POST UTME CHRISTOPHER UNIVERSITY 2024 Commerce | Objective

Are you preparing for POST UTME CHRISTOPHER UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2024 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A firm produces two goods, A and B, using two inputs, labor (L) and capital (K). The production function for good A is given by ( Q_A = 2L^{0.4}K^{0.6} ), and for good B is ( Q_B = 3L^{0.7}K^{0.3} ). If the firm has 100 units of labor and 80 units of capital, how much of good A should it produce to maximize profit?
A. 60 units
B. 80 units
Correct C. 100 units
D. 120 units

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A consumer has a budget of ₦10,000 and faces the following price schedule: ( P_A = 100 - 2Q_A ) and ( P_B = 150 - 3Q_B ). If the consumer's utility function is ( U = 2Q_A + 3Q_B ), what is the optimal bundle of goods A and B?
A. Q_A = 20, Q_B = 10
Correct B. Q_A = 15, Q_B = 15
C. Q_A = 10, Q_B = 20
D. Q_A = 5, Q_B = 25

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A firm is considering two modes of transportation to ship its goods: by truck and by air. The cost of shipping by truck is given by ( C_T = 100 + 2Q ), where ( Q ) is the quantity shipped, and the cost of shipping by air is ( C_A = 500 + 5Q ). If the firm needs to ship 100 units of goods, which mode of transportation should it choose?
Correct A. Truck
B. Air
C. Either mode is equally expensive
D. Neither mode is suitable

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A bank offers a loan of ₦1,000,000 at an interest rate of 10% per annum compounded annually. If the loan is to be repaid in 5 years, what is the total amount to be repaid?
Correct A. ₦1,628,930
B. ₦1,610,000
C. ₦1,650,000
D. ₦1,700,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A firm produces two goods, A and B, using two inputs, labor (L) and capital (K). The production function for good A is given by ( Q_A = 2L^{0.4}K^{0.6} ), and for good B is ( Q_B = 3L^{0.7}K^{0.3} ). If the firm has 100 units of labor and 80 units of capital, what is the opportunity cost of producing 60 units of good A?
A. 40 units of good B
B. 50 units of good B
Correct C. 60 units of good B
D. 70 units of good B

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
A company's sole trader has a warehouse with a capacity of 1000 units. If the company's average daily sales are 50 units, and the stock level is currently at 500 units, what is the minimum number of days the company can sustain its sales without reordering?
Correct A. 10 days
B. 15 days
C. 20 days
D. 25 days

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A firm's foreign trade involves exporting goods worth ₦1,500,000 to a foreign country. If the exchange rate is 1 USD = ₦450, and the firm's bank charges a commission of 2% on the transaction, what is the total cost of the transaction in USD?
Correct A. 3,333.33
B. 3,500.00
C. 3,666.67
D. 4,000.00

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A company's banking system uses a cashless payment method for its employees. If the company has 500 employees, and each employee's average monthly salary is ₦150,000, what is the total amount of money the company saves per month by using the cashless payment method?
Correct A. ₦75,000,000
B. ₦75,500,000
C. ₦76,000,000
D. ₦76,500,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A firm's warehousing system uses a first-in-first-out (FIFO) inventory management system. If the firm has 100 units of goods in stock, and 20 units are sold, what is the new stock level?
Correct A. 80 units
B. 90 units
C. 100 units
D. 110 units

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A company's business unit is a sole trader. If the company's sole trader has a profit of ₦500,000, and the company's tax rate is 20%, what is the company's tax liability?
A. ₦100,000
Correct B. ₦120,000
C. ₦150,000
D. ₦200,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
A firm specializes in producing only one product. This specialization is an example of which of the following production concepts?
A. Economies of scale
Correct B. Division of labor
C. Product differentiation
D. Vertical integration

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A company uses a combination of advertising and sales promotions to increase sales. This is an example of which of the following marketing strategies?
A. Segmentation
B. Targeting
C. Positioning
Correct D. Pull strategy

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A consumer purchases a product that is not as described. This is an example of which of the following consumer protection issues?
A. False advertising
B. Product liability
Correct C. Consumer fraud
D. Unfair trade practices

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A bank offers a loan to a customer at an interest rate of 12% per annum. This is an example of which of the following banking services?
A. Deposit services
B. Investment services
Correct C. Lending services
D. Payment services

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A firm uses a combination of insurance and risk management techniques to minimize losses. This is an example of which of the following risk management strategies?
A. Risk avoidance
B. Risk transfer
C. Risk retention
Correct D. Risk reduction

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A company's warehousing and stock control system is designed to minimize inventory costs. Which of the following inventory control methods is most likely to be used?
Correct A. Just-in-Time (JIT)
B. Economic Order Quantity (EOQ)
C. First-In-First-Out (FIFO)
D. Last-In-First-Out (LIFO)

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A consumer protection agency receives a complaint about a company's misleading advertising. Which of the following laws is most likely to be relevant?
Correct A. Federal Competition and Consumer Protection Act (FCCPA)
B. Consumer Protection Council Act (CPCA)
C. National Industrial Policy and Competitiveness Act (NIPCA)
D. National Information Technology Development Agency Act (NITDA)

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A company's home and foreign trade activities are subject to various regulations. Which of the following regulations is most likely to apply to the company's exports?
Correct A. Export Control Act
B. Import and Export Duty Act
C. Foreign Exchange (Monitoring and Miscellaneous Provisions) Act
D. National Industrial Policy and Competitiveness Act

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A company's insurance policy covers losses due to natural disasters. Which of the following types of insurance is most likely to be relevant?
Correct A. Property Insurance
B. Liability Insurance
C. Business Interruption Insurance
D. Workers' Compensation Insurance

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A company's transport and communication system is designed to minimize costs. Which of the following modes of transport is most likely to be used?
Correct A. Road Transport
B. Rail Transport
C. Air Transport
D. Sea Transport

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
In a perfectly competitive market, the law of diminishing marginal returns states that as the quantity of a variable input increases, the marginal product of that input will eventually decrease. However, this decrease in marginal product is not necessarily due to the law of diminishing marginal returns. What is the correct explanation for this decrease in marginal product?
A. The law of diminishing marginal returns is not applicable in this scenario.
B. The decrease in marginal product is due to the law of diminishing marginal returns.
Correct C. The decrease in marginal product is due to the law of increasing opportunity costs.
D. The decrease in marginal product is due to the law of diminishing returns.

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A company has a sole proprietorship business structure. What is the primary advantage of this business structure?
A. Unlimited personal liability
Correct B. Limited personal liability
C. Unlimited business liability
D. Limited business liability

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A firm 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. What is the correct interpretation of the NPV?
Correct A. The project is expected to generate a positive NPV.
B. The project is expected to generate a negative NPV.
C. The project is expected to break even.
D. The project is expected to generate a zero NPV.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A company is considering exporting its products to a foreign country. What is the primary advantage of exporting?
A. Increased market share
B. Reduced competition
Correct C. Increased revenue
D. Reduced production costs

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A firm is considering investing in a new project. The project has a required rate of return (RRR) of 10% and an expected rate of return (ERR) of 12%. What is the correct interpretation of the RRR?
Correct A. The project is expected to generate a positive ERR.
B. The project is expected to generate a negative ERR.
C. The project is expected to break even.
D. The project is expected to generate a zero ERR.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support