POST UTME IMS U 2024 Commerce | Objective

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Question 1
A consumer has an income of ₦5,000 and buys two goods, A and B. The prices of the goods are ₦1,000 and ₦2,000, respectively. If the consumer's budget constraint is 5,000 = 1,000x + 2,000y, where x and y are the quantities of goods A and B consumed, respectively, what is the consumer's indifference curve?
A. ( 5,000 = 1,000x + 2,000y )
B. ( 5,000 = 2,000x + 1,000y )
C. ( 5,000 = 1,000x - 2,000y )
D. ( 5,000 = 2,000x - 1,000y )
Question 2
A company has two business units, A and B. Unit A has a profit of ₦100000 and a capital of ₦500000, while unit B has a profit of ₦80000 and a capital of ₦200000. If the company wants to maximize its total profit, what should it do?
A. Increase the capital of unit A
B. Increase the capital of unit B
C. Increase the profit of unit A
D. Increase the profit of unit B
Question 3
A company has the following balance sheet:
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 4
An insurance company offers a policy that covers losses due to natural disasters. Which of the following is a potential risk factor that may affect the policy's premiums?
A. Increased frequency of natural disasters in the area
B. Higher construction costs for buildings in the area
C. Increased demand for insurance policies due to rising property values
D. Lower reinsurance costs for the insurance company
Question 5
A consumer buys a product for ₦1,000 and sells it for ₦1,200. If the consumer's utility function is U(x) = 2x - 0.1x^2, where x is the quantity of the product consumed, what is the marginal utility of the product?
A. 2 - 0.2x
B. 2 + 0.2x
C. 2 - 0.1x
D. 2 + 0.1x
Question 6
A consumer protection agency receives a complaint about a company's unfair business practices. Which of the following is a potential remedy the agency may impose?
A. Order the company to cease and desist from the unfair practice
B. Impose a fine on the company for violating consumer protection laws
C. Require the company to provide restitution to affected consumers
D. Grant the company immunity from prosecution for the unfair practice
Question 7
A firm's production function is given by Q = 2L + 3K, where Q is output, L is labor, and K is capital. If the firm increases labor from 10 units to 15 units, and capital remains constant at 5 units, what is the new output level?
A. 35
B. 40
C. 45
D. 50
Question 8
The Central Bank of Nigeria (CBN) uses the following monetary policy tools to control inflation: quantitative easing, forward guidance, and reserve requirements. Which of the following is NOT a monetary policy tool used by the CBN?
A. Open Market Operations
B. Reserve Requirements
C. Forward Guidance
D. Quantitative Easing
Question 9
A firm's revenue function is given by R = 2Q + 3Q^2, where R is revenue and Q is output. If the firm produces 10 units of output, what is the revenue level?
A. ₦200
B. ₦300
C. ₦400
D. ₦500
Question 10
A company is considering the introduction of a new product line. The marketing manager has estimated that the product will generate an additional ₦1,500,000 in revenue per year. However, the production manager has estimated that the product will require an additional ₦750,000 in fixed costs per year. What is the net increase in profit per year?
A. ₦750,000
B. ₦1,250,000
C. ₦1,500,000
D. ₦2,000,000
Question 11
A company has the following transportation costs: ₦100 per unit for Product A, ₦150 per unit for Product B, and ₦200 per unit for Product C. If the company transports 100 units of Product A, 150 units of Product B, and 200 units of Product C, what is the total transportation cost?
A. ₦35,000
B. ₦45,000
C. ₦55,000
D. ₦65,000
Question 12
A sole trader has the following transactions for the month of January:
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 13
A company's marketing strategy includes the following elements: Market Research, Market Segmentation, and Target Marketing. Which of the following elements is NOT included in the marketing strategy?
A. Market Research
B. Market Segmentation
C. Target Marketing
D. Product Development
Question 14
A firm uses a first-in-first-out (FIFO) inventory system. What is the primary advantage of using FIFO?
A. Reduced inventory costs
B. Improved inventory turnover
C. Increased storage capacity
D. Enhanced product freshness
Question 15
A company is considering the introduction of a new product line. The marketing manager has estimated that the product will generate an additional ₦1,500,000 in revenue per year. However, the production manager has estimated that the product will require an additional ₦750,000 in fixed costs per year. What is the net increase in profit per year?
A. ₦750,000
B. ₦1,250,000
C. ₦1,500,000
D. ₦2,000,000

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