POST UTME MADONNA UNIVERSITY 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A bank's balance sheet is given by Assets = Liabilities + Equity. If the bank's assets increase by 10% and its liabilities increase by 5%, what is the percentage increase in its equity?
A. 3%
B. 5%
C. 7%
D. 9%
Question 2
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the number of labor hours, and K is the capital invested. If the company wants to increase its production by 20% while keeping labor hours constant, what percentage increase in capital investment is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 3
In a perfectly competitive market, the law of diminishing marginal utility implies that the demand curve for a firm's product is likely to be:
A. a vertical line
B. a horizontal line
C. an upward-sloping curve
D. a downward-sloping curve
Question 4
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 = 4 and K = 9, respectively, what is the firm's current output?
A. 24
B. 36
C. 48
D. 60
Question 5
The concept of specialization in production is closely related to the idea of comparative advantage. Explain how a country can benefit from specializing in the production of a particular good, even if it is not the most efficient producer of that good.
A. By producing a good that is in high demand and has a high price elasticity of demand.
B. By producing a good that is in high demand and has a low price elasticity of demand.
C. By producing a good that is in low demand and has a high price elasticity of demand.
D. By producing a good that is in low demand and has a low price elasticity of demand.
Question 6
A marketing manager is planning a campaign to promote a new product. Which of the following is a type of advertising?
A. Print advertising
B. Digital advertising
C. Outdoor advertising
D. Event marketing
Question 7
A company is considering the introduction of a new product line. The product has a high fixed cost of production, but a low variable cost. The company expects to sell 100 units of the product per month at a price of ₦500 per unit. However, there is a 20% chance that the product will not sell at all. What is the expected profit per unit of the product?
A. ₦400
B. ₦450
C. ₦500
D. ₦550
Question 8
A company has a 20% chance of experiencing a loss of ₦100,000 and a 80% chance of experiencing a gain of ₦50,000. The expected value of the company's outcome is:
A. ₦2,000
B. ₦4,000
C. ₦6,000
D. ₦8,000
Question 9
A consumer has a complaint about a product that was purchased from a company. Which of the following is a type of consumer protection?
A. Product liability
B. Consumer rights
C. Consumer education
D. Consumer advocacy
Question 10
A company's memorandum of association is a document that outlines its
A. Objectives
B. Share Capital
C. Business Activities
D. All of the above
Question 11
A company is considering a merger with another company. What is the primary reason for this decision?
A. To increase market share
B. To reduce competition
C. To improve financial performance
D. To increase employee numbers
Question 12
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is P = 20, what is the firm's current quantity demanded?
A. 60
B. 80
C. 100
D. 120
Question 13
A business uses a foreign exchange contract to hedge against currency fluctuations. What is the primary purpose of this contract?
A. To fix the exchange rate
B. To reduce exchange rate risk
C. To increase exchange rate gains
D. To speculate on exchange rate movements
Question 14
In a perfectly competitive market, the supply curve is upward-sloping because
A. Firms are willing to supply more of the good as its price increases.
B. Firms are willing to supply less of the good as its price increases.
C. Firms are willing to supply the same quantity of the good regardless of its price.
D. Firms are willing to supply more of the good as its price decreases.
Question 15
A company has a production process that involves the use of a patented machine. Which of the following is a type of production specialization?
A. Vertical specialization
B. Horizontal specialization
C. Product specialization
D. Process specialization

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