POST UTME PAN-ATLANTIC UNIVERSITY 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's profit function is given by P(x) = R(x) - C(x), where R(x) is the revenue function and C(x) is the cost function. If the revenue function is R(x) = 2x^2 + 5x - 3 and the cost function is C(x) = 2x^2 + 5x - 3, what is the profit when x = 10?
A. 0
B. 10
C. 20
D. 30
Question 2
A consumer has purchased a product on hire-purchase terms. Which of the following is a key right of the consumer under the Hire-Purchase Act?
A. The right to terminate the agreement
B. The right to assign the agreement
C. The right to receive a refund of the deposit
D. The right to claim damages for breach of contract
Question 3
The 'principle of indemnity' in insurance means
A. the insurer must pay the full amount of the loss
B. the insurer must pay the actual cash value of the loss
C. the insurer must pay the market value of the loss
D. the insurer must pay the face value of the loss
Question 4
A company's financial statements show that its revenue increased by 15% and its expenses decreased by 10% compared to the previous year. What is the percentage increase in net profit?
A. 5%
B. 10%
C. 15%
D. 20%
Question 5
A company is considering two different trade agreements: a free trade agreement and a protectionist agreement. Which agreement is more likely to increase trade between countries?
A. Free Trade Agreement
B. Protectionist Agreement
C. Both agreements are equally effective
D. Neither agreement is effective
Question 6
A company's revenue function is given by R(x) = 2x^2 + 5x - 3, where x is the number of units sold. If the company sells 10 units, what is the marginal revenue?
A. 9
B. 10
C. 11
D. 12
Question 7
A company's memorandum of association can be amended by
A. a simple majority vote
B. a two-thirds majority vote
C. a unanimous vote
D. a vote by the board of directors
Question 8
A company is considering two different transportation modes: trucking and rail. Which mode is more likely to be used for transporting perishable goods?
A. Trucking
B. Rail
C. Both modes are equally effective
D. Neither mode is effective
Question 9
A firm's cost of capital is the minimum return that investors demand for their investment in the firm. Which of the following is NOT a component of a firm's cost of capital?
A. Debt financing
B. Equity financing
C. Preferred stock financing
D. Government grants
Question 10
A consumer's demand curve is downward sloping because of the law of diminishing marginal utility. What is the name of this law?
A. Law of Diminishing Marginal Utility
B. Law of Increasing Marginal Opportunity Cost
C. Law of Diminishing Returns
D. Law of Constant Opportunity Cost
Question 11
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm's labor and capital are increased by 20% and 15% respectively, what is the percentage change in output?
A. 5%
B. 10%
C. 15%
D. 20%
Question 12
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will also increase. However, this law assumes that the firm is a price-taker, meaning it has no control over the market price. What is the name of the market structure in which firms have some degree of control over the market price?
A. Monopoly
B. Oligopoly
C. Monopolistic Competition
D. Perfect Competition
Question 13
A company is considering two different marketing strategies: a product differentiation strategy and a market segmentation strategy. Which strategy is more likely to increase market share in the long run?
A. Product Differentiation
B. Market Segmentation
C. Both strategies are equally effective
D. Neither strategy is effective
Question 14
The concept of 'caveat emptor' in consumer protection means
A. let the buyer beware
B. let the seller beware
C. let the consumer beware
D. let the government beware
Question 15
The 'principle of insurable interest' in insurance means
A. the policyholder must have a financial interest in the insured asset
B. the policyholder must have a personal interest in the insured asset
C. the policyholder must have a legal interest in the insured asset
D. the policyholder must have a moral interest in the insured asset

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