POST UTME CRAWFORD UNIVERSITY 2021 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 2021 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is the quantity produced, L is labor and H is capital. If the firm wants to increase its output by 20% and labor is increased by 10%, what percentage increase in capital is required?
A. 5%
B. 10%
Correct C. 15%
D. 20%

Correct Answer: C

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Question 2
A company is considering two different marketing strategies: Strategy A and Strategy B. Strategy A involves a one-time investment of ₦100,000 and generates a revenue of ₦150,000 per year. Strategy B involves a one-time investment of ₦200,000 and generates a revenue of ₦250,000 per year. If the company wants to maximize its revenue, which strategy should it choose?
A. Strategy A
Correct B. Strategy B
C. Both strategies are equally profitable
D. Neither strategy is profitable

Correct Answer: B

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Question 3
A firm's supply function is given by Q = 2P + 10, where Q is the quantity supplied and P is the price. If the price increases by 10%, what is the new quantity supplied?
A. 20
B. 22
Correct C. 24
D. 26

Correct Answer: C

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Question 4
A company is considering two different warehouse locations: Location A and Location B. Location A is 10 km away from the factory and Location B is 15 km away from the factory. If the company wants to minimize its transportation costs, which location should it choose?
Correct A. Location A
B. Location B
C. Both locations are equally far
D. Neither location is far

Correct Answer: A

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Question 5
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the price increases by 20%, what is the new quantity demanded?
A. 80
B. 70
Correct C. 60
D. 50

Correct Answer: C

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Question 6
A sole trader's business is considered a separate legal entity from its owner. However, in the event of the owner's death, the business is automatically wound up. Which of the following is a correct statement regarding the sole trader's business?
Correct A. The business is dissolved and its assets are distributed among the creditors.
B. The business is transferred to the deceased's spouse.
C. The business is continued by the deceased's heirs.
D. The business is sold to a third party.

Correct Answer: A

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Question 7
A company's articles of association state that the company's shares are to be divided into two classes: ordinary and preference. The ordinary shares have a par value of ₦10 each, while the preference shares have a par value of ₦20 each. If the company issues 1,000 ordinary shares and 500 preference shares, what is the total par value of the issued shares?
A. ₦30,000
Correct B. ₦35,000
C. ₦40,000
D. ₦45,000

Correct Answer: B

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Question 8
A company's marketing strategy involves creating a new product line that targets a specific demographic. The company conducts market research and finds that the target demographic is willing to pay a premium price for the product. Which of the following is a correct statement regarding the company's marketing strategy?
A. The company is using a penetration pricing strategy.
B. The company is using a skimming pricing strategy.
Correct C. The company is using a value-based pricing strategy.
D. The company is using a cost-plus pricing strategy.

Correct Answer: C

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Question 9
A bank's balance sheet shows that its assets are ₦100 million, its liabilities are ₦80 million, and its equity is ₦20 million. If the bank's assets increase by 10% and its liabilities increase by 5%, what is the new equity?
A. ₦22,000,000
B. ₦23,000,000
Correct C. ₦24,000,000
D. ₦25,000,000

Correct Answer: C

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Question 10
A life insurance policy has a premium of ₦10,000 per year and a benefit of ₦500,000. If the policyholder dies after 5 years, what is the total benefit paid to the beneficiary?
A. ₦2,500,000
B. ₦2,750,000
Correct C. ₦3,000,000
D. ₦3,250,000

Correct Answer: C

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Question 11
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm wants to increase its output by 20% while keeping labor constant, what percentage increase in capital is required?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 12
A company has two production plants, A and B. Plant A produces 100 units of a product per day, while plant B produces 80 units per day. If the company wants to increase its total production by 20%, what is the minimum number of days it needs to operate plant B?
A. 5 days
Correct B. 6 days
C. 7 days
D. 8 days

Correct Answer: B

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Question 13
A firm's revenue function is given by R(x) = 2x^2 + 5x - 3, where x is the number of units sold. If the firm wants to maximize its revenue, what is the critical point of the function?
Correct A. (-5/4, 0)
B. (1/2, 0)
C. (5/4, 0)
D. (1, 0)

Correct Answer: A

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Question 14
A company has a portfolio of stocks with a mean return of 8% and a standard deviation of 12%. If the company wants to reduce its risk by 20%, what is the new standard deviation of the portfolio?
A. 6%
B. 8%
Correct C. 10%
D. 12%

Correct Answer: C

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Question 15
A firm's cost function is given by C(x) = 2x^2 + 5x - 3, where x is the number of units produced. If the firm wants to minimize its cost, what is the critical point of the function?
Correct A. (-5/4, 0)
B. (1/2, 0)
C. (5/4, 0)
D. (1, 0)

Correct Answer: A

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Question 16
A firm imports goods from a foreign country and sells them in the domestic market. The firm's revenue is ₦1,000,000, and the cost of importing the goods is ₦800,000. The firm also incurs a transportation cost of ₦50,000. What is the firm's profit?
Correct A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000

Correct Answer: A

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Question 17
A company has a warehouse with a capacity of 10,000 units. The company receives a shipment of 5,000 units and already has 3,000 units in stock. What is the total capacity of the warehouse?
A. 8,000
Correct B. 10,000
C. 12,000
D. 15,000

Correct Answer: B

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Question 18
A bank offers a 5% interest rate on a savings account. If a customer deposits ₦10,000, how much interest will the customer earn in one year?
Correct A. ₦500
B. ₦1,000
C. ₦2,000
D. ₦5,000

Correct Answer: A

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Question 19
A firm has a policy of paying its employees a bonus of 10% of their salary if they meet their targets. If an employee earns a salary of ₦50,000 and meets their targets, what is the bonus the employee will receive?
A. ₦5,000
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 20
A company has a warehouse with a capacity of 10,000 units. The company receives a shipment of 5,000 units and already has 3,000 units in stock. What is the total capacity of the warehouse?
A. 8,000
Correct B. 10,000
C. 12,000
D. 15,000

Correct Answer: B

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Question 21
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 commodity in such a market?
Correct A. ₦1000 and 100 units
B. ₦500 and 200 units
C. ₦2000 and 50 units
D. ₦1500 and 75 units

Correct Answer: A

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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 firm's output?
A. 12
B. 16
Correct C. 20
D. 24

Correct Answer: C

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Question 23
A firm's revenue function is given by R = 100Q - 2Q^2. If the firm's output is 6 units, what is the firm's revenue?
A. ₦480
Correct B. ₦520
C. ₦560
D. ₦600

Correct Answer: B

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Question 24
A firm's marginal revenue function is given by MR = 100 - 4Q. If the firm's output is 8 units, what is the firm's marginal revenue?
A. ₦60
B. ₦80
Correct C. ₦100
D. ₦120

Correct Answer: C

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Question 25
A firm's marginal cost function is given by MC = 2 + 0.5Q. If the firm's output is 10 units, what is the firm's marginal cost?
A. ₦6
B. ₦7
Correct C. ₦8
D. ₦9

Correct Answer: C

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