POST UTME CALEB UNIVERSITY 2022 Commerce | Objective

Are you preparing for POST UTME CALEB UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2022 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
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
Correct C. To ensure that stockouts do not occur
D. To reduce lead times

Correct Answer: C

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Question 2
A company has a warehouse with a capacity of 10,000 units. The current inventory level is 5,000 units. If the company receives a new shipment of 2,000 units, what is the new inventory level?
A. 5000
Correct B. 7000
C. 10000
D. 12000

Correct Answer: B

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Question 3
A consumer purchases a product for ₦10,000. The product is covered by a warranty that lasts for 2 years. If the product fails within the warranty period, the consumer can return it for a full refund. What is the expected value of perfect information for this consumer?
A. 0
Correct B. 1000
C. 5000
D. 10000

Correct Answer: B

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Question 4
A company has a policy of paying its suppliers within 30 days of receiving the invoice. If the company receives an invoice on January 1st and pays it on January 15th, what is the opportunity cost of this policy?
A. 0
Correct B. 1000
C. 5000
D. 10000

Correct Answer: B

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Question 5
A bank offers a 5-year fixed deposit account with an interest rate of 10% per annum compounded annually. If a customer deposits ₦10,000 at the beginning of the first year, what is the future value of the investment at the end of the fifth year?
Correct A. ₦16386.16
B. ₦16386.18
C. ₦16386.20
D. ₦16386.22

Correct Answer: A

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Question 6
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 compared to other countries. Which of the following is a correct example of comparative advantage?
A. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth.
Correct B. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 150 units of cloth.
C. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 150 units of wheat and 50 units of cloth.
D. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 50 units of cloth.

Correct Answer: B

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Question 7
A firm's break-even point is the point at which its total revenue equals its total fixed and variable costs. Which of the following is a correct formula for calculating the break-even point?
Correct A. Break-even point = Total Revenue / (Fixed Costs + Variable Costs)
B. Break-even point = (Fixed Costs + Variable Costs) / Total Revenue
C. Break-even point = Total Revenue - (Fixed Costs + Variable Costs)
D. Break-even point = (Fixed Costs - Variable Costs) / Total Revenue

Correct Answer: A

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Question 8
A marketing strategy that involves creating a product that is tailored to the specific needs of a particular market segment is known as?
A. Product differentiation
B. Market segmentation
Correct C. Target marketing
D. Positioning

Correct Answer: C

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Question 9
A firm's supply curve is upward-sloping, indicating that as the price of a good increases, the quantity supplied also increases. Which of the following is a correct explanation for this phenomenon?
Correct A. The firm is a price-taker and has no control over the price of the good.
B. The firm is a price-maker and has control over the price of the good.
C. The firm is a monopolist and has a downward-sloping demand curve.
D. The firm is a competitive firm and has a downward-sloping supply curve.

Correct Answer: A

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Question 10
A firm's demand curve is downward-sloping, indicating that as the price of a good decreases, the quantity demanded increases. Which of the following is a correct explanation for this phenomenon?
Correct A. The firm is a price-taker and has no control over the price of the good.
B. The firm is a price-maker and has control over the price of the good.
C. The firm is a monopolist and has a downward-sloping demand curve.
D. The firm is a competitive firm and has a downward-sloping supply curve.

Correct Answer: A

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Question 11
In a perfectly competitive market, the supply curve is downward sloping because of the law of increasing
Correct A. marginal opportunity cost
B. marginal utility
C. marginal propensity to consume
D. marginal rate of substitution

Correct Answer: A

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Question 12
A firm's revenue is maximized when the marginal revenue equals the
Correct A. marginal cost
B. marginal product
C. marginal utility
D. marginal propensity to consume

Correct Answer: A

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Question 13
The concept of opportunity cost is relevant in the context of
A. production decisions
B. consumption decisions
C. investment decisions
Correct D. all of the above

Correct Answer: D

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Question 14
The diagram below represents a perfectly competitive market equilibrium. What is the price of the good?
A. ₦100
Correct B. ₦120
C. ₦150
D. ₦180

Correct Answer: B

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Question 15
The diagram below represents a firm's marginal cost and marginal revenue curves. What is the profit-maximizing output level?
A. 10 units
Correct B. 20 units
C. 30 units
D. 40 units

Correct Answer: B

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Question 16
The Consumer Protection Act of 1999 provides for the protection of consumers from unfair trade practices. Which of the following is a fundamental principle of consumer protection?
A. The right to choose
B. The right to be informed
Correct C. The right to be protected
D. The right to be compensated

Correct Answer: C

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Question 17
A sole trader is a type of business ownership where one person owns and operates the business. 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 ownership where a group of people come together to form a business. 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 warehouse is a type of storage facility used to store goods. What is the main purpose of a warehouse?
A. To sell goods
B. To produce goods
Correct C. To store goods
D. To transport goods

Correct Answer: C

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Question 20
A stock control system is a type of inventory management system used to track and manage stock levels. What is the main benefit of using a stock control system?
A. To reduce stock levels
B. To increase stock levels
Correct C. To improve stock accuracy
D. To reduce costs

Correct Answer: C

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Question 21
The concept of 'opportunity cost' in economics refers to the value of the next best alternative foregone as a result of making a choice. Which of the following is an example of opportunity cost?
A. The cost of producing a good
B. The cost of not producing a good
Correct C. The value of the next best alternative foregone
D. The cost of a substitute good

Correct Answer: C

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Question 22
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are 4 and 9 respectively, what is the level of output?
A. 8
Correct B. 16
C. 32
D. 64

Correct Answer: B

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Question 23
A consumer's budget constraint is given by 2X + 3Y = 12. If the consumer's income is 12 and the price of good X is 2, what is the optimal level of good Y?
A. 2
Correct B. 4
C. 6
D. 8

Correct Answer: B

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Question 24
A firm's demand function is given by Q = 100 - 2P. If the firm's price is 20, what is the level of output?
A. 60
Correct B. 80
C. 100
D. 120

Correct Answer: B

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Question 25
A consumer's indifference curve is given by U = 2X + 3Y. If the consumer's income is 12 and the price of good X is 2, what is the optimal level of good Y?
A. 2
Correct B. 4
C. 6
D. 8

Correct Answer: B

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