POST UTME UNIBEN 2017 Commerce | Objective

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Question 1
In a perfectly competitive market, what is the relationship between the marginal revenue product of labor and the marginal factor cost of labor?
A. MRP = MFC
B. MRP > MFC
Correct C. MRP < MFC
D. MRP = -MFC

Correct Answer: C

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Question 2
A firm's demand curve shifts to the right due to an increase in consumer income. What happens to the firm's equilibrium price and quantity?
A. P increases, Q decreases
B. P decreases, Q increases
Correct C. P increases, Q increases
D. P decreases, Q decreases

Correct Answer: C

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Question 3
A bank's cash reserve ratio is 10%. If the bank has a deposit of ₦100,000, how much cash can it lend to its customers?
Correct A. ₦90,000
B. ₦80,000
C. ₦70,000
D. ₦60,000

Correct Answer: A

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Question 4
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 100 units of output, and the price of labor is ₦10 per unit, and the price of capital is ₦20 per unit, how much should it spend on labor and capital?
Correct A. ₦1000 labor, ₦2000 capital
B. ₦2000 labor, ₦1000 capital
C. ₦5000 labor, ₦5000 capital
D. ₦10000 labor, ₦10000 capital

Correct Answer: A

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Question 5
A firm's demand curve is given by Q = 100 - 2P. If the firm's marginal revenue is ₦50 per unit, and the price of the good is ₦20, what is the firm's marginal cost?
A. ₦30
B. ₦40
Correct C. ₦50
D. ₦60

Correct Answer: C

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Question 6
The concept of 'production' in commerce refers to the process of creating a product or service that meets the needs of consumers. Which of the following best describes the primary goal of production?
A. To maximize profits
B. To minimize costs
Correct C. To meet consumer demand
D. To increase market share

Correct Answer: C

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Question 7
A company is considering the introduction of a new product line. Which of the following marketing strategies would be most effective in promoting the new product?
A. Social media advertising
B. Influencer marketing
Correct C. Content marketing
D. Email marketing

Correct Answer: C

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Question 8
A consumer has purchased a product that has a manufacturing defect. Which of the following laws would provide the consumer with the most protection?
A. The Sale of Goods Act
Correct B. The Consumer Protection Act
C. The Competition Act
D. The Companies Act

Correct Answer: B

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Question 9
A company is considering the use of a sole trader business structure. Which of the following advantages would be most relevant to the company?
A. Easy to set up
B. Low administrative costs
Correct C. Flexibility in decision-making
D. Limited liability

Correct Answer: C

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Question 10
A company is considering the use of a company business structure. Which of the following advantages would be most relevant to the company?
A. Easy to set up
B. Low administrative costs
C. Flexibility in decision-making
Correct D. Limited liability

Correct Answer: D

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Question 11
A firm's decision to export goods to a foreign market involves several factors. Which of the following is NOT a factor to be considered?
A. Political stability of the foreign country
B. Economic stability of the foreign country
C. Cultural compatibility of the product with the foreign market
Correct D. Availability of raw materials in the foreign country

Correct Answer: D

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Question 12
A company uses the just-in-time (JIT) inventory system. Which of the following is a benefit of JIT?
Correct A. Reduced inventory costs
B. Improved product quality
C. Increased production capacity
D. Reduced transportation costs

Correct Answer: A

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Question 13
A firm's marketing strategy involves a mix of promotional tools. Which of the following is NOT a promotional tool?
A. Advertising
B. Public relations
C. Sales promotion
Correct D. Research and development

Correct Answer: D

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Question 14
A company uses the activity-based costing (ABC) system. Which of the following is a benefit of ABC?
Correct A. Improved product costing
B. Reduced inventory costs
C. Increased production capacity
D. Improved customer service

Correct Answer: A

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Question 15
A firm's supply chain management involves several activities. Which of the following is NOT a supply chain activity?
A. Procurement
B. Production
C. Distribution
Correct D. Research and development

Correct Answer: D

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Question 16
In a sole trade business, what is the primary advantage of using a sole trader's personal assets to finance the business?
A. Limited liability
B. Tax benefits
C. Flexibility in decision-making
Correct D. Access to personal assets

Correct Answer: D

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Question 17
A company has a share capital of ₦1,000,000, divided into 100,000 ordinary shares of ₦10 each. If the company issues 50,000 shares at a premium of ₦5 per share, what is the total amount received from the issue of shares?
A. ₦500,000
B. ₦750,000
Correct C. ₦1,250,000
D. ₦1,500,000

Correct Answer: C

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Question 18
A foreign trade agreement between two countries involves the exchange of goods worth ₦1,000,000 for goods worth 200,000. If the exchange rate is ₦500 = 1, what is the value of the goods received by each country in terms of the other country's currency?
A. ₦500,000 for ₦1,000,000
Correct B. 400,000 for 200,000
C. ₦1,000,000 for ₦500,000
D. 200,000 for ₦1,000,000

Correct Answer: B

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Question 19
A company'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 company increases its labor input from 100 units to 200 units, and its capital input from 100 units to 200 units, what is the percentage increase in the quantity produced?
A. 25%
Correct B. 50%
C. 75%
D. 100%

Correct Answer: B

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Question 20
A bank's balance sheet is given by Assets = ₦1,000,000, Liabilities = ₦500,000, and Equity = ₦500,000. If the bank increases its assets by 20% and its liabilities by 10%, what is the new equity?
A. ₦600,000
B. ₦650,000
C. ₦700,000
Correct D. ₦750,000

Correct Answer: D

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Question 21
In a just-in-time inventory system, the reorder point is determined by the product of the safety stock level and the lead time. If the safety stock level is 100 units and the lead time is 5 days, what is the reorder point?
A. 500 units
Correct B. 750 units
C. 1000 units
D. 1250 units

Correct Answer: B

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Question 22
A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 70% full. If 500 units are received, what is the new percentage of capacity?
A. 60%
Correct B. 65%
C. 70%
D. 75%

Correct Answer: B

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Question 23
A company has a policy of maintaining a 20% buffer stock. If the current stock level is 5,000 units, what is the reorder point?
A. 4,000 units
B. 5,000 units
Correct C. 6,000 units
D. 7,000 units

Correct Answer: C

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Question 24
A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 50% full. If 1,000 units are received, what is the new percentage of capacity?
A. 55%
Correct B. 60%
C. 65%
D. 70%

Correct Answer: B

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Question 25
A company has a policy of maintaining a 15% buffer stock. If the current stock level is 3,000 units, what is the reorder point?
A. 2,250 units
Correct B. 2,500 units
C. 3,000 units
D. 3,500 units

Correct Answer: B

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