POST UTME FUTA 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's stock control system involves the use of a first-in-first-out (FIFO) inventory system. If the company has 100 units of a product in stock, and 20 units are sold, what is the new stock level?
A. 80 units
B. 90 units
C. 100 units
D. 120 units
Question 2
A bank's balance sheet is given by Assets = Liabilities + Equity. If the bank's assets are worth ₦100 million, and liabilities are ₦80 million, what is the bank's equity?
A. ₦10 million
B. ₦20 million
C. ₦30 million
D. ₦40 million
Question 3
A country's trade balance is given by Trade Balance = Exports - Imports. If the country's exports are ₦100 million and imports are ₦80 million, what is its trade balance?
A. ₦10 million
B. ₦20 million
C. ₦30 million
D. ₦40 million
Question 4
The diagram below shows a production possibility frontier (PPF) for two countries, Country A and Country B. Which of the following statements is true about the PPF?
A. The PPF shows the maximum possible output of good X that Country A can produce, given the resources available.
B. The PPF shows the maximum possible output of good Y that Country B can produce, given the resources available.
C. The PPF shows the opportunity cost of producing good X in Country A.
D. The PPF shows the opportunity cost of producing good Y in Country B.
Question 5
A consumer's budget constraint is given by 2x + 3y = 12. If the consumer's indifference curve is given by u(x, y) = 2x + y, what is the consumer's optimal consumption bundle?
A. (2, 4)
B. (4, 2)
C. (6, 0)
D. (0, 6)
Question 6
A company has a policy of paying its employees a bonus of 10% of their annual salary if they meet their performance targets. If an employee's annual salary is ₦500,000, what is the bonus they will receive?
A. ₦50,000
B. ₦55,000
C. ₦60,000
D. ₦65,000
Question 7
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. If the firm wants to produce 100 units of output, how many labor hours are required if the amount of capital is 400 units?
A. 100
B. 200
C. 400
D. 500
Question 8
A firm's insurance policy covers losses due to fire, theft, and natural disasters. The policy has a deductible of ₦100,000 and a premium of ₦500,000 per year. If the firm experiences a loss of ₦750,000 due to fire, what is the firm's net loss?
A. ₦250,000
B. ₦350,000
C. ₦450,000
D. ₦550,000
Question 9
A company's marketing strategy involves a mix of advertising, personal selling, and sales promotion. Which of the following is NOT a characteristic of advertising?
A. It is a form of non-personal communication
B. It is a one-way communication process
C. It is a form of personal communication
D. It is a form of sales promotion
Question 10
The diagram below shows a transportation network for a company. Which of the following is a correct statement about the transportation network?
A. The transportation network shows the most efficient route for transporting goods from one location to another.
B. The transportation network shows the least expensive route for transporting goods from one location to another.
C. The transportation network shows the fastest route for transporting goods from one location to another.
D. The transportation network shows the safest route for transporting goods from one location to another.
Question 11
A consumer's utility function is given by u(x, y) = 2x + y. If the consumer's budget constraint is given by 2x + 3y = 12, what is the consumer's optimal consumption bundle?
A. (2, 4)
B. (4, 2)
C. (6, 0)
D. (0, 6)
Question 12
In a perfectly competitive market, the law of supply states that the quantity supplied of a good increases as the price of the good increases, ceteris paribus. However, the law of supply also states that the quantity supplied of a good decreases as the price of the good decreases, ceteris paribus. Which of the following is a correct statement regarding the law of supply?
A. The law of supply is a fundamental concept in economics that explains the relationship between the price of a good and the quantity supplied of the good.
B. The law of supply is a concept that is only applicable in perfectly competitive markets.
C. The law of supply states that the quantity supplied of a good increases as the price of the good increases, ceteris paribus.
D. The law of supply states that the quantity supplied of a good decreases as the price of the good increases, ceteris paribus.
Question 13
A consumer has a budget constraint of 100 units of currency and a preference for two goods, A and B. The prices of the goods are 5 units of currency for good A and 10 units of currency for good B. Using the budget constraint and the prices of the goods, calculate the consumer's indifference curve.
A. The indifference curve is a straight line with a slope of -1.
B. The indifference curve is a straight line with a slope of 1.
C. The indifference curve is a curved line with a slope that increases as the quantity of good A increases.
D. The indifference curve is a curved line with a slope that decreases as the quantity of good A increases.
Question 14
A company's sole trader has a warehouse with a capacity to store 5000 units of goods. If the company's average daily sales are 50 units, and the daily stock replenishment is 200 units, what is the maximum number of days the warehouse can operate without replenishment?
A. 10 days
B. 15 days
C. 20 days
D. 25 days
Question 15
A bank's reserve requirement is 20%. If the bank's deposits are ₦100,000, what is the bank's required reserve?
A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000

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