POST UTME RHEMA UNIVERSITY 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm wants to increase revenue by 20%, what percentage increase in price is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 2
A company's break-even point is the point at which its total revenue equals its total cost. If a company's total fixed costs are ₦150,000 and its variable costs are ₦50 per unit, and it sells its product for ₦100 per unit, how many units must it sell to break even?
A. 1,500 units
B. 2,000 units
C. 2,500 units
D. 3,000 units
Question 3
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 ₦1,500, what is the new price after the discount?
A. ₦1,200
B. ₦1,500
C. ₦1,800
D. ₦2,000
Question 4
A firm's revenue function is given by R(x) = 2x^2 + 3x - 5. If the firm's current price and quantity sold are x = 5 and p = 10, respectively, what is the firm's current revenue?
A. 50
B. 60
C. 70
D. 80
Question 5
A company is considering two marketing strategies. Strategy A involves a 10% increase in advertising expenditure, which is expected to increase sales by 5%. Strategy B involves a 20% increase in sales force, which is expected to increase sales by 10%. Which strategy has a higher return on investment?
A. Strategy A
B. Strategy B
C. Both strategies have the same return on investment
D. Neither strategy has a higher return on investment
Question 6
The concept of 'Gresham's Law' in economics states that bad money drives out good money. Which of the following best describes the underlying principle?
A. The law of supply and demand
B. The law of diminishing marginal utility
C. The law of increasing opportunity cost
D. The law of comparative advantage
Question 7
A company is considering implementing a just-in-time inventory system. What is the primary advantage of this system?
A. Reduced inventory costs
B. Improved customer satisfaction
C. Increased efficiency in production
D. Reduced lead times
Question 8
A firm's demand function is given by Q = 100 - 2P. If the firm's price is increased by 20%, what is the new quantity demanded?
A. 60
B. 80
C. 100
D. 120
Question 9
A company's marketing strategy involves creating a new product line to target a specific demographic. Which of the following marketing mix elements is most relevant to this strategy?
A. Product
B. Price
C. Promotion
D. Place
Question 10
A sole trader's business is registered under the sole trader's name. What is the primary advantage of this business structure?
A. Easy to set up
B. Limited liability
C. Tax benefits
D. Flexibility
Question 11
A consumer protection law requires that all products sold in a particular market must have a minimum shelf life of 12 months. A company produces a product with a shelf life of 10 months. What is the company's liability under this law?
A. The company is liable for any damages caused by the product.
B. The company is not liable as the product meets the minimum shelf life requirement.
C. The company is liable for a fine of ₦1000.
D. The company is liable for a fine of ₦5000.
Question 12
A firm's production function is given by Q = 2L^(1/2)K^(1/2). 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 13
A company exports goods worth ₦100,000 to a foreign country. The foreign country imposes a tariff of 15% on the imported goods. What is the total amount paid by the company to the foreign country?
A. ₦115,000
B. ₦120,000
C. ₦125,000
D. ₦130,000
Question 14
A trader is accused of unfair trading practices. What is the primary responsibility of the trader?
A. To prove that the practice was fair
B. To prove that the practice was not unfair
C. To prove that the practice was not in breach of the Consumer Protection Act
D. To prove that the practice was not in breach of the Fair Trading Act
Question 15
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will
A. increase
B. decrease
C. remain constant
D. shift to the left

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