POST UTME FUTA 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor, and K is the capital. If the firm increases its labor by 20% and capital by 15%, what is the effect on the output?
A. Output increases by 10%
B. Output increases by 12%
C. Output increases by 15%
D. Output increases by 18%
Question 2
A consumer has purchased a product from a retailer, but the product has a manufacturing defect. The consumer has the right to claim damages under which of the following laws?
A. Sale of Goods Act
B. Consumer Protection Act
C. Contract Act
D. Tort Law
Question 3
The Central Bank of Nigeria (CBN) uses the following monetary policy tools to control inflation: interest rates, reserve requirements, and open market operations. However, the CBN has also been known to use a less conventional tool to control inflation. Which of the following is NOT a less conventional tool used by the CBN to control inflation?
A. Quantitative Easing
B. Forward Guidance
C. Price Controls
D. Fiscal Policy
Question 4
A consumer is considering purchasing a product from a company that has a history of producing high-quality products. Which of the following is a likely outcome of this purchase?
A. The consumer will be satisfied with the product
B. The consumer will experience a significant increase in costs
C. The consumer will encounter difficulties with the product's warranty
D. The consumer will be exposed to a higher risk of product failure
Question 5
The concept of 'caveat emptor' in consumer protection law is best described as:
A. A warning to consumers to be cautious when purchasing goods
B. A principle that holds sellers liable for defects in goods
C. A doctrine that requires consumers to inspect goods before purchase
D. A rule that prohibits sellers from making false claims about goods
Question 6
A company is considering outsourcing its manufacturing operations to a foreign country. Which of the following is a potential benefit of this decision?
A. Reduced labor costs
B. Increased market share
C. Improved product quality
D. Enhanced brand reputation
Question 7
A firm's cost function is given by C = 2L + 3K, where C is the cost, L is the labor, and K is the capital. If the firm increases its labor by 20% and capital by 15%, what is the effect on the cost?
A. Cost increases by 10%
B. Cost increases by 12%
C. Cost increases by 15%
D. Cost increases by 18%
Question 8
A company is required to keep a register of its members under the Companies and Allied Matters Act (CAMA) 2020. What is the purpose of this register?
A. To record the company's financial transactions
B. To record the company's share capital
C. To record the names and addresses of the company's members
D. To record the company's business activities
Question 9
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm increases its labor input from 4 to 9, and its capital input from 16 to 25, by how much does the quantity produced increase?
A. 10%
B. 20%
C. 30%
D. 40%
Question 10
A sole trader's business is considered a separate legal entity from its owner's personal assets. However, if the business incurs a debt, the owner's personal assets can be used to settle the debt. What is the name of this legal concept?
A. Piercing the Corporate Veil
B. Limited Liability
C. Separate Legal Entity
D. Personal Liability
Question 11
A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. Which of the following is a requirement for registration?
A. Obtaining a Tax Identification Number (TIN)
B. Obtaining a Business Name Registration Certificate
C. Obtaining a Certificate of Incorporation
D. Obtaining a Business Permit
Question 12
A consumer protection law requires businesses to provide a 30-day cooling-off period for customers to return products. What is the purpose of this law?
A. To protect consumers from defective products
B. To allow consumers to return products that do not fit
C. To give consumers time to think before making a purchase
D. To prevent businesses from selling products that are not in stock
Question 13
A consumer has a budget of ₦1000 and faces the following prices: Q1 = ₦200, Q2 = ₦300, Q3 = ₦400. If the consumer's income elasticity of demand for Q1 is 0.5, what is the income effect on the demand for Q2?
A. ₦50
B. ₦100
C. ₦200
D. ₦500
Question 14
A consumer has a utility function given by U = 2A + 3B, where U is the utility, A is the quantity of good A, and B is the quantity of good B. If the consumer spends all their budget on good A, what is the maximum utility they can achieve?
A. 10
B. 20
C. 30
D. 40
Question 15
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. If the market price increases, what happens to the quantity supplied?
A. The quantity supplied decreases
B. The quantity supplied increases
C. The quantity supplied remains the same
D. The quantity supplied is unaffected

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