POST UTME CALEB UNIVERSITY 2024 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 2024 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is NOT a primary objective of advertising in this context?
A. To increase brand awareness
B. To persuade customers to buy the product
Correct C. To reduce production costs
D. To improve product quality

Correct Answer: C

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Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and if the firm's budget constraint is 100L + 200K = 10000, what is the optimal level of labor and capital that the firm should employ?
A. L = 100, K = 50
Correct B. L = 50, K = 100
C. L = 100, K = 100
D. L = 50, K = 50

Correct Answer: B

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Question 3
A company has two production plants, one in Lagos and the other in Abuja. The cost of producing one unit of a product in Lagos is ₦100, while the cost of producing one unit in Abuja is ₦120. If the company produces 100 units of the product, what is the minimum cost of production?
Correct A. ₦12000
B. ₦13000
C. ₦14000
D. ₦15000

Correct Answer: A

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Question 4
A firm's revenue function is given by R = 2Q^2 - 10Q + 5. If the firm's cost function is C = 5Q^2 + 10Q + 5, what is the profit-maximizing level of output?
A. Q = 1
Correct B. Q = 2
C. Q = 3
D. Q = 4

Correct Answer: B

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Question 5
A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is a primary objective of public relations in this context?
A. To increase brand awareness
B. To persuade customers to buy the product
Correct C. To improve the company's image
D. To reduce production costs

Correct Answer: C

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Question 6
A company's production function is given by Q = 100L^0.5K^0.5, where Q is output, L is labor, and K is capital. If labor increases by 20% and capital remains constant, what is the percentage change in output?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 7
A consumer has a utility function given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
Correct A. x = 100, y = 50
B. x = 80, y = 60
C. x = 70, y = 70
D. x = 60, y = 80

Correct Answer: A

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Question 8
A firm has a production function given by Q = 2L + 3K, where Q is output, L is labor, and K is capital. If labor increases by 20% and capital remains constant, what is the percentage change in output?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 9
A company's revenue function is given by R = 100x - 2x^2, where x is the quantity sold. If the company sells 50 units, what is its revenue?
A. ₦2500
Correct B. ₦3000
C. ₦3500
D. ₦4000

Correct Answer: B

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Question 10
A consumer has a utility function given by U = x + 2y, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
Correct A. x = 100, y = 50
B. x = 80, y = 60
C. x = 70, y = 70
D. x = 60, y = 80

Correct Answer: A

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Question 11
A company's warehousing and stock control system is designed to minimize inventory costs. Which of the following inventory control methods is most likely to be used?
Correct A. Just-in-Time (JIT) inventory control
B. Economic Order Quantity (EOQ) inventory control
C. Material Requirements Planning (MRP) inventory control
D. Total Quality Management (TQM) inventory control

Correct Answer: A

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Question 12
A consumer protection agency receives a complaint about a company's misleading advertising. Which of the following laws is most likely to be relevant?
Correct A. The Consumer Protection Act
B. The Advertising Standards Authority Act
C. The Trade Practices Act
D. The Competition and Consumer Protection Act

Correct Answer: A

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Question 13
A bank's financial statements show a significant increase in non-performing loans. Which of the following financial ratios is most likely to be affected?
A. Return on Assets (ROA)
B. Return on Equity (ROE)
Correct C. Debt-to-Equity Ratio
D. Current Ratio

Correct Answer: C

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Question 14
A company's home and foreign trade policies are designed to maximize its global market share. Which of the following trade policies is most likely to be used?
A. Protectionism
Correct B. Free Trade
C. Tariff
D. Quota

Correct Answer: B

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Question 15
A consumer protection agency receives a complaint about a company's unfair contract terms. Which of the following laws is most likely to be relevant?
A. The Consumer Protection Act
Correct B. The Unfair Contract Terms Act
C. The Trade Practices Act
D. The Competition and Consumer Protection Act

Correct Answer: B

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Question 16
A firm specializes in producing only one product. This specialization allows the firm to achieve economies of scale in production, which in turn enables it to reduce its costs and increase its efficiency. However, this specialization also limits the firm's ability to respond to changes in market demand. What is the name of this phenomenon?
A. Economies of scale
B. Diseconomies of scale
C. Limited diversification
Correct D. Inflexible production

Correct Answer: D

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Question 17
A bank's cash reserve ratio is 20%. If the bank has a total deposit of ₦10,000,000, how much cash must it reserve?
Correct A. ₦2,000,000
B. ₦1,500,000
C. ₦2,500,000
D. ₦3,000,000

Correct Answer: A

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Question 18
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the number of labor hours, and K is the amount of capital invested. If the firm wants to produce 100 units of output, how many labor hours are required if the amount of capital invested is ₦5,000?
A. 100 hours
Correct B. 200 hours
C. 500 hours
D. 1,000 hours

Correct Answer: B

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Question 19
A firm exports 100 units of a product to a foreign country. The product is sold at a price of 10 per unit. If the exchange rate is 1 USD = 500 Naira, what is the total value of the export in Naira?
Correct A. ₦1,000,000
B. ₦500,000
C. ₦1,500,000
D. ₦2,000,000

Correct Answer: A

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Question 20
A firm's transportation cost function is given by TC = 2Q + 10, where TC is the total transportation cost and Q is the quantity transported. If the firm wants to transport 100 units of output, what is the total transportation cost?
A. ₦2,000
Correct B. ₦3,000
C. ₦4,000
D. ₦5,000

Correct Answer: B

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Question 21
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing costs. What is the primary reason for this upward-sloping supply curve?
A. The law of increasing costs is due to the fixed nature of production costs.
B. The law of increasing costs is due to the variable nature of production costs.
Correct C. The law of increasing costs is due to the increasing marginal cost of production.
D. The law of increasing costs is due to the decreasing marginal revenue of production.

Correct Answer: C

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Question 22
A company is considering the introduction of a new product. The product has a high fixed cost, but a low variable cost. What type of market structure is this company operating in?
A. Perfect competition
Correct B. Monopoly
C. Monopolistic competition
D. Oligopoly

Correct Answer: B

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Question 23
A firm is considering the introduction of a new product. The product has a high fixed cost, but a low variable cost. What type of market structure is this firm operating in?
A. Perfect competition
Correct B. Monopoly
C. Monopolistic competition
D. Oligopoly

Correct Answer: B

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Question 24
A company is considering the introduction of a new product. The product has a high fixed cost, but a low variable cost. What type of market structure is this company operating in?
A. Perfect competition
Correct B. Monopoly
C. Monopolistic competition
D. Oligopoly

Correct Answer: B

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Question 25
A firm is considering the introduction of a new product. The product has a high fixed cost, but a low variable cost. What type of market structure is this firm operating in?
A. Perfect competition
Correct B. Monopoly
C. Monopolistic competition
D. Oligopoly

Correct Answer: B

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