POST UTME OAU 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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 150 units of cloth.
C. 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.
D. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 200 units of cloth.
Question 2
A company's financial statements include a balance sheet and an income statement. Which of the following is a key component of an income statement?
A. Revenue
B. Cost of goods sold
C. Gross profit
D. Net income
Question 3
A firm is considering two different production processes for a new product. Process A requires an initial investment of ₦10 million and produces 100 units per day, while Process B requires an initial investment of ₦5 million and produces 50 units per day. What is the opportunity cost of choosing Process A over Process B?
A. ₦5 million
B. ₦10 million
C. ₦15 million
D. ₦20 million
Question 4
A company's liability for a product defect is governed by the principles of which of the following laws?
A. Contract Law
B. Tort Law
C. Product Liability Law
D. Consumer Protection Law
Question 5
A consumer protection agency has the power to investigate complaints about unfair business practices. What is the primary purpose of this agency?
A. To protect consumers from unfair business practices and ensure fair competition.
B. To regulate business practices and ensure compliance with laws and regulations.
C. To investigate complaints about unfair business practices and take enforcement action.
D. To provide education and awareness about consumer rights and responsibilities.
Question 6
A bank offers a loan of ₦100,000 at an interest rate of 10% per annum compounded annually. If the loan is repaid after 5 years, what is the total amount paid by the borrower?
A. ₦163,922
B. ₦164,000
C. ₦164,100
D. ₦164,200
Question 7
A firm is considering two different production processes for a new product. Process A requires an initial investment of ₦10 million and produces 100 units per day, while Process B requires an initial investment of ₦5 million and produces 50 units per day. What is the opportunity cost of choosing Process B over Process A?
A. ₦5 million
B. ₦10 million
C. ₦15 million
D. ₦20 million
Question 8
A company has the following inventory levels: 100 units of product A, 200 units of product B, and 300 units of product C. If the company uses the First-In-First-Out (FIFO) method of inventory valuation, what is the total value of the inventory?
A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000
Question 9
A firm is considering two different production processes for a new product. Process A requires an initial investment of ₦10 million and produces 100 units per day, while Process B requires an initial investment of ₦5 million and produces 50 units per day. What is the opportunity cost of choosing Process A over Process B?
A. ₦5 million
B. ₦10 million
C. ₦15 million
D. ₦20 million
Question 10
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the amount of labor used, and K is the amount of capital used. If the firm uses 100 units of labor and 50 units of capital, what is the total product of labor?
A. 50
B. 100
C. 150
D. 200
Question 11
A consumer has purchased a product that has a defect. What is the primary responsibility of the consumer in this situation?
A. To report the defect to the manufacturer and request a replacement
B. To return the product to the store and request a refund
C. To contact the consumer protection agency and file a complaint
D. To ignore the defect and continue using the product
Question 12
A company's financial statements include a balance sheet and an income statement. Which of the following is a key component of a balance sheet?
A. Assets
B. Liabilities
C. Equity
D. Revenue
Question 13
A bank offers a loan of ₦100,000 at an interest rate of 10% per annum compounded annually. If the loan is repaid after 5 years, what is the total amount paid by the borrower?
A. ₦163,922
B. ₦164,000
C. ₦164,100
D. ₦164,200
Question 14
A bank's risk management strategy involves diversifying its investments across various asset classes. Which of the following asset classes would be most suitable for a bank's investment portfolio?
A. Government Bonds
B. Corporate Stocks
C. Real Estate
D. Commodities
Question 15
A company's insurance policy covers losses due to natural disasters. Which of the following types of insurance would be most suitable for the company?
A. Property Insurance
B. Liability Insurance
C. Business Interruption Insurance
D. Disaster Insurance

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