POST UTME REDEEMERS UNIVERSITY 2021 Commerce | Objective

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Question 1
A company has a warehouse with a capacity of 10,000 units. The company uses a first-in-first-out (FIFO) inventory system. If 5,000 units are sold in the first quarter and 3,000 units are sold in the second quarter, how many units are left in the warehouse?
Correct A. 7,000
B. 8,000
C. 9,000
D. 10,000

Correct Answer: A

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Question 2
A firm imports goods from a foreign country and incurs a transportation cost of 10% of the total value of the goods. If the total value of the goods is 100,000, what is the transportation cost?
A. 8,000
Correct B. 10,000
C. 12,000
D. 15,000

Correct Answer: B

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Question 3
A bank offers a 5-year fixed deposit account with an interest rate of 8% per annum compounded annually. If a customer deposits ₦100,000 at the beginning of the first year, how much will the customer have at the end of the fifth year?
Correct A. ₦163,922
B. ₦164,922
C. ₦165,922
D. ₦166,922

Correct Answer: A

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Question 4
A company has a warehouse with a capacity of 10,000 units. The company uses a last-in-first-out (LIFO) inventory system. If 5,000 units are sold in the first quarter and 3,000 units are sold in the second quarter, how many units are left in the warehouse?
A. 7,000
B. 8,000
Correct C. 9,000
D. 10,000

Correct Answer: C

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Question 5
A firm imports goods from a foreign country and incurs a transportation cost of 15% of the total value of the goods. If the total value of the goods is 120,000, what is the transportation cost?
A. 18,000
B. 20,000
Correct C. 22,000
D. 24,000

Correct Answer: C

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Question 6
The following diagram shows a typical example of a home trade transaction. What is the primary benefit of this type of transaction to the consumer?
A. Convenience
Correct B. Cost-effectiveness
C. Quality assurance
D. Flexibility

Correct Answer: B

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Question 7
A company's marketing strategy involves creating a brand image that is perceived as luxurious and exclusive. Which of the following marketing tools would be most effective in achieving this goal?
A. Social media advertising
B. Influencer marketing
Correct C. Event marketing
D. Content marketing

Correct Answer: C

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Question 8
A bank's cash reserve ratio is 10%. If the bank has a total deposit of ₦100,000, how much cash must it reserve?
Correct A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000

Correct Answer: A

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Question 9
A company's foreign trade transaction involves exporting goods worth 10,000 to a foreign country. If the exchange rate is 1 USD = 360 Naira, what is the equivalent value of the transaction in Naira?
Correct A. ₦3,600,000
B. ₦3,600,000
C. ₦3,600,000
D. ₦3,600,000

Correct Answer: A

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Question 10
A company's insurance policy has a deductible of ₦5,000. If the company suffers a loss of ₦20,000, how much will it receive from the insurance company?
Correct A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000

Correct Answer: A

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Question 11
In a multiple-line insurance policy, what is the primary purpose of the 'deductible' clause?
A. To reduce the premium paid by the policyholder
B. To increase the coverage limit of the policy
Correct C. To reduce the risk of loss for the insurer
D. To increase the risk of loss for the policyholder

Correct Answer: C

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Question 12
A company uses a just-in-time inventory system to manage its supply chain. What is the primary advantage of this system?
A. Reduced inventory costs
Correct B. Improved supply chain efficiency
C. Increased product quality
D. Enhanced customer satisfaction

Correct Answer: B

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Question 13
A consumer purchases a product online, but upon delivery, finds that it does not match the product description. What is the consumer's primary recourse?
A. Return the product and receive a full refund
B. Contact the seller and request a replacement
C. File a complaint with the consumer protection agency
Correct D. Seek mediation from a third-party dispute resolution service

Correct Answer: D

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Question 14
A company uses a viral marketing campaign to promote its new product. What is the primary goal of this campaign?
A. To increase brand awareness
Correct B. To generate buzz and excitement around the product
C. To drive sales and revenue
D. To collect customer feedback and data

Correct Answer: B

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Question 15
A company is considering a new marketing strategy that involves partnering with influencers on social media. What is the primary benefit of this strategy?
Correct A. Increased brand awareness and reach
B. Improved product credibility and trust
C. Enhanced customer engagement and interaction
D. Increased sales and revenue

Correct Answer: A

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Question 16
In a perfectly competitive market, the law of diminishing marginal utility implies that the demand curve for a firm's product is
A. a vertical line
B. a horizontal line
Correct C. a downward-sloping curve
D. an upward-sloping curve

Correct Answer: C

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Question 17
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
Correct B. 2
C. 3
D. 4

Correct Answer: B

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Question 18
A consumer has a utility function given by U = 2x + 3y. If the consumer's budget constraint is 2x + 3y = 12, what is the consumer's optimal consumption bundle?
Correct A. (2, 4)
B. (4, 2)
C. (6, 0)
D. (0, 6)

Correct Answer: A

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Question 19
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 firm's total cost?
A. 24
B. 30
Correct C. 36
D. 42

Correct Answer: C

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Question 20
A consumer has a budget of ₦1000 and a utility function given by U = 2x + 3y. If the prices of x and y are ₦2 and ₦3 respectively, what is the consumer's optimal consumption bundle?
Correct A. (200, 300)
B. (300, 200)
C. (400, 100)
D. (100, 400)

Correct Answer: A

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Question 21
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. Which of the following statements best describes the opportunity cost of a country?
Correct A. The value of the next best alternative
B. The quantity of another good that could be produced with the same resources
C. The price of another good that could be produced with the same resources
D. The quantity of another good that could be produced with the same resources and labor

Correct Answer: A

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Question 22
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is labor, and K is capital. If the firm increases labor from 100 to 121, and capital from 100 to 121, what is the percentage change in output?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 23
A company's marketing mix is given by the 4 Ps: Product, Price, Place, and Promotion. Which of the following is NOT one of the 4 Ps?
A. Product
B. Price
C. Place
Correct D. Profit

Correct Answer: D

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Question 24
A sole trader's business is given by the equation: Revenue = 100x - 2x^2, where x is the number of units sold. If the sole trader sells 10 units, what is the profit?
Correct A. ₦800
B. ₦900
C. ₦1000
D. ₦1100

Correct Answer: A

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Question 25
A company's production function is given by Q = 3L^0.5K^0.5, where Q is the quantity produced, L is labor, and K is capital. If the company increases labor from 100 to 121, and capital from 100 to 121, what is the percentage change in output?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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