Practice post utme joseph ayo babalola university commerce 2025 Past Questions

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 firm's revenue is calculated as the product of the number of units sold and the

Correct A. price per unit

B. average revenue per unit

C. marginal revenue per unit

D. total revenue per unit

Correct Answer: A

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Question 3

A consumer's indifference curve is a graphical representation of the

A. maximum utility that can be obtained from a given quantity of a good

B. minimum utility that can be obtained from a given quantity of a good

Correct C. optimal combination of two goods that provides the highest level of satisfaction

D. optimal combination of two goods that provides the lowest level of satisfaction

Correct Answer: C

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Question 4

A firm's cost of production is the sum of its

Correct A. fixed costs and variable costs

B. fixed costs and average costs

C. variable costs and average costs

D. fixed costs and marginal costs

Correct Answer: A

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Question 5

A firm's profit is calculated as the difference between its

Correct A. total revenue and total cost

B. total revenue and average cost

C. marginal revenue and marginal cost

D. average revenue and average cost

Correct Answer: A

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Question 6

A company is considering the introduction of a new product line. The product will be manufactured in a foreign country and sold in Nigeria. What type of business unit is this?

A. Sole Trade

Correct B. Company

C. Joint Venture

D. Franchise

Correct Answer: B

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Question 7

A consumer protection agency has received a complaint about a company's advertisement. The advertisement claims that a product can cure a certain disease, but the agency has evidence that the product is ineffective. What is the legal basis for the agency's action?

A. Consumer Protection Act

B. Trade Practices Act

Correct C. Advertising Standards Act

D. Product Liability Act

Correct Answer: C

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Question 8

A company is considering the use of a new production technology. The technology will reduce production costs, but it may also increase the risk of product defects. What is the name of the production concept that the company is considering?

A. Mass Production

B. Batch Production

C. Job Production

Correct D. Flexible Manufacturing System

Correct Answer: D

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Question 9

A company is considering the introduction of a new product line. The product will be manufactured in Nigeria and sold in other African countries. What type of business unit is this?

A. Sole Trade

B. Company

C. Joint Venture

Correct D. Export House

Correct Answer: D

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Question 10

A consumer protection agency has received a complaint about a company's advertisement. The advertisement claims that a product is safe for use by children, but the agency has evidence that the product is not safe. What is the legal basis for the agency's action?

A. Consumer Protection Act

B. Trade Practices Act

Correct C. Advertising Standards Act

D. Product Liability Act

Correct Answer: C

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Question 11

A firm's production function is given by Q = 2L^0.5 * K^0.5, where Q is output, L is labor, and K is capital. If the firm wants to increase its output by 20% while keeping labor constant, how much should it increase its capital?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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Question 12

A consumer's budget constraint is given by 2x + 3y = 12, where x is the quantity of good x and y is the quantity of good y. If the consumer's income increases by 20%, how will the budget constraint shift?

A. Shifts inward

Correct B. Shifts outward

C. Remains unchanged

D. Rotates counterclockwise

Correct Answer: B

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Question 13

A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm wants to maximize its revenue, what price should it charge?

A. ₦20

Correct B. ₦30

C. ₦40

D. ₦50

Correct Answer: B

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Question 14

A consumer's indifference curve is given by U = 2x + 3y, where U is utility and x and y are quantities of goods x and y. If the consumer's income increases by 20%, how will the indifference curve shift?

A. Shifts inward

Correct B. Shifts outward

C. Remains unchanged

D. Rotates counterclockwise

Correct Answer: B

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Question 15

A firm's production function is given by Q = 2L^0.5 * K^0.5, where Q is output, L is labor, and K is capital. If the firm wants to increase its output by 20% while keeping labor constant, how much should it increase its capital?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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Question 16

SHARED STIMULUS

The company wants to maximize its profit.

A company has two production lines, A and B, with the following production costs and revenues per unit:

A. ₦1000

Correct B. ₦1200

C. ₦1500

D. ₦1800

Correct Answer: B

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Question 17

SHARED STIMULUS

The agency wants to identify the month with the highest number of complaints.

A consumer protection agency has the following data on the number of complaints received per month:

A. January

Correct B. February

C. March

D. April

Correct Answer: B

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Question 18

SHARED STIMULUS

The company wants to minimize its production costs.

A company has the following data on its production costs and revenues per unit:

A. ₦1500

B. ₦1200

Correct C. ₦1000

D. ₦1800

Correct Answer: C

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Question 19

SHARED STIMULUS

The company wants to maximize its revenue.

A transport company has the following data on its fuel consumption and revenue per trip:

A. ₦500

B. ₦600

Correct C. ₦700

D. ₦800

Correct Answer: C

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Question 20

SHARED STIMULUS

The company wants to increase its revenue.

A communication company has the following data on its customer base and revenue per customer:

A. ₦1000

Correct B. ₦1200

C. ₦1500

D. ₦1800

Correct Answer: B

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Question 21

A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is NOT a characteristic of this strategy?

A. Highly focused on a specific target market

B. Involves a mix of advertising, sales promotions, and public relations

C. Emphasizes building long-term relationships with customers

Correct D. Primarily uses social media to reach customers

Correct Answer: D

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Question 22

A firm's break-even point is the point at which its total revenue equals its total fixed costs. If the firm's total fixed costs are ₦100,000 and its selling price is ₦500, and its variable cost per unit is ₦200, how many units must it sell to break even?

A. 200 units

Correct B. 250 units

C. 300 units

D. 350 units

Correct Answer: B

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Question 23

A company's insurance policy has a deductible of ₦50,000 and a maximum payout of ₦500,000. If the company suffers a loss of ₦750,000, how much will it pay out of pocket?

A. ₦50,000

B. ₦100,000

Correct C. ₦150,000

D. ₦200,000

Correct Answer: C

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Question 24

A firm's marketing mix involves a product with a high level of quality, a price that is slightly above average, a promotion that is highly targeted, and a distribution channel that is highly efficient. Which of the following is a characteristic of this marketing mix?

Correct A. Highly focused on a specific target market

B. Involves a mix of advertising, sales promotions, and public relations

C. Emphasizes building long-term relationships with customers

D. Primarily uses social media to reach customers

Correct Answer: A

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Question 25

A company's break-even point is the point at which its total revenue equals its total fixed costs. If the firm's total fixed costs are ₦150,000 and its selling price is ₦600, and its variable cost per unit is ₦250, how many units must it sell to break even?

A. 250 units

Correct B. 300 units

C. 350 units

D. 400 units

Correct Answer: B

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