POST UTME LAUTECH 2018 Commerce | Objective

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Question 1 View Details
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the equilibrium price and quantity of a product in this market?
Correct A. ₦100, 100 units
B. ₦200, 200 units
C. ₦50, 50 units
D. ₦150, 150 units

Correct Answer: A

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Question 2 View Details
A company 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%
Correct B. 10%
C. 15%
D. 20%

Correct Answer: B

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Question 3 View Details
A firm has a cost function C = 100 + 2L + 3K, where C is cost, L is labor, and K is capital. If labor increases by 10% and capital remains constant, what is the percentage change in cost?
A. 5%
Correct B. 10%
C. 15%
D. 20%

Correct Answer: B

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Question 4 View Details
A company has a revenue function R = 100Q - 2Q^2, where R is revenue and Q is output. What is the maximum revenue?
A. ₦1000
Correct B. ₦2000
C. ₦3000
D. ₦4000

Correct Answer: B

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Question 5 View Details
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%
Correct B. 10%
C. 15%
D. 20%

Correct Answer: B

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Question 6 View Details
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
Correct C. Enhanced flexibility and adaptability
D. Reduced storage capacity

Correct Answer: C

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Question 7 View Details
A consumer purchases a product online and is not satisfied with its quality. The consumer files a complaint with the company, but the company refuses to provide a refund or replacement. What type of law is applicable in this situation?
A. Contract law
B. Tort law
Correct C. Consumer protection law
D. Employment law

Correct Answer: C

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Question 8 View Details
A company uses a just-in-time (JIT) inventory system to manage its supply chain. What is the primary advantage of this system?
Correct A. Reduced inventory costs
B. Improved product quality
C. Enhanced flexibility and adaptability
D. Increased lead times

Correct Answer: A

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Question 9 View Details
A company is considering the use of a third-party logistics (3PL) provider to manage its transportation and warehousing needs. What are the primary benefits of using a 3PL provider?
A. Reduced transportation costs
B. Improved product quality
Correct C. Enhanced flexibility and adaptability
D. Increased lead times

Correct Answer: C

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Question 10 View Details
A company uses a total quality management (TQM) approach to manage its quality control processes. What is the primary goal of TQM?
A. Reduced costs
B. Improved product quality
Correct C. Enhanced customer satisfaction
D. Increased market share

Correct Answer: C

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Question 11 View Details
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.
Correct 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.

Correct Answer: B

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Question 12 View Details
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
Correct B. L = 50, K = 200
C. L = 200, K = 50
D. L = 100, K = 50

Correct Answer: B

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Question 13 View Details
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
Correct B. X = 3, Y = 2
C. X = 4, Y = 1
D. X = 1, Y = 4

Correct Answer: B

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Question 14 View Details
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
Correct B. ₦2500
C. ₦3000
D. ₦3500

Correct Answer: B

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Question 15 View Details
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, and the consumer is indifferent between the following two bundles, what is the price of good X?
A. ₦150
B. ₦200
Correct C. ₦250
D. ₦300

Correct Answer: C

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Question 16 View Details
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
Correct B. L = 50, K = 200
C. L = 200, K = 50
D. L = 100, K = 50

Correct Answer: B

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Question 17 View Details
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
Correct B. X = 3, Y = 2
C. X = 4, Y = 1
D. X = 1, Y = 4

Correct Answer: B

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Question 18 View Details
In a perfectly competitive market, the law of diminishing marginal utility implies that the demand curve for a firm's product is:
Correct A. A downward-sloping curve
B. A horizontal line
C. A vertical line
D. An upward-sloping curve

Correct Answer: A

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Question 19 View Details
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current inputs are L = 4 and K = 9, what is the marginal product of labor?
A. 1.5
Correct B. 2.5
C. 3.5
D. 4.5

Correct Answer: B

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Question 20 View Details
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
Correct B. 1
C. 2
D. 3

Correct Answer: B

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Question 21 View Details
A firm's cost function is given by C = 2L + 3K. If the firm's current inputs are L = 4 and K = 9, what is the total cost?
A. ₦18
B. ₦24
Correct C. ₦30
D. ₦36

Correct Answer: C

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Question 22 View Details
A consumer's budget constraint is given by P_x x + P_y y = I. If the consumer's current prices are P_x = ₦2 and P_y = ₦3, and the consumer's income is ₦12, what is the consumer's optimal bundle?
A. (2, 4)
Correct B. (3, 3)
C. (4, 2)
D. (5, 1)

Correct Answer: B

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Question 23 View Details
A firm specializes in producing a single product. Which of the following is a characteristic of specialization?
A. Increased production costs
B. Reduced production costs
C. Increased product variety
Correct D. Reduced product variety

Correct Answer: D

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Question 24 View Details
A company exports goods to a foreign country. What is the term for the process of exchanging goods or services for money?
A. Importation
B. Exportation
C. Trade
Correct D. Foreign exchange

Correct Answer: D

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Question 25 View Details
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
Correct C. Limited-time offer
D. Price elasticity

Correct Answer: C

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