Practice Post UTME UNIPORT commerce 2021 Past Questions

Question 1

A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the number of labor hours, and K is the capital invested. If the company wants to increase its production by 20% while keeping labor hours constant at 100, how much capital should it invest?

A. ₦1250

B. ₦1500

Correct C. ₦1750

D. ₦2000

Correct Answer: C

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Question 2

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 wants to maximize its revenue, what price should it charge?

A. ₦10

Correct B. ₦20

C. ₦30

D. ₦40

Correct Answer: B

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Question 3

A company's cost function is given by C = 100 + 2L + 3K, where C is the total cost, L is the number of labor hours, and K is the capital invested. If the company wants to minimize its cost while producing 100 units, how many labor hours should it use?

A. ₦100

Correct B. ₦200

C. ₦300

D. ₦400

Correct Answer: B

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Question 4

A firm's supply function is given by Q = 50 + 2P, where Q is the quantity supplied and P is the price. If the firm wants to maximize its profit, what price should it charge?

A. ₦10

B. ₦20

Correct C. ₦30

D. ₦40

Correct Answer: C

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Question 5

A company's revenue function is given by R = 100P - 2P^2, where R is the revenue and P is the price. If the company wants to maximize its revenue, what price should it charge?

A. ₦10

Correct B. ₦20

C. ₦30

D. ₦40

Correct Answer: B

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Question 6

A company is considering the introduction of a new product line. The product line has a high initial investment but will generate significant revenue in the long run. The company's financial manager has calculated the net present value (NPV) of the project to be ₦120,000. However, the company's policy is to only invest in projects with an NPV of at least ₦150,000. What should the company do?

A. Accept the project and invest the initial amount

Correct B. Reject the project and not invest the initial amount

C. Invest a portion of the initial amount to test the market

D. Delay the decision until more information is available

Correct Answer: B

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Question 7

A consumer purchases a product with a price of ₦5,000 and a 10% discount. The consumer also receives a ₦1,000 voucher. What is the final price of the product?

Correct A. ₦4,000

B. ₦4,500

C. ₦5,000

D. ₦5,500

Correct Answer: A

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Question 8

A sole trader has a business income of ₦200,000 and a business expense of ₦150,000. What is the sole trader's business profit?

Correct A. ₦50,000

B. ₦100,000

C. ₦150,000

D. ₦200,000

Correct Answer: A

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Question 9

A company has a warehouse with a capacity of 10,000 units. The company receives an order for 8,000 units and has a stock level of 2,000 units. What is the new stock level after fulfilling the order?

Correct A. 6,000 units

B. 8,000 units

C. 10,000 units

D. 12,000 units

Correct Answer: A

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Question 10

A risk manager has identified a potential risk to a company's operations. The risk has a probability of occurrence of 0.2 and a potential loss of ₦100,000. What is the expected value of the risk?

A. ₦20,000

Correct B. ₦40,000

C. ₦60,000

D. ₦80,000

Correct Answer: B

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Question 11

In a perfectly competitive market, the supply curve is upward-sloping because firms are motivated to increase production in response to higher prices, but they are also constrained by their production costs. What is the name of the economic concept that describes this relationship between production costs and supply?

A. Law of Diminishing Returns

Correct B. Law of Increasing Costs

C. Law of Supply

D. Law of Demand

Correct Answer: B

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Question 12

A company is considering two different production processes for its new product. Process A requires an initial investment of ₦1,000,000 and generates a profit of ₦500,000 per year. Process B requires an initial investment of ₦2,000,000 and generates a profit of ₦1,000,000 per year. Which process should the company choose if it wants to maximize its profits?

A. Process A

Correct B. Process B

C. Both processes are equally profitable

D. Neither process is profitable

Correct Answer: B

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Question 13

A consumer has a budget of ₦10,000 and is considering purchasing two different products. Product A costs ₦5,000 and Product B costs ₦8,000. If the consumer wants to maximize its utility, which product should it choose?

