POST UTME FUTO 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The Central Bank of Nigeria (CBN) uses the following monetary policy tools to control inflation. Which one is NOT a primary tool?
A. Open Market Operations (OMO)
B. Reserve Requirements
C. Credit Controls
D. Fiscal Policy
Question 2
The diagram below represents a perfectly competitive market.
A. True
B. False
C. It represents a monopoly
D. It represents an oligopoly
Question 3
The Consumer Protection Act of 1999 provides for the protection of consumers against unfair trade practices. Which of the following is a fundamental right of consumers under this Act?
A. The right to receive accurate and adequate information about goods and services.
B. The right to choose between different goods and services.
C. The right to be protected against unfair trade practices.
D. The right to receive compensation for any loss or damage suffered.
Question 4
A company has a warehouse with a capacity to store 10,000 units of a product. The company orders 8,000 units from a supplier and receives 5,000 units in the first shipment. If the supplier takes 3 days to deliver the remaining 3,000 units, and the company uses 200 units per day, what is the maximum number of days the company can delay receiving the remaining shipment without running out of stock?
A. 10 days
B. 12 days
C. 15 days
D. 18 days
Question 5
The concept of comparative advantage is relevant in international trade.
A. True
B. False
C. It is only relevant in absolute advantage
D. It is only relevant in absolute disadvantage
Question 6
An insurance company is offering a life insurance policy to a client. What is the primary benefit of the policy?
A. Tax-free benefits
B. Guaranteed returns
C. Protection against death
D. Investment growth
Question 7
A company has a production function given by Q = 2L^{0.5}K^{0.5} . If the company wants to produce 16 units of output, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, what is the minimum cost of production?
A. ₦800
B. ₦1200
C. ₦1600
D. ₦2400
Question 8
A marketing manager wants to promote a new product using social media. Which of the following social media platforms is most suitable for this purpose?
A. LinkedIn
B. Twitter
C. Facebook
D. Instagram
Question 9
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will
A. decrease
B. increase
C. remain constant
D. become irrelevant
Question 10
The concept of opportunity cost is relevant in both microeconomics and macroeconomics.
A. True
B. False
C. It is only relevant in microeconomics
D. It is only relevant in macroeconomics
Question 11
In a sole trader business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Easy to set up
C. Flexibility in decision-making
D. No tax benefits
Question 12
A firm's revenue is calculated by multiplying the price of a product by the quantity sold. What is the formula for revenue?
A. P x Q
B. P + Q
C. P - Q
D. P ÷ Q
Question 13
A company uses a just-in-time (JIT) inventory system. What is the primary benefit of this system?
A. Reduced inventory costs
B. Improved product quality
C. Increased flexibility in production
D. Enhanced customer service
Question 14
A country's balance of payments (BOP) accounts are in equilibrium when the current account is equal to the capital account. Explain how this equilibrium is achieved.
A. When the current account is equal to the capital account, the country's net foreign assets are zero.
B. When the current account is equal to the capital account, the country's exchange rate is fixed.
C. When the current account is equal to the capital account, the country's trade deficit is zero.
D. When the current account is equal to the capital account, the country's trade surplus is zero.
Question 15
A firm has a demand function given by P = 100 - 2Q . If the firm produces 20 units of output, what is the total revenue?
A. ₦1000
B. ₦1200
C. ₦1400
D. ₦1600

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