POST UTME FUTO 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A bank's financial institution involves managing risk. What is the primary goal of risk management?
A. To maximize profits
B. To minimize losses
C. To maintain liquidity
D. To increase market share
Question 2
A consumer has a budget of ₦1000 and a demand function given by p = 2x - 1. What is the maximum quantity of the good that the consumer can buy?
A. 250
B. 300
C. 350
D. 400
Question 3
A company has a market share of 20% in a market with a total demand of 100 units. If the company increases its market share by 5%, what is the new market share?
A. 25%
B. 30%
C. 35%
D. 40%
Question 4
A company's marketing strategy involves creating a sense of urgency among customers to purchase a product. This strategy is an example of which of the following?
A. Scarcity
B. Limited-time offer
C. Price anchoring
D. Upselling
Question 5
A firm wants to determine the cost of producing a product. The cost function is given by C(x) = 2x^2 + 5x + 10, where x is the number of units produced. If the firm produces 10 units, what is the total cost?
A. ₦250
B. ₦300
C. ₦350
D. ₦400
Question 6
A bank's decision to provide a loan to a customer is influenced by the following factors EXCEPT:
A. Creditworthiness
B. Collateral
C. Interest Rate
D. Environmental Impact
Question 7
In a consumer protection context, what is the primary purpose of the Consumer Protection Act 1999?
A. To regulate consumer credit
B. To protect consumers from unfair trade practices
C. To promote consumer education
D. To establish consumer tribunals
Question 8
A company produces two products, X and Y. The production process for product X requires 2 hours of labor and 1 hour of machine time, while the production process for product Y requires 1 hour of labor and 2 hours of machine time. If the company has 8 hours of labor and 6 hours of machine time available, how many units of product X and product Y can be produced?
A. 10 units of X and 6 units of Y
B. 8 units of X and 4 units of Y
C. 6 units of X and 2 units of Y
D. 4 units of X and 8 units of Y
Question 9
A sole trader has a business income of ₦1,000,000 and expenses of ₦800,000. What is the sole trader's profit?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 10
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost. Which of the following is a correct example of comparative advantage?
A. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth.
B. Country A produces 100 units of wheat and 100 units of cloth, while Country B produces 50 units of wheat and 50 units of cloth.
C. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 150 units of cloth.
D. Country A produces 50 units of wheat and 100 units of cloth, while Country B produces 100 units of wheat and 50 units of cloth.
Question 11
A consumer protection agency wants to determine the average price of a product in a market. If the prices of 5 products are ₦100, ₦120, ₦150, ₦180, and ₦200, what is the average price?
A. ₦140
B. ₦150
C. ₦160
D. ₦170
Question 12
A production process is a series of activities involved in transforming raw materials into finished goods. Which of the following is a correct example of a production process?
A. Designing and developing new products.
B. Purchasing raw materials and components.
C. Manufacturing and assembling finished goods.
D. Marketing and selling finished goods to customers.
Question 13
A firm is considering two different production processes: one that produces 100 units of output per hour with a fixed cost of ₦10,000 and a variable cost of ₦5 per unit, and another that produces 200 units of output per hour with a fixed cost of ₦20,000 and a variable cost of ₦3 per unit. Which production process should the firm choose if it wants to minimize its average cost?
A. The first production process.
B. The second production process.
C. Both production processes have the same average cost.
D. Neither production process has the lowest average cost.
Question 14
A company is considering implementing a just-in-time inventory management system. Which of the following is a key benefit of this system?
A. Reduced inventory costs
B. Improved customer service
C. Increased efficiency
D. All of the above
Question 15
A company's revenue function is given by R(x) = 3x^2 - 2x + 1. What is the rate of change of revenue with respect to x when x = 1?
A. 5
B. 6
C. 7
D. 8

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