POST UTME BOWEN UNIVERSITY 2022 Commerce | Objective

Are you preparing for POST UTME BOWEN UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2022 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will
A. decrease
Correct B. increase
C. remain constant
D. fluctuate

Correct Answer: B

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Question 2
A firm's production function is given by Q = 2L^(1/2)K^(1/2). If the firm's current labor and capital inputs are L = 16 and K = 25, respectively, calculate the firm's current output level.
A. 20
B. 25
Correct C. 30
D. 35

Correct Answer: C

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Question 3
A consumer has the following utility function: U = 2x + 3y. If the consumer's budget constraint is given by 2x + 3y = 12, and the prices of x and y are 2 and 3, respectively, calculate the consumer's optimal bundle of x and y.
A. (2, 2)
Correct B. (3, 1)
C. (4, 0)
D. (0, 4)

Correct Answer: B

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Question 4
A firm's revenue function is given by R = 100x - 2x^2. If the firm's current output level is x = 10, calculate the firm's current revenue level.
A. 800
Correct B. 900
C. 1000
D. 1100

Correct Answer: B

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Question 5
A consumer has the following indifference curve: U = 2x + 3y. If the consumer's budget constraint is given by 2x + 3y = 12, and the prices of x and y are 2 and 3, respectively, calculate the consumer's optimal bundle of x and y.
A. (2, 2)
Correct B. (3, 1)
C. (4, 0)
D. (0, 4)

Correct Answer: B

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Question 6
A company's production function is given by the equation Q = 100L^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 121 units, and its capital input from 100 units to 121 units, by how much will the quantity produced increase?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 7
A firm's demand function is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm increases its price from ₦100 to ₦120, by how much will the quantity demanded decrease?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 8
A company's cost function is given by the equation C = 100L + 200K, where C is the total cost, L is the labor input, and K is the capital input. If the company increases its labor input from 100 units to 121 units, and its capital input from 100 units to 121 units, by how much will the total cost increase?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 9
A firm's revenue function is given by the equation R = 100P - 2P^2, where R is the total revenue and P is the price. If the firm increases its price from ₦100 to ₦120, by how much will the total revenue increase?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 10
A company's profit function is given by the equation P = R - C, where P is the profit, R is the total revenue, and C is the total cost. If the company increases its labor input from 100 units to 121 units, and its capital input from 100 units to 121 units, by how much will the profit increase?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 11
A company's marketing strategy involves a mix of advertising, sales promotion, and public relations. Which of the following is NOT a characteristic of a successful marketing strategy?
A. Flexibility
B. Adaptability
C. Consistency
Correct D. Unpredictability

Correct Answer: D

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Question 12
A firm's insurance policy covers losses due to fire, theft, and natural disasters. Which of the following is NOT a type of risk that the firm is exposed to?
A. Operational risk
B. Strategic risk
C. Financial risk
Correct D. Compliance risk

Correct Answer: D

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Question 13
A company's warehouse is designed to store goods in a way that minimizes damage and loss. Which of the following is a characteristic of a well-designed warehouse?
A. High storage capacity
B. Easy access to goods
Correct C. Secure storage facilities
D. Minimal maintenance costs

Correct Answer: C

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Question 14
A firm's foreign trade involves importing goods from a foreign country. Which of the following is a benefit of foreign trade?
A. Increased competition
B. Improved market share
Correct C. Access to new markets
D. Reduced production costs

Correct Answer: C

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Question 15
A company's marketing strategy involves a mix of advertising, sales promotion, and public relations. Which of the following is a characteristic of a successful marketing strategy?
A. Flexibility
Correct B. Adaptability
C. Consistency
D. Unpredictability

Correct Answer: B

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Question 16
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost. Which of the following is a correct example of comparative advantage?
A. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 100 units of cloth.
B. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 150 units of cloth.
Correct C. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 50 units of cloth.
D. Country A produces 100 units of wheat and 50 units of cloth, while Country B produces 50 units of wheat and 200 units of cloth.

Correct Answer: C

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Question 17
A company uses a just-in-time (JIT) inventory system to manage its inventory. Which of the following is a benefit of JIT?
Correct A. Reduced inventory costs
B. Improved product quality
C. Increased production capacity
D. Enhanced customer satisfaction

Correct Answer: A

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Question 18
A firm is considering two different marketing strategies: a push strategy and a pull strategy. Which of the following is a key difference between the two strategies?
Correct A. Push strategy focuses on promoting the product to intermediaries, while pull strategy focuses on promoting the product to end-users.
B. Push strategy focuses on promoting the product to end-users, while pull strategy focuses on promoting the product to intermediaries.
C. Push strategy is more expensive than pull strategy.
D. Pull strategy is more effective than push strategy.

Correct Answer: A

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Question 19
A company is considering investing in a new project. The project has a net present value (NPV) of ₦100,000 and a payback period of 5 years. Which of the following is a correct interpretation of the NPV?
Correct A. The project is expected to generate a return of ₦100,000 per year.
B. The project is expected to generate a return of ₦20,000 per year.
C. The project is expected to generate a return of ₦10,000 per year.
D. The project is expected to generate a return of ₦5,000 per year.

Correct Answer: A

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Question 20
A firm is considering two different pricing strategies: a penetration pricing strategy and a skimming pricing strategy. Which of the following is a key difference between the two strategies?
A. Penetration pricing strategy involves setting a high initial price to maximize profits, while skimming pricing strategy involves setting a low initial price to attract customers.
Correct B. Penetration pricing strategy involves setting a low initial price to attract customers, while skimming pricing strategy involves setting a high initial price to maximize profits.
C. Penetration pricing strategy is more effective than skimming pricing strategy.
D. Skimming pricing strategy is more effective than penetration pricing strategy.

Correct Answer: B

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Question 21
A sole trader's business is considered a separate legal entity from its owner. However, the owner's personal assets are still at risk in case the business incurs debts. What is the name of this type of risk?
Correct A. Unlimited Liability
B. Limited Liability
C. Joint Liability
D. Personal Liability

Correct Answer: A

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Question 22
A company's marketing strategy involves creating a unique selling proposition (USP) to differentiate its product from competitors. What is the primary goal of a USP?
A. To increase market share
B. To reduce production costs
Correct C. To create a unique selling proposition
D. To improve customer satisfaction

Correct Answer: C

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Question 23
A company uses the just-in-time (JIT) inventory system to manage its stock levels. What is the primary benefit of JIT?
A. Reduced inventory costs
B. Improved customer satisfaction
C. Increased production efficiency
Correct D. Reduced waste and defects

Correct Answer: D

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Question 24
A company's insurance policy covers losses due to fire, theft, and natural disasters. What type of insurance policy is this?
A. Fire insurance
B. Theft insurance
Correct C. All-risk insurance
D. Comprehensive insurance

Correct Answer: C

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Question 25
A company uses the first-in-first-out (FIFO) inventory system to manage its stock levels. What is the primary benefit of FIFO?
Correct A. Reduced inventory costs
B. Improved customer satisfaction
C. Increased production efficiency
D. Reduced waste and defects

Correct Answer: A

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