POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer purchases a product from a retailer for ₦10,000. If the retailer offers a discount of 10% on the product, how much will the consumer pay?
A. ₦9,000
B. ₦9,500
C. ₦10,000
D. ₦10,500
Question 2
A firm's cost function is given by C = 50 + 10L + 5K. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in total cost?
A. -5%
B. 0%
C. 5%
D. 10%
Question 3
A company is a business owned by shareholders. What is the main disadvantage of this type of business?
A. More tax to pay
B. Less control over the business
C. More opportunities for growth
D. More risk of bankruptcy
Question 4
A producer specializes in producing a single product, such as a manufacturing company that only produces cars. What is the benefit of this specialization?
A. Increased efficiency
B. Reduced costs
C. Improved quality control
D. Increased market share
Question 5
A firm's profit function is given by π = R - C. If the firm's revenue and cost functions are given by R = 100Q - 2Q^2 and C = 50 + 10L + 5K respectively, what is the effect of an increase in output on profit?
A. Profit increases
B. Profit decreases
C. Profit remains unchanged
D. Profit becomes perfectly elastic
Question 6
A firm is considering two different production processes for a new product. Process A has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit. Process B has a fixed cost of ₦150,000 and a variable cost of ₦30 per unit. If the selling price of the product is ₦80 per unit, what is the minimum number of units that the firm needs to produce to break even?
A. 1000 units
B. 1200 units
C. 1500 units
D. 2000 units
Question 7
A company has a warehouse with a capacity of 10,000 units. The company receives a shipment of 5,000 units and already has 3,000 units in stock. If the company wants to maintain a safety stock of 20% of the total capacity, how many units can the company store in the warehouse?
A. 6,000 units
B. 8,000 units
C. 10,000 units
D. 12,000 units
Question 8
A company has a warehouse with a capacity to store 1000 units of goods. The warehouse is currently 70% full, and the company wants to store an additional 500 units of goods. If the storage cost is ₦5 per unit and the rental cost is ₦1000 per day, what is the minimum number of days the company needs to rent the warehouse to store the additional 500 units of goods?
A. 10 days
B. 15 days
C. 20 days
D. 25 days
Question 9
A firm is considering two different production processes for its product. Process A has a fixed cost of ₦10,000 and a variable cost of ₦5 per unit, while Process B has a fixed cost of ₦20,000 and a variable cost of ₦3 per unit. If the selling price of the product is ₦15 per unit, which process should the firm use to maximize its profit?
A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Question 10
A firm's revenue function is given by R = 100Q - 2Q^2. If the firm's output is increased by 10%, what is the percentage change in revenue?
A. -10%
B. 0%
C. 5%
D. 10%
Question 11
A firm specializes in producing only one good. This specialization is an example of which of the following?
A. Division of Labor
B. Economies of Scale
C. Comparative Advantage
D. Opportunity Cost
Question 12
A warehouse manager uses the First-In-First-Out (FIFO) inventory management system. What is the advantage of this system?
A. Reduced storage costs
B. Improved inventory turnover
C. Increased accuracy in tracking inventory
D. Enhanced customer satisfaction
Question 13
A company's transport manager is responsible for the safe transportation of goods. What is the primary responsibility of the transport manager?
A. To ensure that goods are delivered on time.
B. To ensure that goods are transported safely.
C. To ensure that goods are transported at the lowest cost.
D. To ensure that goods are transported by the most convenient route.
Question 14
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will
A. increase
B. decrease
C. remain the same
D. become perfectly inelastic
Question 15
A company has a warehouse with a capacity to store 1000 units of goods. The warehouse is currently 70% full, and the company wants to store an additional 500 units of goods. If the storage cost is ₦5 per unit and the rental cost is ₦1000 per day, what is the minimum number of days the company needs to rent the warehouse to store the additional 500 units of goods?
A. 10 days
B. 15 days
C. 20 days
D. 25 days

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