Practice Post UTME UNILAG commerce 2020 Past Questions

Question 1

In a perfectly competitive market, what is the relationship between the marginal revenue product (MRP) and the marginal factor cost (MFC)?

A. MRP > MFC

B. MRP < MFC

Correct C. MRP = MFC

D. MRP and MFC are unrelated

Correct Answer: C

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Question 2

A firm's production function is given by Q = 2L^0.5 + 3K^0.5. If the price of labor (w) is ₦100 and the price of capital (r) is ₦200, what is the optimal level of labor (L) and capital (K)?

A. L = 4, K = 9

B. L = 9, K = 4

Correct C. L = 16, K = 9

D. L = 9, K = 16

Correct Answer: C

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Question 3

A consumer has a utility function given by U = 2x + 3y. If the prices of x and y are ₦50 and ₦100 respectively, and the consumer has a budget of ₦500, what is the optimal level of x and y?

Correct A. x = 5, y = 3

B. x = 3, y = 5

C. x = 10, y = 2

D. x = 2, y = 10

Correct Answer: A

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Question 4

A firm's demand function is given by Q = 100 - 2P. If the firm's marginal revenue (MR) is ₦50, what is the optimal price (P)?

A. P = ₦25

Correct B. P = ₦50

C. P = ₦75

D. P = ₦100

Correct Answer: B

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Question 5

A consumer has a budget of ₦500 and a utility function given by U = 2x + 3y. If the prices of x and y are ₦50 and ₦100 respectively, what is the optimal level of x and y?

Correct A. x = 5, y = 3

B. x = 3, y = 5

C. x = 10, y = 2

D. x = 2, y = 10

Correct Answer: A

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Question 6

A firm specializes in producing a single product. If the firm's production function is given by Q = 100L^0.5, where Q is the quantity produced and L is the labor input, what is the marginal product of labor when L = 100?

Correct A. 50

B. 100

C. 200

D. 500

Correct Answer: A

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Question 7

A company imports goods worth ₦10,000,000 from a foreign country. If the exchange rate is 1 USD = ₦360, what is the value of the goods in USD?

Correct A. 27,777.78

B. 28,000.00

C. 28,500.00

D. 29,000.00

Correct Answer: A

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Question 8

A firm stores its inventory in a warehouse with a capacity of 10,000 units. If the firm's inventory level is currently at 8,000 units, what is the percentage of the warehouse that is currently occupied?

Correct A. 80%

B. 85%

C. 90%

D. 95%

Correct Answer: A

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Question 9

A company has a 10% dividend yield on its shares. If the current market price of the shares is ₦100, what is the annual dividend payment per share?

Correct A. ₦10

B. ₦12.50

C. ₦15.00

D. ₦17.50

Correct Answer: A

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Question 10

A firm has a production function given by Q = 2L^2 + 3K^2, where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm's labor input is 5 units and its capital input is 3 units, what is the marginal product of labor?

A. 20

B. 30

Correct C. 40

D. 50

Correct Answer: C

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Question 11

A company is sued for violating the Consumer Protection Act. The company claims that the product was not defective at the time of sale. However, the consumer alleges that the product was defective and caused harm. Which of the following is the most appropriate defense for the company?

A. The company can argue that the consumer misused the product, which caused the harm.

Correct B. The company can argue that the product was not defective at the time of sale.

C. The company can argue that the consumer failed to follow the instructions for use.

D. The company can argue that the consumer is not entitled to compensation because they did not purchase the product from an authorized dealer.

Correct Answer: B

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Question 12

A firm is considering exporting its products to a foreign country. The firm has identified several potential markets, but it is unsure which one to choose. Which of the following factors should the firm consider when deciding which market to enter?

Correct A. The firm should consider the size of the market and the level of competition.

B. The firm should consider the cultural and social norms of the target market.

C. The firm should consider the political and economic stability of the target market.

D. The firm should consider the availability of raw materials and labor in the target market.

Correct Answer: A

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Question 13

A company is considering investing in a new production process. The company has identified several options, but it is unsure which one to choose. Which of the following factors should the company consider when deciding which option to choose?

Correct A. The company should consider the cost of the new process and the potential return on investment.

B. The company should consider the environmental impact of the new process.

C. The company should consider the level of specialization required for the new process.

D. The company should consider the availability of raw materials and labor for the new process.

Correct Answer: A

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Question 14

A firm is considering launching a new product. The firm has identified several potential marketing strategies, but it is unsure which one to choose. Which of the following factors should the firm consider when deciding which strategy to choose?

A. The firm should consider the target market and the level of competition.

Correct B. The firm should consider the product's unique selling proposition and the level of advertising required.

