POST UTME NOUN 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's cost function is given by C = 2L + 3H, where C is cost, L is labor, and H is capital. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in cost?
A. 5%
B. 10%
C. 15%
D. 20%
Question 2
A consumer is considering purchasing a product from a foreign seller. Which of the following is a key consideration in the decision-making process?
A. Product quality and features
B. Price and shipping costs
C. Cultural and language differences
D. Taxes and tariffs
Question 3
A company's insurance policy has a deductible of ₦1000. If the company has a claim of ₦5000, how much will it pay out after deducting the deductible?
A. ₦4000
B. ₦4500
C. ₦5000
D. ₦5500
Question 4
In a perfectly competitive market, firms produce at the point where their marginal cost equals their marginal revenue. What is the implication of this for the firm's profit-maximizing output?
A. The firm will produce at a level where its average cost is minimized.
B. The firm will produce at a level where its marginal cost equals its average revenue.
C. The firm will produce at a level where its marginal cost equals its marginal revenue.
D. The firm will produce at a level where its average revenue is maximized.
Question 5
The concept of 'caveat emptor' is most closely associated with which of the following areas of consumer protection?
A. Consumer Rights Act
B. Unfair Contract Terms Act
C. Sale of Goods Act
D. Unfair Trading Regulations
Question 6
The following diagram shows a production possibility frontier for a country with two goods, X and Y. If the country is currently producing at point A, and the government imposes a tax on good X, what will be the effect on the production of good Y?
A. The production of good Y will increase.
B. The production of good Y will decrease.
C. The production of good Y will remain unchanged.
D. The production of good Y will increase, but at a decreasing rate.
Question 7
A consumer has a budget constraint given by ( 2x + 3y = 12 ), where ( x ) and ( y ) are the quantities of two goods. If the consumer wants to maximize utility, which of the following is a necessary condition?
A. The consumer must spend all of their income.
B. The consumer must allocate their income between the two goods in a way that maximizes utility.
C. The consumer must allocate their income between the two goods in a way that minimizes cost.
D. The consumer must allocate their income between the two goods in a way that maximizes profit.
Question 8
The Consumer Protection Act of 1999 in Nigeria provides for the protection of consumers against unfair trade practices. Which of the following is a key provision of the Act?
A. The Act prohibits the sale of goods that are hazardous to health.
B. The Act requires businesses to provide clear and accurate information about their products and services.
C. The Act allows consumers to sue businesses for damages caused by unfair trade practices.
D. The Act requires consumers to pay for goods and services before receiving them.
Question 9
A company's income statement is given below. What is the company's net income?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 10
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied of that commodity will also increase. However, this increase in quantity supplied is not due to an increase in the quantity of resources used, but rather due to an increase in the efficiency with which the existing resources are used. What is the term for this increase in efficiency?
A. Economies of scale
B. Increasing returns to scale
C. Diminishing returns to scale
D. External economies
Question 11
A company is considering exporting its products to a foreign market. Which of the following is a key consideration in the decision-making process?
A. Market size and growth potential
B. Competitor analysis
C. Cultural and language differences
D. Taxes and tariffs
Question 12
A firm's revenue function is given by R = 2x^2 + 5x - 3, where x is the number of units sold. If the firm wants to maximize revenue, what is the optimal number of units to sell?
A. 1
B. 2
C. 3
D. 4
Question 13
A firm's production function is given by Q = 3L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm wants to increase output by 30% while keeping labor constant at 150 units, how much capital should it hire?
A. 225
B. 250
C. 275
D. 300
Question 14
A bank offers a 5-year fixed deposit account with an interest rate of 8% per annum compounded annually. If the principal amount is ₦100,000, what is the future value of the investment?
A. ₦163,918.19
B. ₦164,918.19
C. ₦165,918.19
D. ₦166,918.19
Question 15
A company's marketing strategy involves a 20% discount on all products for the first week of a new product launch. If the original price of the product is ₦500, what is the new price after the discount?
A. ₦400
B. ₦420
C. ₦450
D. ₦480

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