POST UTME RHEMA UNIVERSITY 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer is considering purchasing a product that has a 30-day money-back guarantee. Which of the following is the most likely reason for the consumer to purchase the product?
A. The consumer is confident in the product's quality
B. The consumer is willing to take a risk on the product
C. The consumer is looking for a low-cost option
D. The consumer is seeking a flexible return policy
Question 2
A firm's cash flow statement shows a net increase in cash of ₦100,000. Which of the following is a correct interpretation of this information?
A. The firm has generated ₦100,000 in revenue
B. The firm has invested ₦100,000 in assets
C. The firm has paid ₦100,000 in dividends
D. The firm has increased its cash balance by ₦100,000
Question 3
A company's marketing mix is given by the 4 Ps: Product, Price, Place, and Promotion. If a company increases its advertising budget by 10% and reduces its product price by 5%, what is the overall effect on its marketing mix?
A. The company's marketing mix becomes more effective.
B. The company's marketing mix becomes less effective.
C. The company's marketing mix remains unchanged.
D. The company's marketing mix becomes more complex.
Question 4
A warehouse manager wants to store 1000 units of goods in a warehouse with a capacity of 5000 units. The manager wants to maximize storage space while minimizing the number of shelves required. Which of the following storage arrangements would achieve this goal?
A. Storing the goods in a single layer on the floor
B. Storing the goods in a single layer on shelves
C. Storing the goods in multiple layers on shelves
D. Storing the goods in a vertical stack
Question 5
A firm's cost function is given by C(L,K) = 2L + 3K, where C is cost, L is labor, and K is capital. If the firm wants to minimize cost while producing 100 units of output, and the wage rate is ₦10 per unit of labor and the rental rate is ₦5 per unit of capital, what is the optimal combination of labor and capital?
A. L = 10, K = 20
B. L = 20, K = 10
C. L = 30, K = 15
D. L = 15, K = 30
Question 6
A company is considering two different production processes for a new product. Process A requires an initial investment of ₦1,000,000 and generates a profit of ₦500,000 per year. Process B requires an initial investment of ₦500,000 and generates a profit of ₦750,000 per year. Which process should the company choose?
A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable
Question 7
A bank's liquidity ratio is a measure of its ability to meet its short-term obligations. If a bank has a liquidity ratio of 0.8, what does this imply about its ability to meet its short-term obligations?
A. The bank has sufficient liquid assets to meet its short-term obligations.
B. The bank has insufficient liquid assets to meet its short-term obligations.
C. The bank's liquidity ratio is irrelevant to its ability to meet its short-term obligations.
D. The bank's liquidity ratio is a measure of its profitability.
Question 8
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 statements best describes the opportunity cost of a country?
A. The value of the next best alternative
B. The quantity of the next best alternative
C. The price of the next best alternative
D. The quality of the next best alternative
Question 9
A firm's cost function is given by C = 2L + 3K. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in total cost?
A. 5%
B. 10%
C. 15%
D. 20%
Question 10
A company has a production capacity of 10,000 units per year. If the company operates at 80% capacity, how many units will it produce?
A. 8,000
B. 9,000
C. 10,000
D. 12,000
Question 11
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 5%
B. 10%
C. 15%
D. 20%
Question 12
The Consumer Protection Act of 1999 provides for the establishment of the National Consumer Protection Agency. What is the primary function of this agency?
A. To investigate consumer complaints and take enforcement action against erring businesses
B. To provide education and awareness programs for consumers on their rights and responsibilities
C. To regulate the activities of businesses and ensure compliance with consumer protection laws
D. To provide compensation to consumers who have suffered losses due to business malpractices
Question 13
A firm's production function is given by Q = 2L^0.4K^0.3, where Q is output, L is labor, and K is capital. If the firm wants to increase output by 20% while keeping labor constant, by what percentage should it increase capital?
A. 10%
B. 20%
C. 30%
D. 40%
Question 14
A firm produces 100 units of a product per day. If the production cost is ₦500 per unit, what is the total cost of production for a day?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 15
A consumer protection agency receives a complaint about a firm's unfair trade practices. Which of the following is the most appropriate action for the agency to take?
A. To investigate the complaint and take enforcement action
B. To mediate a settlement between the firm and the consumer
C. To dismiss the complaint as frivolous
D. To refer the complaint to a higher authority

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