POST UTME LEAD CITY UNIVERSITY 2019 Commerce | Objective

Are you preparing for POST UTME LEAD CITY UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
In a perfectly competitive market, the supply curve is determined by the marginal cost curve. What is the relationship between the marginal cost curve and the supply curve?
A. The marginal cost curve is always above the supply curve.
Correct B. The marginal cost curve is always below the supply curve.
C. The marginal cost curve is equal to the supply curve.
D. The marginal cost curve is parallel to the supply curve.

Correct Answer: B

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Question 2
A company is considering two different investment projects. Project A has a higher initial cost but generates higher returns over time. Project B has a lower initial cost but generates lower returns over time. Which project should the company choose?
Correct A. Project A
B. Project B
C. Both projects are equally good
D. Neither project is good

Correct Answer: A

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Question 3
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, how many units of labor (L) and capital (K) should it hire?
A. L = 4, K = 4
Correct B. L = 8, K = 2
C. L = 2, K = 8
D. L = 1, K = 16

Correct Answer: B

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Question 4
A firm's demand function is given by P = 100 - 2Q. If the firm wants to maximize its profit, how many units of output should it produce?
A. Q = 20
Correct B. Q = 30
C. Q = 40
D. Q = 50

Correct Answer: B

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Question 5
A firm's cost function is given by C = 2L + 3K. If the firm hires 4 units of labor and 6 units of capital, what is its total cost?
A. ₦30
B. ₦40
Correct C. ₦50
D. ₦60

Correct Answer: C

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Question 6
A firm specializes in producing and exporting a particular commodity. The production function is given by Q = 100L^0.4K^0.6, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm wants to produce 200 units of the commodity, and the wage rate is ₦100 per hour, while the rental rate is ₦50 per unit of capital, what is the minimum cost of production?
A. ₦12500
Correct B. ₦15000
C. ₦17500
D. ₦20000

Correct Answer: B

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Question 7
A firm imports a commodity from a foreign country. The terms of trade are given by the equation P = 100Q^(-0.2), where P is the price of the commodity in naira, and Q is the quantity imported in units. If the firm wants to import 1000 units of the commodity, what is the price of the commodity in naira?
A. ₦500
B. ₦600
Correct C. ₦700
D. ₦800

Correct Answer: C

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Question 8
A firm has a warehouse with a capacity of 1000 units. The firm receives a shipment of 500 units of a commodity. The firm wants to store the commodity in the warehouse. What is the maximum number of units that can be stored in the warehouse?
A. 500
B. 750
Correct C. 1000
D. 1250

Correct Answer: C

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Question 9
A firm has a warehouse with a capacity of 1000 units. The firm receives a shipment of 500 units of a commodity. The firm wants to store the commodity in the warehouse. What is the maximum number of units that can be stored in the warehouse?
A. 500
B. 750
Correct C. 1000
D. 1250

Correct Answer: C

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Question 10
A firm has a warehouse with a capacity of 1000 units. The firm receives a shipment of 500 units of a commodity. The firm wants to store the commodity in the warehouse. What is the maximum number of units that can be stored in the warehouse?
A. 500
B. 750
Correct C. 1000
D. 1250

Correct Answer: C

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Question 11
In a sole trader business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Unlimited liability
Correct C. Easy to set up
D. Tax benefits

Correct Answer: C

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Question 12
A company has a total of ₦1,500,000 in assets and ₦800,000 in liabilities. What is the company's equity?
A. ₦700,000
Correct B. ₦1,000,000
C. ₦1,500,000
D. ₦2,300,000

Correct Answer: B

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Question 13
A consumer protection agency has identified a company that has engaged in unfair business practices. What is the primary action the agency should take?
A. Issue a warning letter
B. File a lawsuit
C. Impose a fine
Correct D. Order the company to cease operations

Correct Answer: D

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Question 14
A company is considering expanding its operations to a new market. What is the primary factor the company should consider?
A. Market size
B. Market growth rate
Correct C. Competition
D. Government regulations

Correct Answer: C

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Question 15
A marketing manager is developing a new advertising campaign. What is the primary goal of the campaign?
A. To increase brand awareness
B. To generate leads
Correct C. To drive sales
D. To build customer loyalty

Correct Answer: C

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Question 16
A firm's marketing strategy is most likely to be influenced by its
A. production costs
Correct B. market demand
C. government regulations
D. firm's size

Correct Answer: B

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Question 17
A company's foreign trade policy is most likely to be influenced by its
A. domestic market
B. government regulations
Correct C. international trade agreements
D. firm's size

Correct Answer: C

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Question 18
A firm's warehousing and stock control system is most likely to be influenced by its
A. production costs
B. market demand
C. firm's size
Correct D. transportation costs

Correct Answer: D

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Question 19
A company's banking and financial institutions policy is most likely to be influenced by its
A. government regulations
B. market demand
C. firm's size
Correct D. interest rates

Correct Answer: D

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Question 20
A firm's introduction to commerce is most likely to be influenced by its
A. production costs
B. market demand
C. firm's size
Correct D. government regulations

Correct Answer: D

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Question 21
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. If the price of a commodity increases, what will happen to the quantity supplied?
A. The quantity supplied will decrease
Correct B. The quantity supplied will increase
C. The quantity supplied will remain the same
D. The quantity supplied will be unaffected

Correct Answer: B

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Question 22
A company's warehouse is designed to store 10,000 units of inventory. If the warehouse is currently 75% full, how many units of inventory can still be stored?
Correct A. 7,500
B. 8,000
C. 9,000
D. 10,000

Correct Answer: A

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Question 23
A firm's revenue function is given by R(x) = 100x - 2x^2. If the firm produces 20 units of output, what is the marginal revenue?
Correct A. 1,600
B. 1,800
C. 2,000
D. 2,200

Correct Answer: A

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Question 24
A company's transportation costs are given by the equation C(x) = 0.05x^2 + 10x. If the company transports 50 units of goods, what is the total transportation cost?
A. ₦2,500
Correct B. ₦2,750
C. ₦3,000
D. ₦3,250

Correct Answer: B

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Question 25
A firm's insurance premium is given by the equation P(x) = 0.01x^2 + 5x. If the firm's assets are worth ₦100,000, what is the insurance premium?
A. ₦10,500
B. ₦11,000
Correct C. ₦11,500
D. ₦12,000

Correct Answer: C

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