POST UTME IGBINEDION UNIVERSITY 2019 Commerce | Objective

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Question 1
The Central Bank of Nigeria (CBN) uses the following monetary policy tools to regulate the money supply in the economy. Which of the following is NOT one of the tools?
A. Open Market Operations (OMO)
B. Reserve Requirements
Correct C. Fiscal Policy
D. Quantitative Easing

Correct Answer: C

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Question 2
A company is considering exporting its products to a foreign market. Which of the following is a major advantage of exporting?
A. Increased competition
B. Reduced market share
Correct C. Increased market share
D. Reduced profit margins

Correct Answer: C

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Question 3
A sole trader is considering expanding its business by taking on a partner. What are the advantages of this decision?
A. Increased financial risk
B. Reduced financial risk
Correct C. Increased financial reward
D. Reduced financial reward

Correct Answer: C

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Question 4
A company is considering using a new marketing strategy to increase sales. Which of the following is a major disadvantage of this strategy?
A. Increased customer loyalty
Correct B. Reduced customer loyalty
C. Increased market share
D. Reduced market share

Correct Answer: B

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Question 5
A company is considering investing in a new project. Which of the following is a major consideration?
A. Financial return on investment
B. Social return on investment
C. Environmental return on investment
Correct D. All of the above

Correct Answer: D

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Question 6
A sole trader's business is considered a separate legal entity from the owner's personal assets. Which of the following is a correct statement regarding the liability of a sole trader?
A. The sole trader's personal assets are not at risk in case of business debts.
Correct B. The sole trader's personal assets are at risk in case of business debts.
C. The sole trader's business is not liable for personal debts.
D. The sole trader's business is not liable for personal assets.

Correct Answer: B

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Question 7
A company's production process involves the use of specialized machinery. Which of the following is a benefit of specialization in production?
A. Increased production costs
Correct B. Reduced production costs
C. Increased production time
D. Reduced product quality

Correct Answer: B

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Question 8
A business owner purchases an insurance policy to protect against potential losses. Which of the following is a type of insurance policy that covers against business interruption?
A. Liability insurance
B. Property insurance
Correct C. Business interruption insurance
D. Workers' compensation insurance

Correct Answer: C

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Question 9
A warehouse manager is responsible for maintaining accurate inventory records. Which of the following is a method of inventory control?
A. First-in, first-out (FIFO)
B. Last-in, first-out (LIFO)
C. Weighted average cost (WAC)
Correct D. Just-in-time (JIT)

Correct Answer: D

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Question 10
A consumer purchases a product that is defective. Which of the following is a consumer protection law that applies in this situation?
A. Consumer Protection Act
B. Fair Trading Act
Correct C. Product Liability Act
D. Sales of Goods Act

Correct Answer: C

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Question 11
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will
A. increase
Correct B. decrease
C. remain constant
D. shift to the left

Correct Answer: B

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Question 12
A firm's revenue is calculated by multiplying the price of a product by the quantity sold. If a firm sells 100 units of a product at ₦200 each, what is its total revenue?
A. ₦15000
Correct B. ₦20000
C. ₦25000
D. ₦30000

Correct Answer: B

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Question 13
The diagram below shows the supply and demand curves for a commodity. If the price of the commodity is ₦100, what is the equilibrium quantity?
A. 50
Correct B. 100
C. 200
D. 500

Correct Answer: B

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Question 14
A firm's marginal revenue is the change in its total revenue resulting from a one-unit change in the quantity sold. If a firm's total revenue is ₦1000 when it sells 10 units of a product, what is its marginal revenue?
A. ₦100
Correct B. ₦200
C. ₦500
D. ₦1000

Correct Answer: B

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Question 15
The diagram below shows the production possibilities frontier for two countries. If Country A produces 100 units of good X and 50 units of good Y, what is its opportunity cost of producing good X?
A. 10
B. 20
Correct C. 50
D. 100

Correct Answer: C

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Question 16
A company's marketing strategy involves a combination of advertising, sales promotions, and public relations. Which of the following best describes the primary goal of this strategy?
A. To increase brand awareness
B. To create a positive image of the company
Correct C. To generate leads and drive sales
D. To build customer loyalty

Correct Answer: C

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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 increases labor from 100 to 121 units, and capital from 100 to 121 units, what is the percentage change in output?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 18
A warehouse has a storage capacity of 1000 units. The warehouse is currently 70% full, with 700 units stored. If 300 more units are added to the warehouse, what is the new percentage of the warehouse that is full?
A. 50%
Correct B. 60%
C. 70%
D. 80%

Correct Answer: B

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Question 19
A company has a 10% chance of defaulting on a loan, and a 20% chance of experiencing a recession. If the company has a 5% chance of defaulting and experiencing a recession, what is the probability of the company defaulting on the loan?
A. 0.05
B. 0.10
Correct C. 0.15
D. 0.20

Correct Answer: C

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Question 20
A bank has a 5% interest rate on a savings account, and a 10% interest rate on a certificate of deposit. If a customer has 1000 in a savings account and 500 in a certificate of deposit, what is the total interest earned after one year?
A. ₦125
Correct B. ₦150
C. ₦175
D. ₦200

Correct Answer: B

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Question 21
In a perfectly competitive market, the law of diminishing marginal utility implies that the demand curve for a firm's product is
A. inelastic
B. elastic
C. unitary
Correct D. perfectly inelastic

Correct Answer: D

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Question 22
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, then the firm's current output level is
A. 24
B. 32
Correct C. 36
D. 48

Correct Answer: C

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Question 23
A company's marketing mix includes the following elements: product, price, promotion, and place. Which of the following is NOT a part of the marketing mix?
A. product
B. price
C. promotion
Correct D. finance

Correct Answer: D

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Question 24
A firm's cost function is given by C(L,K) = 2L + 3K. If the firm's current labor and capital inputs are L = 4 and K = 6, respectively, then the firm's current total cost is
A. 20
B. 22
C. 24
Correct D. 26

Correct Answer: D

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Question 25
A company's supply chain includes the following stages: production, transportation, and storage. Which of the following is NOT a type of transportation mode?
A. road
B. rail
C. air
Correct D. pipeline

Correct Answer: D

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