Practice post utme rhema university commerce 2024 Past Questions

Question 1

Under the Consumer Protection Act, what is the primary responsibility of a consumer in a dispute with a trader?

A. To prove that the trader was negligent

B. To prove that the trader was in breach of contract

Correct C. To prove that the trader was in breach of the Consumer Protection Act

D. To prove that the trader was not responsible for the damage

Correct Answer: C

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Question 2

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

Correct D. Reduced lead times

Correct Answer: D

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Question 3

A trader is accused of making false and misleading advertisements. What is the primary responsibility of the trader?

A. To prove that the advertisement was true

B. To prove that the advertisement was not misleading

C. To prove that the advertisement was not false

Correct D. To prove that the advertisement was not in breach of the Consumer Protection Act

Correct Answer: D

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Question 4

A company is considering exporting its products to a foreign country. What is the primary advantage of exporting?

A. Increased revenue

B. Improved market share

C. Reduced competition

Correct D. Increased market size

Correct Answer: D

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Question 5

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

Correct 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

Correct Answer: C

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Question 6

In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will

A. increase

Correct B. decrease

C. remain constant

D. shift to the left

Correct Answer: B

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Question 7

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

Correct C. 2,500 units

D. 3,000 units

Correct Answer: C

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Question 8

A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is the quantity produced, L is the number of labor units, and K is the number of capital units. If the firm has 16 labor units and 25 capital units, what is the maximum quantity it can produce?

A. 20 units

B. 30 units

Correct C. 40 units

D. 50 units

Correct Answer: C

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Question 9

A company is considering two different marketing strategies: Strategy A, which involves a 10% increase in advertising expenditure, and Strategy B, which involves a 20% decrease in advertising expenditure. If the company's current advertising expenditure is ₦500,000, which strategy will result in the greatest increase in sales?

Correct A. Strategy A

B. Strategy B

C. Both strategies will result in the same increase in sales

D. Neither strategy will result in an increase in sales

Correct Answer: A

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Question 10

A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm's marginal revenue function is MR = 200 - 4Q, what is the firm's optimal price?

A. ₦20

B. ₦30

Correct C. ₦40

D. ₦50

Correct Answer: C

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Question 11

In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will

A. increase

Correct B. decrease

C. remain constant

D. become perfectly inelastic

Correct Answer: B

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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%

Correct B. 10%

C. 15%

D. 20%

Correct Answer: B

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Question 13

A company is considering two different transportation modes to ship its products from a warehouse to a customer. Mode A costs 100 per unit and has a fixed cost of 5000, while Mode B costs 120 per unit and has a fixed cost of 3000. If the company ships 100 units, what is the total cost of shipping using Mode A?

Correct A. 15,000

B. 16,000

C. 17,000

D. 18,000

Correct Answer: A

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Question 14

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

Correct B. 80

C. 100

D. 120

Correct Answer: B

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Question 15

A company is considering two different production processes to manufacture a product. Process A has a fixed cost of 10,000 and a variable cost of 5 per unit, while Process B has a fixed cost of 15,000 and a variable cost of 3 per unit. If the company produces 1000 units, what is the total cost of production using Process A?

Correct A. 15,000

B. 16,000

C. 17,000

D. 18,000

Correct Answer: A

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Question 16

In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will __________.

Correct A. increase

B. decrease

C. remain constant

D. shift to the left

Correct Answer: A

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Question 17

A sole trader is a type of business organization that is owned and controlled by one person. What is the main advantage of being a sole trader?

A. Limited liability

B. Easy to set up

Correct C. Flexibility in decision-making

D. Access to capital

Correct Answer: C

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Question 18

A company is a type of business organization that is owned and controlled by shareholders. What is the main disadvantage of being a company?

A. Limited liability

B. Easy to set up

Correct C. Complexity in decision-making

D. Access to capital

Correct Answer: C

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Question 19

A consumer protection law is a type of law that protects consumers from unfair or deceptive business practices. What is the main purpose of consumer protection laws?

A. To promote competition

Correct B. To protect consumers from unfair business practices

C. To regulate business activities

D. To promote economic growth

Correct Answer: B

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Question 20

A marketing strategy is a plan of action designed to promote a product or service. What is the main goal of a marketing strategy?

Correct A. To increase sales

B. To promote the product or service

C. To build brand awareness

D. To reduce costs

Correct Answer: A

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Question 21

A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the units of labor, and K is the units of capital. If the company wants to increase its production by 20% while keeping labor constant, how much capital should it invest?

A. ₦1250

B. ₦2500

Correct C. ₦3750

D. ₦5000

Correct Answer: C

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Question 22

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?

Correct 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.

Correct Answer: A

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Question 23

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

Correct C. ₦125,000

D. ₦130,000

Correct Answer: C

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Question 24

A firm produces two goods, A and B, using two inputs, labor and capital. The production function for good A is given by Q_A = 2L^0.5K^0.5, and the production function for good B is given by Q_B = 3L^0.5K^0.5. If the firm wants to produce 10 units of good A and 15 units of good B, how much labor and capital should it invest?

A. L = 10, K = 20

B. L = 20, K = 10

Correct C. L = 15, K = 15

D. L = 25, K = 5

Correct Answer: C

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Question 25

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?

Correct 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.

Correct Answer: A

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