POST UTME LASU 2019 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A sole trader is a type of business that is owned and operated by _______.
A. One Person
B. Two or More People
C. A Partnership
D. A Company
Question 2
A foreign trade agreement is an agreement between two or more countries to _______.
A. Export Goods and Services
B. Import Goods and Services
C. Restrict the Movement of Goods and Services
D. Eliminate Tariffs and Quotas
Question 3
A bank's return on assets (ROA) is 0.15. If the bank has total assets of ₦120 billion, what is its net income?
A. ₦18 billion
B. ₦20 billion
C. ₦22 billion
D. ₦25 billion
Question 4
A firm's break-even point is the point at which its total revenue equals its total fixed costs. Which of the following is a correct formula for calculating the break-even point?
A. BEQ = (Fixed Costs + Variable Costs) / Selling Price
B. BEQ = (Fixed Costs + Variable Costs) / (Selling Price - Variable Costs)
C. BEQ = (Fixed Costs - Variable Costs) / Selling Price
D. BEQ = (Fixed Costs + Variable Costs) / (Selling Price + Variable Costs)
Question 5
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. What is the opportunity cost of producing a good?
A. The cost of producing the good in terms of other goods that could be produced instead
B. The cost of producing the good in terms of labor hours
C. The cost of producing the good in terms of capital investment
D. The cost of producing the good in terms of raw materials
Question 6
The process of promoting a product or service to potential customers is known as _______.
A. Marketing
B. Advertising
C. Sales Promotion
D. Public Relations
Question 7
A company's supply chain involves the transportation of goods from the factory to the warehouse. Which of the following is a type of transportation mode?
A. Air
B. Land
C. Sea
D. Rail
Question 8
A firm's revenue function is given by R(x) = 100x - 2x^2, where x is the number of units sold. If the firm sells 10 units, what is its marginal revenue?
A. 80
B. 90
C. 100
D. 110
Question 9
A firm specializes in producing a single product, which it sells in a large market. This type of production is known as _______.
A. Mass Production
B. Batch Production
C. Job Production
D. Continuous Production
Question 10
A company's break-even point is the point at which its total revenue equals its total cost. What is the break-even point for a company with a fixed cost of ₦100,000 and a variable cost of ₦50 per unit, if it sells its product at ₦150 per unit?
A. 1000
B. 2000
C. 5000
D. 10000
Question 11
A country's trade balance is given by TB = X - M, where TB is the trade balance, X is exports and M is imports. If the country's exports are ₦100 million and its imports are ₦80 million, what is the trade balance?
A. ₦10 million
B. ₦20 million
C. ₦30 million
D. ₦40 million
Question 12
A warehouse is a facility used for storing goods. Which of the following is a correct advantage of using a warehouse?
A. Reduced transportation costs
B. Increased storage capacity
C. Improved inventory management
D. All of the above
Question 13
A firm's cost function is given by C(x) = 2x^2 + 10x, where x is the number of units produced. If the firm produces 10 units, what is the total cost?
A. 100
B. 200
C. 300
D. 400
Question 14
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 wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth.
B. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 50 units of cloth.
C. Country A produces 100 units of cloth and 50 units of wheat, while Country B produces 50 units of cloth and 100 units of wheat.
D. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 100 units of wheat and 50 units of cloth.
Question 15
A firm's cost function is given by C = 2L + 3K, where C is the total cost, L is labor and K is capital. If the firm hires 4 units of labor and 2 units of capital, what is the total cost?
A. ₦20
B. ₦30
C. ₦40
D. ₦50

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