POST UTME MADONNA UNIVERSITY 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering exporting goods to a foreign country. What type of risk is the company exposed to?
A. Commercial risk
B. Currency risk
C. Country risk
D. Political risk
Question 2
The diagram below represents a production possibility frontier. If the economy is currently at point A, and the government decides to implement a policy that shifts the production possibility frontier to the right, what will happen to the opportunity cost of producing consumer goods?
A. increase
B. decrease
C. remain constant
D. become negative
Question 3
A company's marketing strategy involves creating a sense of exclusivity to encourage customers to make a purchase. This tactic is an example of which of the following?
A. Scarcity principle
B. Loss aversion
C. Endowment effect
D. Social proof
Question 4
A company's foreign trade involves exporting goods to a country with a different currency. Which of the following is a type of exchange rate?
A. Spot rate
B. Forward rate
C. Nominal rate
D. Real rate
Question 5
A company's business involves transporting goods from one location to another. Which of the following is a type of transportation?
A. Land transport
B. Air transport
C. Sea transport
D. Rail transport
Question 6
A company is considering launching a new product. What type of market research is most relevant to this decision?
A. Competitor analysis
B. Market segmentation
C. Product life cycle analysis
D. SWOT analysis
Question 7
A firm is considering two different marketing strategies: strategy A and strategy B. Strategy A involves a price of ₦100 and a quantity of 100 units, while strategy B involves a price of ₦120 and a quantity of 80 units. If the firm's revenue is given by R = P * Q, what is the total revenue for each strategy?
A. Strategy A: ₦10000, Strategy B: ₦9600
B. Strategy A: ₦10000, Strategy B: ₦10000
C. Strategy A: ₦10000, Strategy B: ₦8000
D. Strategy A: ₦10000, Strategy B: ₦8000
Question 8
A company is considering launching a new product. What type of market research is most relevant to this decision?
A. Competitor analysis
B. Market segmentation
C. Product life cycle analysis
D. SWOT analysis
Question 9
A company is considering outsourcing its production to a foreign supplier. The supplier has offered to supply the goods at a price of 10 per unit, which is 20% lower than the company's current production cost. However, the company's logistics manager has warned that the transportation costs will be higher due to the longer distance. What is the net cost savings to the company?
A. ₦1.5 million
B. ₦2 million
C. ₦2.5 million
D. ₦3 million
Question 10
In a perfectly competitive market, the demand curve for a firm's product is its
A. marginal revenue curve
B. average revenue curve
C. marginal cost curve
D. average cost curve
Question 11
A company is considering entering into a contract with a supplier from a foreign country. What type of risk is the company exposed to?
A. Commercial risk
B. Currency risk
C. Country risk
D. Political risk
Question 12
A firm's production function is given by Q = 2L + 3K, where Q is the quantity produced, L is the number of labor hours, and K is the amount of capital. If the firm is currently producing 10 units of output with 5 labor hours and 2 units of capital, what is the marginal product of labor?
A. 2
B. 3
C. 4
D. 5
Question 13
A company's business involves creating and selling products. Which of the following is a type of business unit?
A. Sole trader
B. Partnership
C. Company
D. Cooperative
Question 14
A company has a production function given by Q = 2L^0.5K^0.5. If the company wants to produce 16 units of output, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, what is the minimum cost of production?
A. ₦4000
B. ₦6000
C. ₦8000
D. ₦10000
Question 15
A company is considering setting up a new production line. The production line will require an initial investment of ₦10 million and will generate an annual profit of ₦2 million. However, the company's accountant has warned that the production line will also require an annual maintenance cost of ₦1 million. What is the net present value of the production line?
A. ₦8 million
B. ₦9 million
C. ₦10 million
D. ₦11 million

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