Correct A. Product A

B. Product B

C. Both products are equally desirable

D. Neither product is desirable

Correct Answer: A

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Question 14

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. Which strategy should the company choose if it wants to maximize its sales?

Correct A. Strategy A

B. Strategy B

C. Both strategies are equally effective

D. Neither strategy is effective

Correct Answer: A

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Question 15

A consumer has a budget of ₦5,000 and is considering purchasing two different products. Product A costs ₦2,000 and Product B costs ₦3,000. If the consumer wants to maximize its utility, which product should it choose?

Correct A. Product A

B. Product B

C. Both products are equally desirable

D. Neither product is desirable

Correct Answer: A

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Question 16

A sole trader's business is considered a separate legal entity from its owner. Discuss this statement in the context of business law.

Correct A. True

B. False

C. Depends on the jurisdiction

D. Not applicable to sole traders

Correct Answer: A

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Question 17

A company's articles of association may provide for the issue of preference shares. What are the characteristics of preference shares?

A. They have a higher claim on assets than ordinary shares

B. They have a lower claim on assets than ordinary shares

Correct C. They have a fixed dividend rate

D. They have a variable dividend rate

Correct Answer: C

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Question 18

A producer's production function is given by Q = 2L^0.5 * K^0.5. What is the marginal product of labor?

A. L^(-0.5) * K^0.5

Correct B. 2L^(-0.5) * K^0.5

C. L^0.5 * K^(-0.5)

D. 2L^0.5 * K^(-0.5)

Correct Answer: B

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Question 19

A consumer has a utility function given by U = 2x + 3y. What is the marginal utility of good x?

Correct A. 2

B. 3

C. 2y

D. 3x

Correct Answer: A

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Question 20

A company's balance sheet is given by Assets = ₦100,000, Liabilities = ₦50,000, and Share Capital = ₦30,000. What is the company's net worth?

A. ₦20,000

B. ₦30,000

Correct C. ₦40,000

D. ₦50,000

Correct Answer: C

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Question 21

The concept of specialization in production is closely related to the idea of comparative advantage. Explain how a country can benefit from specializing in the production of a good in which it has a comparative advantage.

Correct A. By producing the good at a lower opportunity cost than other countries.

B. By producing the good at a higher opportunity cost than other countries.

C. By producing the good at the same opportunity cost as other countries.

D. By producing the good at a negative opportunity cost.

Correct Answer: A

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Question 22

A company is considering two different storage facilities for its inventory. Facility A has a capacity of 10,000 units and a storage cost of ₦5 per unit per month. Facility B has a capacity of 20,000 units and a storage cost of ₦3 per unit per month. If the company expects to store 15,000 units of inventory, which facility should it choose and why?

A. Facility A because it has a lower storage cost.

B. Facility B because it has a higher storage capacity.

C. Facility A because it has a higher storage capacity.

Correct D. Facility B because it has a lower storage cost.

Correct Answer: D

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Question 23

A consumer protection agency has received a complaint from a customer who purchased a defective product. The product was sold with a warranty that covered defects for a period of one year. However, the product failed after six months of use. What is the agency's likely course of action?

A. The agency will require the manufacturer to replace the product.

B. The agency will require the manufacturer to provide a refund.

Correct C. The agency will require the manufacturer to repair the product.

D. The agency will dismiss the complaint.

Correct Answer: C

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Question 24

A company is considering exporting its products to a foreign market. However, the company is concerned about the risks associated with international trade. What are some of the key risks that the company should consider?

Correct A. Political risk, economic risk, and exchange rate risk.

B. Market risk, credit risk, and liquidity risk.

C. Currency risk, interest rate risk, and inflation risk.

D. Commodity risk, supply chain risk, and regulatory risk.

Correct Answer: A

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Question 25

A company is considering importing a raw material from a foreign supplier. However, the company is concerned about the quality of the material. What are some of the key factors that the company should consider when evaluating the quality of the material?

A. Price, delivery time, and packaging.

Correct B. Quality certification, supplier reputation, and material testing.

C. Material specification, supplier experience, and logistics.

D. Product design, production process, and quality control.

Correct Answer: B

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