Practice Post UTME RSU commerce 2023 Past Questions

Question 1

In a perfectly competitive market, the supply curve is perfectly elastic. What is the implication of this for the firm's ability to influence the market price?

A. The firm can influence the market price by adjusting its output.

Correct B. The firm cannot influence the market price, as the supply curve is perfectly elastic.

C. The firm can influence the market price by adjusting its input costs.

D. The firm can influence the market price by adjusting its advertising efforts.

Correct Answer: B

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Question 2

A firm is considering expanding its production capacity. If the marginal cost of production is greater than the marginal revenue, what is the likely outcome for the firm's profit?

A. The firm's profit will increase.

Correct B. The firm's profit will decrease.

C. The firm's profit will remain unchanged.

D. The firm's profit will be unaffected by the expansion.

Correct Answer: B

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Question 3

A company is considering entering a new market. If the market is characterized by a high level of product differentiation, what is the likely outcome for the company's market share?

Correct A. The company's market share will increase.

B. The company's market share will decrease.

C. The company's market share will remain unchanged.

D. The company's market share will be unaffected by the product differentiation.

Correct Answer: A

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Question 4

A firm is considering adopting a new production technology. If the new technology has a higher fixed cost but a lower variable cost, what is the likely outcome for the firm's average cost?

A. The firm's average cost will increase.

Correct B. The firm's average cost will decrease.

C. The firm's average cost will remain unchanged.

D. The firm's average cost will be unaffected by the new technology.

Correct Answer: B

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Question 5

A company is considering launching a new product. If the product has a high level of brand loyalty, what is the likely outcome for the company's market share?

Correct A. The company's market share will increase.

B. The company's market share will decrease.

C. The company's market share will remain unchanged.

D. The company's market share will be unaffected by the brand loyalty.

Correct Answer: A

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Question 6

A firm specializes in producing a single product, which it sells in a competitive market. The firm's production function is given by Q = 100L^(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 and capital inputs are 16 and 25, respectively, what is the quantity produced?

Correct A. 100

B. 80

C. 120

D. 140

Correct Answer: A

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Question 7

A company is considering two different marketing strategies for its new product. Strategy A involves a high level of advertising and promotion, while Strategy B involves a low level of advertising and promotion. The company's marketing manager estimates that Strategy A will result in a 20% increase in sales, while Strategy B will result in a 10% increase in sales. If the company's current sales are ₦100 million, what is the expected increase in sales under Strategy A?

Correct A. ₦20 million

B. ₦10 million

C. ₦30 million

D. ₦40 million

Correct Answer: A

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Question 8

A consumer protection agency has received a complaint from a consumer who purchased a product that was not as described. The agency has investigated the complaint and found that the product was indeed not as described. The agency has ordered the seller to refund the consumer's money and to pay a fine of ₦50,000. If the consumer had paid ₦100,000 for the product, what is the total amount that the seller must pay?

Correct A. ₦150,000

B. ₦120,000

C. ₦110,000

D. ₦130,000

Correct Answer: A

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Question 9

A firm is considering the use of a warehouse to store its products. The firm's production function is given by Q = 100L^(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 and capital inputs are 16 and 25, respectively, what is the quantity produced?

Correct A. 100

B. 80

C. 120

D. 140

Correct Answer: A

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Question 10

A company is considering two different marketing strategies for its new product. Strategy A involves a high level of advertising and promotion, while Strategy B involves a low level of advertising and promotion. The company's marketing manager estimates that Strategy A will result in a 20% increase in sales, while Strategy B will result in a 10% increase in sales. If the company's current sales are ₦100 million, what is the expected increase in sales under Strategy B?

A. ₦10 million

Correct B. ₦20 million

C. ₦30 million

D. ₦40 million

Correct Answer: B

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Question 11

A company is considering launching a new product line. The product's expected profit is ₦1.5 million, and the expected cost of production is ₦1.2 million. However, the company also expects to incur a marketing expense of ₦200,000. What is the expected profit of the product line?

