POST UTME CRAWFORD UNIVERSITY 2020 Commerce | Objective

Are you preparing for POST UTME CRAWFORD UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2020 Commerce (Objective) questions designed to simulate the real exam environment.

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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 this market?
A. ₦100, 100 units
Correct B. ₦120, 80 units
C. ₦150, 60 units
D. ₦180, 40 units

Correct Answer: B

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Question 2
A company's production function is given by Q = 2L^0.5K^0.5. If the company wants to produce 16 units of output, and the wage rate is ₦10 per hour, and the rental rate is ₦5 per unit of capital, what is the minimum cost of production?
A. ₦80
B. ₦100
Correct C. ₦120
D. ₦150

Correct Answer: C

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Question 3
A firm is considering two different production processes. Process A has a fixed cost of ₦100 and a variable cost of ₦5 per unit of output. Process B has a fixed cost of ₦150 and a variable cost of ₦3 per unit of output. If the firm produces 20 units of output, which process should it use?
Correct A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable

Correct Answer: A

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Question 4
A country's import demand function is given by M = 100 - 2P, where M is the quantity of imports and P is the price of imports. If the price of imports is ₦50, what is the quantity of imports?
A. 10 units
Correct B. 20 units
C. 30 units
D. 40 units

Correct Answer: B

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Question 5
A firm's revenue function is given by R = 100P^2, where R is the revenue and P is the price. If the price is ₦10, what is the revenue?
A. ₦100
Correct B. ₦200
C. ₦300
D. ₦400

Correct Answer: B

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Question 6
A firm's marketing strategy involves creating a unique selling proposition (USP) to differentiate its product from competitors. Which of the following is an example of a USP?
A. Lower price
B. Higher quality
Correct C. Unique design
D. Better customer service

Correct Answer: C

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Question 7
A company is considering exporting its product to a foreign market. Which of the following is a major advantage of exporting?
A. Increased competition
B. Reduced market share
Correct C. Access to new customers
D. Lower production costs

Correct Answer: C

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Question 8
A firm's risk management strategy involves diversifying its investments to minimize risk. Which of the following is an example of diversification?
A. Investing in a single stock
Correct B. Investing in a mix of stocks and bonds
C. Investing in a single industry
D. Investing in a single country

Correct Answer: B

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Question 9
A company is considering using a new transportation mode to reduce its logistics costs. Which of the following is a major advantage of using a new transportation mode?
A. Increased fuel efficiency
B. Reduced labor costs
Correct C. Improved delivery times
D. Increased capacity

Correct Answer: C

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Question 10
A firm's marketing strategy involves creating a brand identity to differentiate its product from competitors. Which of the following is an example of a brand identity?
A. Unique packaging
B. Distinctive logo
C. Consistent advertising
Correct D. All of the above

Correct Answer: D

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Question 11
A company's marketing strategy involves a mix of advertising, sales promotion, and public relations. Which of the following is NOT a characteristic of a successful marketing strategy?
A. Flexibility
B. Focus on a specific target market
Correct C. High production costs
D. High return on investment

Correct Answer: C

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Question 12
A firm's financial statements show a net income of ₦1.2 million, but the cash flow statement shows a net decrease of ₦500,000. What is the most likely explanation for this discrepancy?
A. Depreciation of assets
Correct B. Increase in accounts receivable
C. Increase in accounts payable
D. Decrease in inventory

Correct Answer: B

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Question 13
A consumer protection law requires businesses to provide a 30-day cooling-off period for customers to return products. Which of the following is a benefit of this law?
A. Increased sales
B. Reduced customer complaints
Correct C. Improved customer satisfaction
D. Higher production costs

Correct Answer: C

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Question 14
A company's warehousing and stock control system involves a first-in, first-out (FIFO) inventory management policy. What is the primary advantage of this policy?
A. Reduced inventory costs
Correct B. Improved inventory turnover
C. Increased storage capacity
D. Enhanced customer satisfaction

Correct Answer: B

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Question 15
A bank's financial statements show a return on equity (ROE) of 12%. What does this indicate about the bank's profitability?
Correct A. High profitability
B. Low profitability
C. Average profitability
D. Unsustainable profitability

Correct Answer: A

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Question 16
The concept of 'Gross Domestic Product' (GDP) is a measure of a nation's economic activity. Which of the following is NOT a component of GDP?
Correct A. Imports
B. Exports
C. Consumption
D. Investment

Correct Answer: A

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Question 17
A company's marketing strategy involves creating a brand identity. Which of the following is a key element of a brand identity?
A. Product features
B. Price
C. Packaging
Correct D. Logo

Correct Answer: D

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Question 18
A firm's production function is given by the equation Q = 2L^0.5K^0.5. If the firm's output is 100 units and the number of workers (L) is 25, what is the value of the capital stock (K)?
A. 25
B. 50
Correct C. 100
D. 200

Correct Answer: C

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Question 19
A company's financial statements show that its current ratio is 2:1. If the company's current assets are ₦500,000 and its current liabilities are ₦250,000, what is the company's quick ratio?
Correct A. 1.5
B. 2
C. 2.5
D. 3

Correct Answer: A

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Question 20
A firm's supply curve is given by the equation Q = 10 + 2P. If the price of the firm's product is ₦5, what is the quantity supplied?
A. 15
Correct B. 20
C. 25
D. 30

Correct Answer: B

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Question 21
A sole trader's business is considered a separate legal entity from its owner. This is an example of which of the following?
Correct A. Separate legal entity
B. Partnership
C. Limited liability
D. Joint venture

Correct Answer: A

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Question 22
The diagram below shows a simple circuit with a battery, a resistor, and a switch. If the switch is closed, what will be the effect on the current flowing through the circuit?
Correct A. The current will increase
B. The current will decrease
C. The current will remain the same
D. The current will be reversed

Correct Answer: A

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Question 23
A company's articles of association may provide for the appointment of a managing director. This is an example of which of the following?
A. Appointment of a director
B. Appointment of a secretary
Correct C. Appointment of a managing director
D. Appointment of a chairman

Correct Answer: C

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Question 24
The diagram below shows a simple graph of supply and demand. If the price of the good increases, what will be the effect on the quantity supplied?
Correct A. The quantity supplied will increase
B. The quantity supplied will decrease
C. The quantity supplied will remain the same
D. The quantity supplied will be reversed

Correct Answer: A

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Question 25
A sole trader's business is considered a separate legal entity from its owner. This is an example of which of the following?
Correct A. Separate legal entity
B. Partnership
C. Limited liability
D. Joint venture

Correct Answer: A

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