POST UTME REDEEMERS UNIVERSITY 2017 Commerce | Objective

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Question 1
In a perfectly competitive market, the demand curve for a firm's product is its
Correct A. marginal revenue curve
B. marginal cost curve
C. average revenue curve
D. average cost curve

Correct Answer: A

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Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the price of labor is ₦10 per unit, and the price of capital is ₦20 per unit, how much should the firm spend on labor?
A. ₦80
Correct B. ₦160
C. ₦240
D. ₦320

Correct Answer: B

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Question 3
A consumer's indifference curve is given by the equation u(x,y) = 2x + 3y. If the consumer's income is ₦100, and the prices of good x and good y are ₦5 and ₦10 respectively, how many units of good y should the consumer buy?
A. 5
Correct B. 10
C. 15
D. 20

Correct Answer: B

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Question 4
A firm's cost function is given by C(L,K) = 2L + 3K. If the firm wants to minimize its cost, and the price of labor is ₦10 per unit, and the price of capital is ₦20 per unit, how many units of labor should the firm hire?
A. 10
Correct B. 20
C. 30
D. 40

Correct Answer: B

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Question 5
A consumer's budget constraint is given by the equation 2x + 3y = 100. If the consumer's income is ₦100, and the prices of good x and good y are ₦5 and ₦10 respectively, how many units of good x should the consumer buy?
A. 10
Correct B. 20
C. 30
D. 40

Correct Answer: B

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Question 6
A company's insurance policy has a deductible of ₦50,000 and a maximum payout of ₦1,000,000. If the company suffers a loss of ₦1,200,000, what is the amount the insurance company will pay?
A. ₦850,000
B. ₦950,000
Correct C. ₦1,050,000
D. ₦1,200,000

Correct Answer: C

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Question 7
A firm imports goods worth ₦5,000,000 and exports goods worth ₦3,000,000. What is the balance of trade?
Correct A. ₦2,000,000
B. ₦1,000,000
C. ₦500,000
D. ₦2,500,000

Correct Answer: A

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Question 8
A company's marketing strategy involves a 20% discount on all products. If a product originally costs ₦10,000, what is the discounted price?
Correct A. ₦8,000
B. ₦9,000
C. ₦10,000
D. ₦12,000

Correct Answer: A

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Question 9
A firm's stock control system involves a first-in-first-out (FIFO) inventory method. If the firm has 100 units of a product with a cost of ₦50 per unit, and 20 units are sold, what is the total cost of the units sold?
A. ₦1,000
B. ₦1,200
Correct C. ₦1,500
D. ₦2,000

Correct Answer: C

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Question 10
A company's insurance policy has a premium of ₦500,000 per year. If the company wants to pay the premium in 5 equal installments, what is the amount of each installment?
A. ₦100,000
Correct B. ₦125,000
C. ₦150,000
D. ₦200,000

Correct Answer: B

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Question 11
A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. Which of the following is a requirement for registration?
A. Obtaining a Tax Identification Number (TIN)
Correct B. Registering with the Corporate Affairs Commission (CAC)
C. Obtaining a Business Name Certificate
D. Obtaining a Trade License

Correct Answer: B

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Question 12
A consumer purchases a product from a retailer, but the product is defective. The consumer seeks redress under the Consumer Protection Act (CPA) 1999. Which of the following is a requirement for the consumer to succeed in their claim?
A. The consumer must prove that the product was used for its intended purpose
Correct B. The consumer must prove that the product was defective at the time of purchase
C. The consumer must prove that the retailer was negligent in the sale of the product
D. The consumer must prove that the product was not properly labeled

Correct Answer: B

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Question 13
A company is considering exporting its products to a foreign country. Which of the following is a key consideration in the company's decision-making process?
A. The company's profit margins
B. The company's market share in the foreign country
Correct C. The foreign country's trade policies and regulations
D. The company's ability to meet the foreign country's quality standards

Correct Answer: C

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Question 14
A bank is considering lending money to a customer. Which of the following is a key factor in the bank's decision-making process?
Correct A. The customer's credit history
B. The customer's income level
C. The customer's employment status
D. The customer's age

Correct Answer: A

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Question 15
An insurance company is considering insuring a customer's property. Which of the following is a key factor in the insurance company's decision-making process?
A. The customer's age
B. The customer's income level
C. The customer's employment status
Correct D. The customer's credit history

Correct Answer: D

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Question 16
A company's liability for a product defect is governed by the principle of _______ in the Consumer Protection Act.
Correct A. Strict Liability
B. Negligence
C. Breach of Contract
D. Unfair Trade Practices

Correct Answer: A

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Question 17
The _______ of a business refers to the process of identifying and evaluating potential risks and opportunities.
Correct A. Risk Management
B. Strategic Planning
C. Financial Analysis
D. Market Research

Correct Answer: A

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Question 18
A _______ is a type of insurance policy that provides financial protection against unforeseen events or circumstances.
A. Life Insurance
B. Health Insurance
C. Disability Insurance
Correct D. General Insurance

Correct Answer: D

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Question 19
The _______ of a trade agreement refers to the reduction or elimination of tariffs and other trade barriers.
A. Tariff
B. Quota
C. Non-Tariff Barrier
Correct D. Trade Liberalization

Correct Answer: D

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Question 20
A _______ is a type of financial institution that provides banking services to individuals and businesses.
Correct A. Commercial Bank
B. Investment Bank
C. Central Bank
D. Development Bank

Correct Answer: A

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Question 21
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 100 units of cloth, while Country B produces 50 units of wheat and 50 units of cloth.
Correct C. Country A produces 50 units of wheat and 100 units of cloth, while Country B produces 100 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 100 units of cloth.

Correct Answer: C

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Question 22
A firm's break-even point is the point at which its total revenue equals its total fixed costs. Which of the following is a correct formula for calculating the break-even point?
Correct A. BEQ = (FC x Q)/P
B. BEQ = (FC + VC) x Q/P
C. BEQ = (FC x P)/Q
D. BEQ = (FC + VC)/P x Q

Correct Answer: A

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Question 23
A company's marketing mix is a set of strategies that it uses to promote its products. Which of the following is a correct example of a marketing mix?
Correct A. Product, Price, Place, Promotion
B. Product, Price, Place, People
C. Product, Price, Place, Process
D. Product, Price, Place, Physical Evidence

Correct Answer: A

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Question 24
A firm's financial leverage is the ratio of its total debt to its total equity. Which of the following is a correct formula for calculating financial leverage?
Correct A. FL = (TD/TE)
B. FL = (TE/TD)
C. FL = (TD + TE)/TE
D. FL = (TD - TE)/TD

Correct Answer: A

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Question 25
A company's cash flow is the net amount of cash and cash equivalents that it generates from its operations. Which of the following is a correct example of a cash flow statement?
Correct A. Cash Flow Statement: Operating Activities, Investing Activities, Financing Activities
B. Cash Flow Statement: Operating Activities, Investing Activities, Cash and Cash Equivalents
C. Cash Flow Statement: Operating Activities, Financing Activities, Cash and Cash Equivalents
D. Cash Flow Statement: Investing Activities, Financing Activities, Cash and Cash Equivalents

Correct Answer: A

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