POST UTME SKYLINE UNIVERSITY 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer is faced with a choice between two goods: a smartphone and a laptop. The consumer's budget is ₦50,000. The smartphone costs ₦30,000, and the laptop costs ₦20,000. Using the concept of indifference curves, what is the consumer's optimal choice?
A. The consumer will choose the smartphone.
B. The consumer will choose the laptop.
C. The consumer will choose both the smartphone and the laptop.
D. The consumer will choose neither the smartphone nor the laptop.
Question 2
A business has a sole proprietorship structure and is considering expanding its operations to a new location. What is the primary advantage of this expansion?
A. Increased revenue
B. Improved brand recognition
C. Enhanced customer service
D. Reduced competition
Question 3
A company has a warehouse with a capacity to store 1000 units of goods. The company receives a shipment of 800 units of goods and wants to determine the optimal storage policy. The storage costs are given by the following equation: Storage Cost = (Number of Units Stored)^2 / 100 Using the concept of inventory management, derive the optimal storage policy for the company.
A. The company should store all 800 units of goods in the warehouse.
B. The company should store 600 units of goods in the warehouse and order 200 more units.
C. The company should store 400 units of goods in the warehouse and order 400 more units.
D. The company should store 200 units of goods in the warehouse and order 600 more units.
Question 4
A company's liability for a product recall can be determined by the doctrine of
A. Ultrahazardous Activity
B. Strict Liability
C. Negligence
D. Breach of Warranty
Question 5
A consumer protection agency has received a complaint from a customer who was sold a defective product. The product was sold for ₦50,000 and the customer is seeking a refund. If the agency determines that the product was indeed defective, what is the maximum amount that the seller can be ordered to pay?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 6
In a perfectly competitive market, the law of diminishing marginal utility leads to a decrease in the marginal revenue product of a firm's inputs. What is the consequence of this decrease on the firm's production?
A. The firm will increase its production to take advantage of the decrease in marginal revenue product.
B. The firm will decrease its production to minimize losses.
C. The firm will maintain its current production level, as the decrease in marginal revenue product is offset by the law of diminishing marginal utility.
D. The firm will increase its production to take advantage of the decrease in marginal revenue product, but only if the decrease is significant.
Question 7
In a just-in-time (JIT) inventory system, what is the primary goal of the reorder point?
A. To minimize inventory costs
B. To maximize inventory turnover
C. To ensure that inventory levels are always at a minimum
D. To reduce the risk of stockouts
Question 8
A bank's decision to grant a loan to a customer is influenced by the customer's credit score, which is a measure of their
A. Creditworthiness
B. Financial Stability
C. Debt-to-Income Ratio
D. Cash Flow
Question 9
A firm is considering two different modes of transportation for its goods: trucking and rail. The cost of trucking is 100 per unit, while the cost of rail is 80 per unit. If the firm wants to transport 100 units of goods, and it expects to save 20% on the cost of rail compared to trucking, how much will it save?
A. 200
B. 400
C. 600
D. 800
Question 10
A consumer protection law requires that all products sold in a particular market must have a minimum warranty period of 2 years. If a company sells a product with a warranty period of 1 year, and the consumer sues the company for breach of contract, what is the likely outcome?
A. The company will win the case
B. The consumer will win the case
C. The case will be dismissed
D. The case will be referred to a higher court
Question 11
A consumer has a budget constraint of ₦1,000 and a preference for two goods, A and B. The prices of the goods are ₦200 and ₦300, respectively. If the consumer's indifference curve is tangent to the budget line, what is the optimal quantity of good A?
A. 2 units
B. 3 units
C. 4 units
D. 5 units
Question 12
A sole trader, Mr. A, has a business that generates an average annual profit of ₦500,000. If he decides to incorporate his business, what will be the tax implications for him?
A. He will pay more taxes as a sole trader.
B. He will pay the same amount of taxes as a sole trader.
C. He will pay less taxes as a sole trader.
D. He will pay no taxes as a sole trader.
Question 13
A company has a warehouse with a capacity of 10,000 units. The company receives an order for 5,000 units. If the reorder point is set at 8,000 units, what is the probability that the warehouse will be depleted before the next shipment arrives?
A. 0.2
B. 0.5
C. 0.8
D. 0.9
Question 14
A company's liability for environmental damage can be determined by the doctrine of
A. Strict Liability
B. Negligence
C. Breach of Duty
D. Breach of Statutory Duty
Question 15
A consumer's right to a refund for a defective product is protected by the
A. Consumer Protection Act
B. Sales of Goods Act
C. Unfair Contract Terms Act
D. Unfair Trading Regulations

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