POST UTME LEAD CITY UNIVERSITY 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's marketing strategy involves creating a new product to target a specific market segment. Which of the following is a characteristic of a new product?
A. The product is already established in the market
B. The product is new to the market and targets a specific segment
C. The product is a variation of an existing product
D. The product is a replacement for an existing product
Question 2
A bank's cash reserve ratio is 20%. If the bank has ₦100,000 in cash reserves, how much can it lend out?
A. ₦400,000
B. ₦500,000
C. ₦600,000
D. ₦800,000
Question 3
The concept of comparative advantage is related to the idea that countries should specialize in producing goods for which they have a
A. Absolute advantage
B. Comparative advantage
C. Opportunity cost
D. Law of diminishing returns
Question 4
A company's warehouse is designed to store goods in a way that minimizes the risk of damage. Which of the following is a characteristic of a well-designed warehouse?
A. The warehouse is designed to store goods in a way that maximizes space
B. The warehouse is designed to store goods in a way that minimizes the risk of damage
C. The warehouse is designed to store goods in a way that reduces labor costs
D. The warehouse is designed to store goods in a way that increases inventory turnover
Question 5
A company has a production function given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is labor and K is capital. If the company wants to produce 100 units of output, how much labor should it hire if it has 16 units of capital?
A. 8 units
B. 16 units
C. 32 units
D. 64 units
Question 6
A company is considering the introduction of a new product line. The product has a high fixed cost of production, but the variable cost per unit is low. Which of the following is a correct description of the production cost structure?
A. The company has a high fixed cost and a low variable cost.
B. The company has a low fixed cost and a high variable cost.
C. The company has a high fixed cost and a high variable cost.
D. The company has a low fixed cost and a low variable cost.
Question 7
A company has two production lines, A and B, with production capacities of 1000 and 500 units respectively. Production line A has 800 units of stock, while production line B has 200 units. If the company wants to transfer 200 units from production line A to production line B, what is the maximum number of units that can be transferred?
A. 300
B. 400
C. 500
D. 600
Question 8
A company uses the just-in-time (JIT) inventory system. What is the primary advantage of this system?
A. Reduced inventory costs
B. Improved product quality
C. Increased production efficiency
D. Enhanced customer satisfaction
Question 9
The Central Bank of Nigeria (CBN) uses the monetary policy instrument of Open Market Operations (OMO) to regulate the money supply in the economy. Which of the following is a correct description of the OMO process?
A. The CBN sells government securities to commercial banks to reduce the money supply.
B. The CBN buys government securities from commercial banks to increase the money supply.
C. The CBN lends money to commercial banks to increase the money supply.
D. The CBN sells government securities to commercial banks to increase the money supply.
Question 10
A company has a 10% dividend yield on its shares. If the company's share price is ₦100, what is the dividend per share?
A. ₦10
B. ₦20
C. ₦30
D. ₦40
Question 11
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are increased by 10% and 20% respectively, what is the percentage change in output?
A. 5%
B. 10%
C. 15%
D. 20%
Question 12
The production function is a relationship between the quantity of inputs used in the production process and the quantity of output produced, which is typically represented by the equation
A. Q = f(L, K)
B. Q = L + K
C. Q = L - K
D. Q = L * K
Question 13
The diagram below shows the supply and demand curves for a particular good. If the price of the good increases, the quantity supplied will
A. Increase
B. Decrease
C. Remain the same
D. Move to the left
Question 14
A firm uses the following data to estimate the demand for its product: x = 2 + 3y. If the price of the product is 10, what is the quantity demanded?
A. 2
B. 3
C. 4
D. 5
Question 15
A company has two warehouses, A and B, with capacities of 1000 and 500 units respectively. Warehouse A has 800 units of stock, while warehouse B has 200 units. If the company wants to transfer 200 units from warehouse A to warehouse B, what is the maximum number of units that can be transferred?
A. 300
B. 400
C. 500
D. 600

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