POST UTME LAUTECH 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer has a budget of ₦1000 and wants to buy two goods, X and Y. The prices of the goods are ₦200 and ₦300 respectively. If the consumer's indifference curve is given by U = 2X^0.5Y^0.5, what is the optimal combination of X and Y?
A. X = 2, Y = 3
B. X = 3, Y = 2
C. X = 4, Y = 1
D. X = 1, Y = 4
Question 2
A consumer has a budget of ₦1000 and wants to buy two goods, X and Y. The prices of the goods are ₦200 and ₦300 respectively. If the consumer's indifference curve is given by U = 2X^0.5Y^0.5, what is the optimal combination of X and Y?
A. X = 2, Y = 3
B. X = 3, Y = 2
C. X = 4, Y = 1
D. X = 1, Y = 4
Question 3
A company's marketing mix is a combination of four elements: product, price, promotion, and place. Which of the following is NOT a characteristic of a product?
A. It is a tangible good.
B. It is a service.
C. It is a necessary good.
D. It is a luxury good.
Question 4
A marketing strategy involves creating a sense of urgency to encourage customers to make a purchase. What is the term for this strategy?
A. Scarcity
B. Perceived value
C. Limited-time offer
D. Price elasticity
Question 5
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 wants to produce 100 units of output, and the wage rate is ₦100 per hour, and the rental rate of capital is ₦50 per hour, what is the minimum cost?
A. ₦2000
B. ₦2500
C. ₦3000
D. ₦3500
Question 6
A consumer's indifference curve is given by U = 2x + 3y. If the consumer's current consumption is (x, y) = (2, 3), what is the marginal rate of substitution?
A. 1/2
B. 1
C. 2
D. 3
Question 7
A warehouse's primary function is to store goods. Which of the following is a key feature of a warehouse's layout?
A. A single aisle with shelving on both sides.
B. A double aisle with shelving on one side.
C. A mezzanine floor with shelving below.
D. A racking system with pallets on the floor.
Question 8
In a perfectly competitive market, the law of diminishing marginal utility implies that the demand curve for a firm's product is:
A. A downward-sloping curve
B. A horizontal line
C. A vertical line
D. An upward-sloping curve
Question 9
A company is considering two different warehouse layouts for its new distribution center. Layout A is a traditional linear layout with a high degree of automation, while Layout B is a more flexible and adaptable layout with a lower degree of automation. Which of the following is a potential advantage of Layout B?
A. Increased labor costs
B. Improved product quality
C. Enhanced flexibility and adaptability
D. Reduced storage capacity
Question 10
A bank's primary function is to act as a financial intermediary. Which of the following is a key service provided by a bank?
A. Accepting deposits from the public.
B. Providing loans to customers.
C. Investing in government securities.
D. Acting as a financial advisor.
Question 11
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 wants to produce 100 units of output, and the wage rate is ₦100 per hour, and the rental rate of capital is ₦50 per hour, what is the optimal combination of labor and capital?
A. L = 100, K = 100
B. L = 50, K = 200
C. L = 200, K = 50
D. L = 100, K = 50
Question 12
A company is considering two different production processes. Process A involves a fixed cost of ₦50,000 and a variable cost of ₦100 per unit, while Process B involves a fixed cost of ₦30,000 and a variable cost of ₦150 per unit. If the company expects to produce 100 units of product, which process will result in lower total cost?
A. Process A
B. Process B
C. Both processes will result in the same total cost
D. Neither process will result in lower total cost
Question 13
A firm has a production function Q = 2L^0.4K^0.6, where Q is output, L is labor, and K is capital. If labor increases by 10% and capital remains constant, what is the percentage change in output?
A. 5%
B. 10%
C. 15%
D. 20%
Question 14
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the price of labor is ₦100 per unit, while the price of capital is ₦200 per unit, what is the minimum cost of production?
A. ₦400
B. ₦800
C. ₦1200
D. ₦1600
Question 15
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 compared to other countries. Which of the following is a correct example of comparative advantage?
A. Country A produces 10 units of wheat and 5 units of cloth, while Country B produces 5 units of wheat and 10 units of cloth.
B. Country A produces 10 units of wheat and 5 units of cloth, while Country B produces 15 units of wheat and 5 units of cloth.
C. Country A produces 10 units of wheat and 5 units of cloth, while Country B produces 5 units of wheat and 15 units of cloth.
D. Country A produces 10 units of wheat and 5 units of cloth, while Country B produces 10 units of wheat and 10 units of cloth.

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