Correct A. ₦300,000

B. ₦400,000

C. ₦500,000

D. ₦600,000

Correct Answer: A

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Question 12

A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm increases its labor input from 16 to 25, and its capital input from 9 to 16, what is the percentage change in the quantity produced?

A. 10%

B. 20%

Correct C. 30%

D. 40%

Correct Answer: C

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Question 13

A consumer has a budget constraint of ₦1,000 and a preference ordering of goods A and B as follows: A > B. The prices of goods A and B are ₦500 and ₦300, respectively. If the consumer spends all of their budget, how many units of good A will they purchase?

A. 1 unit

Correct B. 2 units

C. 3 units

D. 4 units

Correct Answer: B

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Question 14

A firm is considering two different production technologies: technology A and technology B. Technology A has a fixed cost of ₦100,000 and a variable cost of ₦200 per unit produced. Technology B has a fixed cost of ₦150,000 and a variable cost of ₦300 per unit produced. If the firm produces 1,000 units, which technology will result in lower total cost?

Correct A. Technology A

B. Technology B

C. Both technologies will result in the same total cost

D. Neither technology will result in lower total cost

Correct Answer: A

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Question 15

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 increases its price from ₦50 to ₦60, what is the percentage change in quantity demanded?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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Question 16

In a sole trader business, what is the primary advantage of using a sole proprietorship structure?

A. Limited liability

B. Easy to set up

Correct C. Flexibility in decision-making

D. No tax benefits

Correct Answer: C

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Question 17

A company has a share capital of ₦1,000,000, divided into 100,000 shares of ₦10 each. If the company issues 20,000 shares at a premium of ₦5 per share, what is the total amount received from the issue of shares?

A. ₦200,000

B. ₦250,000

C. ₦300,000

Correct D. ₦350,000

Correct Answer: D

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Question 18

A consumer purchases a product with a price of ₦500 and a 10% discount. If the consumer pays ₦450, what is the amount of the discount?

Correct A. ₦50

B. ₦45

C. ₦40

D. ₦35

Correct Answer: A

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Question 19

A company has a policy of paying its employees a 10% bonus on their annual salary. If an employee earns ₦100,000 per annum, what is the amount of the bonus?

Correct A. ₦10,000

B. ₦9,000

C. ₦8,000

D. ₦7,000

Correct Answer: A

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Question 20

A business has a profit of ₦200,000 and a tax rate of 20%. If the business pays ₦40,000 in taxes, what is the amount of the profit after taxes?

Correct A. ₦160,000

B. ₦180,000

C. ₦200,000

D. ₦220,000

Correct Answer: A

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Question 21

A company's sole trader, Mr. Adeyemi, has a warehouse with a capacity of 10,000 units. He has 8,000 units of goods stored in the warehouse. If he receives an order for 5,000 units, what is the probability that he will not be able to fulfill the order?

A. 0.2

B. 0.4

Correct C. 0.6

D. 0.8

Correct Answer: C

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Question 22

A bank's financial institution offers a loan with an interest rate of 12% per annum compounded annually. If the principal amount is ₦100,000, what is the amount after 5 years?

A. ₦162,947.92

B. ₦164,947.92

Correct C. ₦166,947.92

D. ₦168,947.92

Correct Answer: C

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Question 23

A marketing firm uses the 4P's (Product, Price, Place, Promotion) to analyze the market. If the product is a new smartphone with a price of ₦50,000, what is the place strategy?

A. Online sales

B. Physical stores

Correct C. Both online and physical stores

D. None of the above

Correct Answer: C

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Question 24

A company's insurance policy has a deductible of ₦10,000. If the claim amount is ₦20,000, what is the amount paid by the insurance company?

A. ₦10,000

Correct B. ₦15,000

C. ₦20,000

D. ₦25,000

Correct Answer: B

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Question 25

A sole trader's business has a profit of ₦50,000. If the business is taxed at a rate of 20%, what is the amount of tax paid?

A. ₦5,000

Correct B. ₦10,000

C. ₦15,000

D. ₦20,000

Correct Answer: B

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