POST UTME VERITAS UNIVERSITY 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the equilibrium price and quantity of a product in such a market?
A. ₦100, 100 units
B. ₦120, 80 units
C. ₦150, 60 units
D. ₦180, 40 units
Question 2
A firm's revenue function is given by the equation ( R = 100Q - 2Q^2 ), where R is the total revenue and Q is the quantity sold. If the firm increases the price by 10%, what is the percentage change in the total revenue?
A. 5%
B. 10%
C. 15%
D. 20%
Question 3
A company is considering expanding its operations to a new market. Which of the following is a key consideration for the company?
A. The size of the market
B. The competition in the market
C. The regulatory environment
D. The cultural differences
Question 4
A bank is considering offering a new loan product to its customers. Which of the following is a key consideration for the bank?
A. The interest rate on the loan
B. The creditworthiness of the borrower
C. The risk of default on the loan
D. The fees associated with the loan
Question 5
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the firm's current output?
A. 24
B. 32
C. 40
D. 48
Question 6
A consumer is considering purchasing a product from a company. Which of the following is a key consideration for the consumer?
A. The price of the product
B. The quality of the product
C. The reputation of the company
D. The availability of the product
Question 7
A company has a policy of paying its employees a 10% bonus on their annual salary. If an employee earns ₦100,000 per annum, what is the bonus amount?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 8
A sole trader is considering expanding their business by opening a new branch. What is the main advantage of this strategy?
A. Increased revenue
B. Reduced costs
C. Improved brand recognition
D. Increased market share
Question 9
A company's cost function is given by the equation ( C = 100L + 200K ), where C is the total cost, L is the number of labor hours, and K is the capital invested. If the company increases labor hours by 20% and capital invested by 15%, what is the percentage change in the total cost?
A. 5%
B. 10%
C. 15%
D. 20%
Question 10
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital are fixed at 100 units each, what is the marginal product of capital?
A. 0.5
B. 1
C. 2
D. 4
Question 11
A company is considering exporting its products to a foreign market. Which of the following is a major advantage of exporting?
A. Increased market share
B. Reduced production costs
C. Access to new markets and customers
D. Improved product quality
Question 12
A company specializes in producing and marketing a single product. The production process involves several stages, including raw material procurement, manufacturing, packaging, and distribution. Which of the following is a characteristic of a sole trader?
A. A sole trader is a business owned and managed by one person.
B. A sole trader is a business owned and managed by two or more people.
C. A sole trader is a business owned and managed by a partnership of people.
D. A sole trader is a business owned and managed by a company.
Question 13
In a perfectly competitive market, the law of supply dictates that as the price of a commodity increases, the quantity supplied will
A. increase
B. decrease
C. remain constant
D. fluctuate
Question 14
A firm's revenue function is given by R = 2x^2 + 3x - 4. If the firm's current output is x = 2, what is the firm's current revenue?
A. 8
B. 10
C. 12
D. 14
Question 15
A company is considering launching a new product in a foreign market. Which of the following is a factor that the company should consider when making this decision?
A. The company's current market share
B. The company's production costs
C. The company's target market size
D. The company's marketing budget

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