POST UTME UI 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
In a perfectly competitive market, the supply curve is upward-sloping because
A. Firms are willing to supply more of the good as its price increases.
B. Firms are willing to supply less of the good as its price increases.
C. The law of diminishing marginal returns causes firms to supply less of the good as its price increases.
D. The law of increasing opportunity costs causes firms to supply more of the good as its price increases.
Question 2
A marketing strategy involves the creation of a new product to target a specific customer segment. What is the primary benefit of this approach?
A. Increased market share
B. Improved brand recognition
C. Enhanced customer loyalty
D. Reduced competition
Question 3
A company's risk management strategy involves diversification of assets to minimize potential losses. Which of the following is an example of a diversification strategy?
A. Investing in a single stock
B. Spreading investments across different asset classes
C. Focusing on a specific industry
D. Diversifying investments within a single industry
Question 4
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the effect of an increase in the price of a complementary good on the demand curve for the good in question?
A. The demand curve shifts to the left.
B. The demand curve shifts to the right.
C. The demand curve remains unchanged.
D. The demand curve shifts downward.
Question 5
A company uses a just-in-time inventory system. What is the primary advantage of this system?
A. Reduced storage costs
B. Improved customer satisfaction
C. Increased efficiency in production
D. Reduced waste and excess inventory
Question 6
In a consumer protection law, what is the primary purpose of the 'cooling-off period'?
A. To allow consumers to change their minds and return goods
B. To give businesses time to process returns and refunds
C. To prevent consumers from buying goods on impulse
D. To protect consumers from being misled by false advertising
Question 7
A firm's foreign trade strategy involves importing goods from other countries. Which of the following is an example of a foreign trade strategy?
A. Exporting goods to other countries
B. Importing goods from other countries
C. Investing in foreign markets
D. Participating in international trade fairs
Question 8
A firm has a profit function π = 100Q - 2Q^2 - 100 - 2L - 3K, where π is the total profit, Q is the quantity of output, L is labor, and K is capital. If the price of labor is 10 per hour and the price of capital is 20 per unit, and if the firm wants to maximize its profit, what is the optimal level of labor?
A. 5
B. 10
C. 15
D. 20
Question 9
A company has a debt of ₦1,500,000 and an equity of ₦2,000,000. What is the company's total capital?
A. ₦3,500,000
B. ₦3,000,000
C. ₦3,500,000
D. ₦3,000,000
Question 10
A company purchases a liability insurance policy to protect against lawsuits. What is the primary benefit of this policy?
A. Reduced risk of financial loss
B. Improved reputation and customer trust
C. Increased efficiency in operations
D. Reduced need for internal controls
Question 11
A company has a revenue function R = 100Q - 2Q^2, where R is the total revenue and Q is the quantity of output. If the company wants to maximize its revenue, what is the optimal level of output?
A. 10
B. 20
C. 30
D. 40
Question 12
A company's production process involves the use of a lean manufacturing system. What is the primary goal of this approach?
A. To minimize production costs
B. To maximize production efficiency
C. To reduce waste and inefficiency
D. To increase product quality
Question 13
A consumer has a utility function U = 2x + 3y, where x is the number of units of good A consumed and y is the number of units of good B consumed. If the consumer consumes 2 units of good A and 3 units of good B, what is the total utility?
A. 10
B. 12
C. 15
D. 18
Question 14
A firm's cost function is given by C = 2L + 3K. If the firm wants to minimize its costs while producing 100 units of output, what is the optimal combination of labor and capital?
A. L = 20, K = 30
B. L = 30, K = 20
C. L = 40, K = 10
D. L = 10, K = 40
Question 15
A firm has a cost function C = 100 + 2L + 3K, where C is the total cost, L is labor, and K is capital. If the price of labor is 10 per hour and the price of capital is 20 per unit, and if the firm wants to minimize its cost, what is the optimal level of labor?
A. 5
B. 10
C. 15
D. 20

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