POST UTME BSU 2017 Commerce | Objective

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Question 1
A company has a fleet of 10 trucks that travel an average of 20,000 kilometers per year. The company pays ₦0.05 per kilometer for fuel. If the company wants to reduce its fuel costs by 10%, how many kilometers should each truck travel per year?
A. 18,000 km
B. 19,000 km
C. 20,000 km
D. 21,000 km
Question 2
A consumer has a budget constraint of ₦1,000 and a preference for two goods, A and B. The prices of goods A and B are ₦200 and ₦300 respectively. What is the consumer's optimal consumption bundle?
A. (4, 2)
B. (2, 3)
C. (3, 2)
D. (2, 4)
Question 3
A firm's cost function is given by C = 2L + 3H, where C is cost, L is labor and H is capital. If the firm wants to minimize cost while producing 100 units of output, what is the optimal combination of labor and capital?
A. L = 20, H = 30
B. L = 30, H = 20
C. L = 40, H = 10
D. L = 10, H = 40
Question 4
A company is considering two marketing strategies: Strategy A, which involves a 10% increase in advertising expenditure, and Strategy B, which involves a 20% increase in sales force. If the company's current sales are ₦100 million, what is the expected increase in sales under Strategy A?
A. ₦10 million
B. ₦20 million
C. ₦30 million
D. ₦40 million
Question 5
A warehouse is storing a large quantity of perishable goods. The warehouse has a temperature control system that maintains a consistent temperature of 20°C. However, the system is not designed to handle extreme temperature fluctuations. What type of inventory management strategy should the warehouse use to minimize stock loss?
A. First-in, first-out (FIFO)
B. Last-in, first-out (LIFO)
C. First-expired, first-out (FEFO)
D. Just-in-time (JIT)
Question 6
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor and H is capital. If the firm wants to increase output by 20% while keeping labor constant, what percentage increase in capital is required?
A. 10%
B. 20%
C. 30%
D. 40%
Question 7
A company's production function is given by Q = 2L^0.5K^0.5. If the company increases its labor input from 4 units to 6 units, and keeps its capital input constant at 9 units, what is the percentage change in output?
A. 10%
B. 20%
C. 30%
D. 40%
Question 8
A company is considering a new marketing strategy that involves partnering with a popular social media influencer. The influencer has a large following and is known for promoting products that align with the company's brand values. However, the influencer's fees are high, and the company is unsure if the partnership will generate sufficient returns on investment. What type of risk is the company taking on by partnering with the influencer?
A. Financial risk
B. Reputation risk
C. Operational risk
D. Strategic risk
Question 9
A sole trader is considering the formation of a partnership. Using the concept of risk and return, determine the minimum number of partners required to achieve a 20% return on investment.
A. 2 partners
B. 3 partners
C. 4 partners
D. 5 partners
Question 10
A consumer is considering the purchase of a product with a price of ₦500. Using the concept of elasticity of demand, determine the minimum price increase required to reduce demand by 20%.
A. ₦10
B. ₦20
C. ₦30
D. ₦40
Question 11
A firm's revenue function is given by R = 2Q^2, where R is revenue and Q is output. If the firm wants to increase revenue by 50% while keeping output constant, what is the new revenue?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 12
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing marginal opportunity cost. What is the primary reason for this upward-sloping supply curve?
A. Increasing marginal cost
B. Decreasing marginal revenue
C. Increasing marginal opportunity cost
D. Decreasing marginal utility
Question 13
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the equilibrium price and quantity of a product in this market?
A. ₦100, 1000 units
B. ₦120, 800 units
C. ₦150, 600 units
D. ₦180, 400 units
Question 14
A foreign trade agreement between two countries is governed by the _______ Convention.
A. General Agreement on Tariffs and Trade (GATT)
B. World Trade Organization (WTO)
C. International Trade Organization (ITO)
D. United Nations Conference on Trade and Development (UNCTAD)
Question 15
Determine the optimal warehouse layout for a retail store with a high volume of fast-moving products, using the principles of space utilization and material handling.
A. First-In-First-Out (FIFO) storage
B. Last-In-First-Out (LIFO) storage
C. Zone storage
D. Class-based storage

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