C. The firm should consider the product's price and the level of distribution required.

D. The firm should consider the product's quality and the level of customer service required.

Correct Answer: B

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Question 15

A company is considering forming a partnership with another company. The company has identified several potential partners, but it is unsure which one to choose. Which of the following factors should the company consider when deciding which partner to choose?

Correct A. The company should consider the partner's financial resources and the level of commitment required.

B. The company should consider the partner's expertise and the level of risk involved.

C. The company should consider the partner's reputation and the level of trust required.

D. The company should consider the partner's location and the level of logistics required.

Correct Answer: A

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Question 16

A firm is considering expanding its operations to a new country. The firm has identified several potential locations, but it is unsure which one to choose. Which of the following factors should the firm consider when deciding which location to choose?

Correct A. The firm should consider the location's economic stability and the level of infrastructure required.

B. The firm should consider the location's cultural and social norms and the level of adaptation required.

C. The firm should consider the location's political stability and the level of risk involved.

D. The firm should consider the location's natural resources and the level of environmental impact required.

Correct Answer: A

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Question 17

A company is considering investing in a new project. The company has identified several options, but it is unsure which one to choose. Which of the following factors should the company consider when deciding which option to choose?

Correct A. The company should consider the project's potential return on investment and the level of risk involved.

B. The company should consider the project's environmental impact and the level of social responsibility required.

C. The company should consider the project's level of specialization and the level of expertise required.

D. The company should consider the project's availability of raw materials and labor and the level of logistics required.

Correct Answer: A

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Question 18

A firm is considering launching a new product. The firm has identified several potential marketing strategies, but it is unsure which one to choose. Which of the following factors should the firm consider when deciding which strategy to choose?

A. The firm should consider the target market and the level of competition.

B. The firm should consider the product's unique selling proposition and the level of advertising required.

C. The firm should consider the product's price and the level of distribution required.

D. The firm should consider the product's quality and the level of customer service required.

Correct Answer: VIEW ANSWER

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Question 19

A firm specializes in producing two goods: X and Y. The production of X requires 2 units of labor and 1 unit of capital, while the production of Y requires 3 units of labor and 2 units of capital. If the firm has 12 units of labor and 8 units of capital, what is the maximum number of units of good X that can be produced?

A. 6

B. 8

Correct C. 10

D. 12

Correct Answer: C

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Question 20

A company has the following insurance policy: a premium of ₦1,000,000, a deductible of ₦500,000, and a coverage limit of ₦5,000,000. If the company suffers a loss of ₦6,000,000, what is the total amount that the company will have to pay?

A. ₦1,500,000

B. ₦2,000,000

Correct C. ₦2,500,000

D. ₦3,000,000

Correct Answer: C

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Question 21

A sole trader has the following assets: a cash balance of ₦200,000, accounts receivable of ₦300,000, inventory of ₦400,000, and a building worth ₦1,000,000. What is the total value of the assets?

A. ₦2,000,000

B. ₦2,200,000

C. ₦2,300,000

Correct D. ₦2,400,000

Correct Answer: D

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Question 22

A company imports goods worth ₦1,000,000 from a foreign country. The company pays a customs duty of 10% on the value of the goods. What is the total amount paid by the company?

A. ₦1,100,000

B. ₦1,200,000

Correct C. ₦1,300,000

D. ₦1,400,000

Correct Answer: C

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Question 23

A consumer protection law requires that all goods sold in a particular market must be labeled with the following information: the name of the product, the ingredients used, and the instructions for use. A company sells a product that does not comply with this law. What is the consequence of the company's action?

A. The company will be fined ₦500,000

B. The company will be required to recall the product

Correct C. The company will be banned from selling the product

D. The company will be required to pay a compensation of ₦1,000,000 to the consumer

Correct Answer: C

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Question 24

A company has the following business law: a contract between the company and a supplier requires the supplier to deliver goods within 30 days of the date of the contract. The supplier fails to deliver the goods within the stipulated time. What is the consequence of the supplier's action?

A. The supplier will be required to pay a fine of ₦500,000

B. The supplier will be required to deliver the goods within 15 days

C. The supplier will be required to pay a compensation of ₦1,000,000 to the company

Correct D. The supplier will be required to pay a penalty of ₦2,000,000

Correct Answer: D

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Question 25

A firm has the following production costs: variable costs of ₦100,000 and fixed costs of ₦200,000. The firm produces 100 units of a product. What is the total cost of production?

A. ₦300,000

B. ₦400,000

Correct C. ₦500,000

D. ₦600,000

Correct Answer: C

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