither strategy is effective

Correct Answer: B

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Question 8
A consumer has a budget of ₦10,000 and is considering purchasing two different products: Product A and Product B. Product A costs ₦5,000 and Product B costs ₦3,000. What is the opportunity cost of purchasing Product B?
Correct A. ₦2,000
B. ₦5,000
C. ₦7,000
D. ₦10,000

Correct Answer: A

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Question 9
A company has a monopoly in the market and is considering increasing its price. What is the effect of this price increase on the company's revenue?
A. The revenue will decrease
Correct B. The revenue will increase
C. The revenue will remain the same
D. The revenue will fluctuate

Correct Answer: B

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Question 10
A consumer has a utility function U(x, y) = 2x + 3y, where x and y are the quantities of two different goods. What is the marginal utility of good x?
Correct A. 2
B. 3
C. 4
D. 5

Correct Answer: A

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Question 11
A firm's marketing strategy involves a mix of promotional activities to create awareness and stimulate demand for its products. Which of the following is NOT a characteristic of a promotional mix?
A. Advertising
B. Personal Selling
C. Sales Promotion
Correct D. Public Relations

Correct Answer: D

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Question 12
A company's foreign exchange exposure arises from its transactions in foreign currencies. Which of the following is a method of managing foreign exchange risk?
Correct A. Hedging
B. Speculation
C. Diversification
D. Exporting

Correct Answer: A

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Question 13
A bank's primary function is to act as a financial intermediary between savers and borrowers. Which of the following is a type of financial intermediary?
Correct A. Commercial Bank
B. Investment Bank
C. Merchant Bank
D. Central Bank

Correct Answer: A

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Question 14
A firm's marketing strategy involves a mix of promotional activities to create awareness and stimulate demand for its products. Which of the following is a characteristic of a promotional mix?
Correct A. Advertising
B. Personal Selling
C. Sales Promotion
D. Public Relations

Correct Answer: A

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Question 15
A company's foreign exchange exposure arises from its transactions in foreign currencies. Which of the following is a method of managing foreign exchange risk?
Correct A. Hedging
B. Speculation
C. Diversification
D. Exporting

Correct Answer: A

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Question 16
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost. Which of the following is a correct example of comparative advantage?
A. Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 100 units of good Y.
Correct B. Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 50 units of good Y.
C. Country A produces 50 units of good X and 100 units of good Y, while Country B produces 100 units of good X and 50 units of good Y.
D. Country A produces 50 units of good X and 50 units of good Y, while Country B produces 100 units of good X and 100 units of good Y.

Correct Answer: B

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Question 17
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm wants to produce 100 units of output, how many units of labor are required if K = 16?
A. 10
Correct B. 20
C. 30
D. 40

Correct Answer: B

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Question 18
A consumer has a budget of ₦1000 and faces the following prices: good X = ₦200, good Y = ₦300. If the consumer's indifference curves are given by U = 2X^0.5Y^0.5, how many units of good X will the consumer buy?
A. 2
B. 3
Correct C. 4
D. 5

Correct Answer: C

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Question 19
A firm's cost function is given by C = 2L + 3K, where C is cost, L is labor, and K is capital. If the firm wants to minimize its cost, how many units of labor should it hire if K = 10?
A. 5
Correct B. 10
C. 15
D. 20

Correct Answer: B

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Question 20
A consumer has a budget of ₦500 and faces the following prices: good X = ₦100, good Y = ₦200. If the consumer's indifference curves are given by U = X^0.5Y^0.5, how many units of good X will the consumer buy?
A. 2
Correct B. 3
C. 4
D. 5

Correct Answer: B

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Question 21
A firm's revenue function is given by R = 2X^2, where R is revenue and X is output. If the firm wants to maximize its revenue, how many units of output should it produce?
A. 2
B. 3
Correct C. 4
D. 5

Correct Answer: C

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Question 22
A consumer has a budget of ₦2000 and faces the following prices: good X = ₦500, good Y = ₦1000. If the consumer's indifference curves are given by U = X^0.5Y^0.5, how many units of good X will the consumer buy?
A. 2
B. 3
Correct C. 4
D. 5

Correct Answer: C

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Question 23
A firm's cost function is given by C = 2L + 3K, where C is cost, L is labor, and K is capital. If the firm wants to minimize its cost, how many units of labor should it hire if K = 20?
A. 10
B. 15
Correct C. 20
D. 25

Correct Answer: C

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Question 24
Under the Consumer Protection Act, what is the primary responsibility of a consumer in a contract?
A. To ensure the product is of good quality
B. To ensure the product is delivered on time
C. To ensure the product is at the agreed price
Correct D. To ensure the product is as described

Correct Answer: D

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Question 25
A company is considering exporting its products to a foreign market. What is the first step it should take?
Correct A. Conduct market research
B. Establish a local subsidiary
C. Negotiate with potential buyers
D. Obtain necessary export licenses

Correct Answer: A

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