POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering two different transportation modes for its products. Mode A involves a high fixed cost but a low variable cost, while Mode B involves a low fixed cost but a high variable cost. If the company expects to transport 10,000 units per year for 5 years, which mode should it choose if it wants to minimize its total transportation costs?
A. Mode A
B. Mode B
C. Both modes are equally cost-effective
D. More information is needed to make a decision
Question 2
A company has a production process that involves the use of a machine with a 10% failure rate. What is the probability that the machine will fail within the first 5 production cycles?
A. 0.05
B. 0.10
C. 0.15
D. 0.20
Question 3
A firm produces two goods, X and Y, using two inputs, labor (L) and capital (K). The production function for good X is given by X = 2L^0.5K^0.5. The production function for good Y is given by Y = 3L^0.25K^0.75. If the firm has 100 units of labor and 200 units of capital, how many units of good X will it produce?
A. 100
B. 200
C. 300
D. 400
Question 4
A firm is considering a new product line. The product has a fixed cost of 100,000 and a variable cost of 50 per unit. The selling price of the product is 75 per unit. If the firm expects to sell 10,000 units of the product, what is the profit per unit?
A. 25
B. 30
C. 35
D. 40
Question 5
A company has a warehouse with a capacity of 10,000 units. If the current stock level is 8,000 units and the daily demand is 200 units, what is the maximum number of days the company can maintain the current stock level without reordering?
A. 30 days
B. 40 days
C. 50 days
D. 60 days
Question 6
A company's marketing budget is ₦1,000,000. If the company allocates 30% of the budget to advertising, how much is allocated to advertising?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 7
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 tool used by the CBN to control inflation?
A. Fiscal Policy
B. Monetary Policy
C. Supply-Side Policy
D. Demand-Side Policy
Question 8
A consumer purchases a product for ₦1,000 and pays a 5% sales tax. What is the total amount paid by the consumer?
A. ₦1,050
B. ₦1,000
C. ₦1,050
D. ₦1,050
Question 9
A sole trader's business is considered a separate legal entity from its owner. Discuss the implications of this separation on the owner's personal liability.
A. The owner's personal assets are protected from business debts.
B. The owner's personal assets are liable for business debts.
C. The business is not considered a separate entity from its owner.
D. The owner's personal assets are not affected by business debts.
Question 10
A company is considering exporting its products to a foreign market. What is the primary advantage of exporting?
A. Increased revenue
B. Reduced competition
C. Improved brand recognition
D. Access to new markets
Question 11
A firm is considering entering a new market. The market research indicates that the demand for the product is price-elastic, and the firm's marginal cost is constant. If the firm wants to maximize its profit, what should it do?
A. Increase the price of the product
B. Decrease the price of the product
C. Increase the production level
D. Decrease the production level
Question 12
Determine the value of x in the equation ( log_{10} (x^2) = 4 ).
A. 10
B. 100
C. 1000
D. 10000
Question 13
A firm has the following revenue function: ( R(x) = 3x^2 - 2x + 10 ). Determine the rate of change of revenue when x = 3.
A. 16
B. 18
C. 20
D. 22
Question 14
A company has a warehouse with a capacity of 10,000 units. The current stock level is 8,000 units. If the company receives a new shipment of 2,000 units, what is the new stock level?
A. 6,000 units
B. 8,000 units
C. 10,000 units
D. 12,000 units
Question 15
A firm has the following cost function: ( C(x) = 2x^2 + 5x + 10 ). Determine the marginal cost when x = 5.
A. 20
B. 30
C. 40
D. 50

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