POST UTME UI 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's cost function is given by C = 50L + 20K. If the firm hires 5 units of labor and 2 units of capital, what is its total cost?
A. ₦300
B. ₦350
C. ₦400
D. ₦450
Question 2
A company's sole trader has a warehouse with a capacity of 10,000 units. If the company's current stock is 8,000 units and the demand rate is 500 units per day, what is the maximum number of days the company can maintain its current stock level without reordering?
A. 20 days
B. 30 days
C. 40 days
D. 50 days
Question 3
A firm's revenue function is given by R = 2Q^2 - 5Q + 3, where Q is the quantity sold. If the firm wants to maximize its revenue, then the optimal quantity to produce is
A. 1
B. 2
C. 3
D. 4
Question 4
In a perfectly competitive market, the equilibrium price and quantity of a commodity are determined by the intersection of the market demand and supply curves. However, if the market is subject to externalities, the equilibrium price and quantity may not reflect the true social costs and benefits of production. Which of the following best describes the effect of an externality on the equilibrium price and quantity?
A. The externality causes the equilibrium price to increase and the quantity to decrease.
B. The externality causes the equilibrium price to decrease and the quantity to increase.
C. The externality has no effect on the equilibrium price and quantity.
D. The externality causes the equilibrium price to increase and the quantity to increase.
Question 5
A consumer has a budget of ₦1000 and a utility function given by U = 2x + 3y, where x and y are the quantities of two goods. The prices of the goods are given by p_x = ₦200 and p_y = ₦300. What is the consumer's optimal bundle?
A. x = 2, y = 1
B. x = 3, y = 2
C. x = 4, y = 3
D. x = 5, y = 4
Question 6
A company exports goods to a foreign country. Which of the following is a benefit of exporting?
A. Increased domestic employment
B. Reduced domestic prices
C. Increased foreign exchange earnings
D. Reduced domestic production
Question 7
A firm is producing a commodity with a constant elasticity of demand of -2. The firm's marginal cost is given by MC = 10 + 2Q. What is the profit-maximizing price?
A. P = ₦20
B. P = ₦30
C. P = ₦40
D. P = ₦50
Question 8
In a perfectly competitive market, the demand curve for a firm's product is its
A. marginal revenue curve
B. marginal cost curve
C. average revenue curve
D. average cost curve
Question 9
A firm uses a just-in-time inventory system. Which of the following is a characteristic of this system?
A. High inventory levels
B. Low inventory levels
C. Reduced inventory turnover
D. Increased inventory costs
Question 10
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the wage rate is ₦100 per hour, and the rental rate is ₦200 per unit of capital, then the cost-minimizing input combination is
A. L = 4, K = 4
B. L = 16, K = 1
C. L = 1, K = 16
D. L = 4, K = 16
Question 11
A company's sole trader has a warehouse with a capacity of 10,000 units. If the company's current stock is 8,000 units and the demand rate is 500 units per day, what is the maximum number of days the company can maintain its current stock level without reordering?
A. 20 days
B. 30 days
C. 40 days
D. 50 days
Question 12
A consumer has the following budget constraint: 2U + 3V = 12, where U and V are the quantities of two goods. If the consumer is indifferent between the two goods, then the consumer's indifference curve is
A. 2U + 3V = 6
B. 2U + 3V = 9
C. 2U + 3V = 12
D. 2U + 3V = 15
Question 13
A company uses a just-in-time inventory system. What is the primary advantage of this system?
A. Reduced inventory costs
B. Improved product quality
C. Increased flexibility in production
D. Enhanced customer service
Question 14
A firm's demand function is given by Q = 100 - 2P. If the firm's revenue is ₦5000, and the price of the good is ₦50, what is the firm's marginal revenue?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 15
A consumer has the following budget constraint: 2x + 3y = 100. If the consumer's indifference curve is given by U = x + 2y, and the prices of x and y are ₦50 and ₦75 respectively, what is the consumer's optimal bundle?
A. (20, 10)
B. (15, 12)
C. (10, 15)
D. (5, 20)

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