POST UTME FUTO 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's production function is given by Q = 2L^0.5 K^0.5. If the company wants to increase its output by 20% and the wage rate is ₦100 per hour, what is the minimum amount of capital it needs to invest?
A. ₦500
B. ₦1000
C. ₦2000
D. ₦5000
Question 2
A firm has the following revenue function: R(x)=3x^2+2x+1. If the firm produces x units of the product, what is the rate of change of revenue?
A. 6x+2
B. 4x+1
C. 8x+3
D. 10x+5
Question 3
A company's articles of association outline its management structure. Which of the following is a key feature of a company's articles of association?
A. The appointment of directors
B. The allocation of shares
C. The establishment of a board of directors
D. The definition of a shareholder's rights
Question 4
A firm's revenue function is given by R = 100x - 2x^2. If the firm wants to maximize its revenue, what is the optimal level of production?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 5
A company is considering exporting its products to a foreign market. Which of the following is a key consideration for the company?
A. The company's target market size and growth potential.
B. The company's production costs and pricing strategy.
C. The company's ability to adapt to local market conditions and regulations.
D. The company's decision to use a local distributor or establish a subsidiary.
Question 6
A firm's profit function is given by π = 100x - 2x^2 - 100 - 20L - 5K. If the firm wants to maximize its profits, what is the optimal level of production?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 7
A firm is considering two different distribution channels for a new product. Channel A involves a direct sales force, while Channel B involves a retail network. If the firm expects to sell 10,000 units, which channel should it choose?
A. Channel A
B. Channel B
C. Both channels are equally effective
D. Neither channel is effective
Question 8
A company's foreign trade involves exporting goods worth ₦1,000,000 to a foreign country. If the exchange rate is 1 USD = ₦200, how much is the export worth in USD?
A. ₦5,000
B. ₦10,000
C. ₦5,000
D. ₦10,000
Question 9
In a perfectly competitive market, what is the relationship between the price elasticity of demand and the firm's ability to influence the market price?
A. The firm can influence the market price if the price elasticity of demand is inelastic.
B. The firm cannot influence the market price if the price elasticity of demand is elastic.
C. The firm can influence the market price if the price elasticity of demand is unit elastic.
D. The firm cannot influence the market price if the price elasticity of demand is inelastic.
Question 10
A bank's cash reserve ratio is 20%. If the bank has a total deposit of ₦1,000,000, how much cash reserve does it need to maintain?
A. ₦200,000
B. ₦150,000
C. ₦250,000
D. ₦300,000
Question 11
A firm is considering expanding its production capacity to meet increasing demand. However, the expansion would require a significant investment in new equipment and labor. What is the opportunity cost of this expansion?
A. The opportunity cost is the cost of producing one more unit of the good.
B. The opportunity cost is the cost of producing the entire new capacity.
C. The opportunity cost is the cost of producing the entire new capacity plus the cost of producing one more unit.
D. The opportunity cost is the cost of producing the entire new capacity minus the cost of producing one more unit.
Question 12
A consumer protection agency has received a complaint about a company's unfair business practices. The agency has the power to investigate the company and impose penalties if necessary. What is the primary purpose of this agency?
A. To promote fair competition among businesses.
B. To protect consumers from unfair business practices.
C. To regulate the prices of goods and services.
D. To provide consumer education and awareness.
Question 13
A firm has the following cost function: C(x)=2x^2+3x+1. If the firm produces x units of the product, what is the marginal cost?
A. 4x+3
B. 2x+1
C. 6x+2
D. 8x+4
Question 14
A company's cost function is given by C = 100 + 20L + 5K. If the company wants to minimize its costs, what is the optimal level of production?
A. 10 units
B. 20 units
C. 30 units
D. 40 units
Question 15
A company's transport and communication system is designed to facilitate the movement of goods and information. Which of the following is a key benefit of this system?
A. Reduced transportation costs
B. Improved communication with suppliers
C. Enhanced customer service
D. Increased storage capacity

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