POST UTME RSU 2020 Commerce | Objective

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Question 1 View Details
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will
A. increase
Correct B. decrease
C. remain the same
D. move in the opposite direction

Correct Answer: B

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Question 2 View Details
A company has a warehouse with a capacity of 1000 units. If it receives an order for 500 units, what is the probability that the warehouse will be empty?
A. 0.5
Correct B. 0.25
C. 0.75
D. 0.1

Correct Answer: B

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Question 3 View Details
A firm produces two goods, A and B. The production function for good A is given by Q_A = 2L + 3K, where L is labor and K is capital. The production function for good B is given by Q_B = 4L + 2K. If the firm has 10 units of labor and 5 units of capital, what is the total output of the firm?
A. 30
B. 40
Correct C. 50
D. 60

Correct Answer: C

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Question 4 View Details
A consumer has a budget of ₦1000 and a preference for two goods, X and Y. The prices of the goods are ₦200 and ₦300 respectively. If the consumer spends all of their budget, what is the quantity of good X that the consumer will purchase?
A. 2
Correct B. 3
C. 4
D. 5

Correct Answer: B

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Question 5 View Details
A firm has a production function Q = 2L + 3K, where L is labor and K is capital. If the firm has 10 units of labor and 5 units of capital, what is the marginal product of labor?
Correct A. 2
B. 3
C. 4
D. 5

Correct Answer: A

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Question 6 View Details
In a just-in-time (JIT) inventory system, what is the primary goal of the warehouse manager?
A. To minimize inventory costs
B. To maximize storage capacity
Correct C. To reduce lead times
D. To increase inventory turnover

Correct Answer: C

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Question 7 View Details
A company is sued for breaching a consumer contract. Which of the following is a valid defense?
A. The company had a valid reason for breaching the contract
Correct B. The consumer was aware of the terms and conditions
C. The company had a change of heart
D. The consumer was not a party to the contract

Correct Answer: B

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Question 8 View Details
A sole trader has a business that generates an annual profit of ₦500,000. What is the trader's tax liability?
A. ₦100,000
Correct B. ₦200,000
C. ₦300,000
D. ₦400,000

Correct Answer: B

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Question 9 View Details
A company uses a just-in-time (JIT) inventory system. What is the primary benefit of this system?
A. Reduced inventory costs
B. Increased storage capacity
Correct C. Improved lead times
D. Enhanced customer satisfaction

Correct Answer: C

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Question 10 View Details
A consumer purchases a product with a price tag of ₦10,000. The consumer pays with a credit card that charges a 5% interest rate. What is the total amount paid by the consumer?
A. ₦10,500
B. ₦10,600
C. ₦10,700
Correct D. ₦10,800

Correct Answer: D

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Question 11 View Details
A company is considering two different production processes for its new product. Process A requires an initial investment of ₦1.5 million and has a variable cost of ₦200 per unit. Process B requires an initial investment of ₦1 million and has a variable cost of ₦300 per unit. If the selling price of the product is ₦500 per unit, what is the minimum number of units that must be produced and sold for Process A to be more profitable than Process B?
A. 1000 units
B. 1500 units
Correct C. 2000 units
D. 2500 units

Correct Answer: C

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Question 12 View Details
A firm is considering entering a new market. The market research indicates that the demand for the product is given by the equation Q = 1000 - 2P, where Q is the quantity demanded and P is the price. If the firm wants to maximize its profit, what should be the price of the product?
A. ₦200
B. ₦250
Correct C. ₦300
D. ₦350

Correct Answer: C

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Question 13 View Details
A company is considering exporting its product to a foreign market. The company's cost of production is ₦500 per unit, and the selling price in the foreign market is ₦700 per unit. If the exchange rate is 1 USD = 500 Naira, what is the company's profit per unit in USD?
A. ₦1.40
Correct B. ₦1.60
C. ₦1.80
D. ₦2.00

Correct Answer: B

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Question 14 View Details
A bank is considering offering a new loan product to its customers. The loan product has a fixed interest rate of 10% per annum and a fixed repayment period of 5 years. If the customer borrows ₦1 million, what is the total interest paid over the 5-year period?
A. ₦50,000
B. ₦60,000
C. ₦70,000
Correct D. ₦80,000

Correct Answer: D

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Question 15 View Details
A transportation company is considering investing in a new fleet of vehicles. The company's current fleet has a total value of ₦500 million and is expected to last for 5 years. The new fleet will have a total value of ₦750 million and is expected to last for 7 years. If the company expects to earn a return on investment of 10% per annum, what is the net present value of the new fleet compared to the current fleet?
A. ₦50 million
B. ₦75 million
Correct C. ₦100 million
D. ₦125 million

Correct Answer: C

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Question 16 View Details
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm's labor input increases by 20% and capital input remains constant, what is the percentage change in the quantity produced?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 17 View Details
A company is considering two marketing strategies: Strategy A, which involves a 10% increase in advertising expenditure, and Strategy B, which involves a 20% decrease in advertising expenditure. If the current advertising expenditure is ₦100,000, what is the total advertising expenditure for each strategy?
Correct A. ₦110,000
B. ₦90,000
C. ₦120,000
D. ₦80,000

Correct Answer: A

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Question 18 View Details
A firm's revenue function is given by R = 100Q - 2Q^2, where R is the revenue and Q is the quantity sold. If the firm sells 10 units, what is the marginal revenue?
Correct A. ₦800
B. ₦900
C. ₦1000
D. ₦1100

Correct Answer: A

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Question 19 View Details
A company is considering two production strategies: Strategy A, which involves producing 100 units of a product, and Strategy B, which involves producing 200 units of a product. If the fixed cost is ₦50,000 and the variable cost is ₦10 per unit, what is the total cost for each strategy?
Correct A. ₦1,050,000
B. ₦1,200,000
C. ₦1,350,000
D. ₦1,500,000

Correct Answer: A

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Question 20 View Details
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm wants to maximize revenue, what is the optimal price?
A. ₦20
Correct B. ₦30
C. ₦40
D. ₦50

Correct Answer: B

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Question 21 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 in this market?
A. ₦100, 1000 units
Correct B. ₦120, 800 units
C. ₦150, 600 units
D. ₦180, 400 units

Correct Answer: B

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Question 22 View Details
A company's production function is given by Q = 2L^0.5K^0.5. If the company wants to produce 400 units of output, and the wage rate is ₦100 per hour, what is the minimum cost of production?
A. ₦40,000
Correct B. ₦50,000
C. ₦60,000
D. ₦70,000

Correct Answer: B

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Question 23 View Details
A firm's demand function is given by P = 100 - 2Q. If the firm's marginal revenue function is MR = 200 - 4Q, what is the firm's optimal quantity?
A. 20 units
B. 30 units
Correct C. 40 units
D. 50 units

Correct Answer: C

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Question 24 View Details
A country's trade balance is given by TB = X - M, where X is the value of exports and M is the value of imports. If the country's exports are ₦100 billion and its imports are ₦120 billion, what is the trade balance?
A. ₦20 billion surplus
Correct B. ₦20 billion deficit
C. ₦40 billion surplus
D. ₦40 billion deficit

Correct Answer: B

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Question 25 View Details
A firm's production function is given by Q = 3L^0.5K^0.5. If the firm wants to produce 200 units of output, and the wage rate is ₦150 per hour, what is the minimum cost of production?
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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