POST UTME DELSU 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a budget of ₦1,000,000 to spend on advertising. If the cost of advertising on TV is ₦200,000 per minute and the cost of advertising on radio is ₦150,000 per minute, how many minutes of TV advertising can the company afford if it wants to spend at least 60% of its budget on TV advertising?
A. 200
B. 250
C. 300
D. 350
Question 2
A firm has a production function given by Q = 2L^0.5K^0.5. If the firm wants to produce 100 units of output, and the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, how much will the firm spend on labor and capital?
A. ₦20000
B. ₦30000
C. ₦40000
D. ₦50000
Question 3
A firm's revenue function is given by R(Q) = 10Q - 2Q^2. If the firm's current output level is Q = 8, what is the firm's current revenue?
A. 48
B. 60
C. 72
D. 84
Question 4
A consumer's budget constraint is given by P1Q1 + P2Q2 = 100. If the price of good 1 is ₦10 and the price of good 2 is ₦20, and the consumer spends ₦80 on good 1, how much does the consumer spend on good 2?
A. ₦20
B. ₦40
C. ₦60
D. ₦80
Question 5
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is P = 20, what is the firm's current quantity demanded?
A. 40
B. 60
C. 80
D. 100
Question 6
In a warehouse with a capacity of 10,000 units, the inventory turnover ratio is 5 times per year. If the cost of goods sold is ₦1,200,000, what is the total value of inventory at the beginning of the year?
A. ₦2,400,000
B. ₦1,200,000
C. ₦600,000
D. ₦300,000
Question 7
A sole trader's business is considered a separate legal entity from its owner. However, in the event of a lawsuit, the owner's personal assets may be at risk. Which of the following best describes this situation?
A. Separate legal entity with limited liability
B. Separate legal entity with unlimited liability
C. No separate legal entity with unlimited liability
D. No separate legal entity with limited liability
Question 8
A firm's revenue function is given by R(x) = 100x - 2x^2. If the firm's marginal revenue is 50, what is the value of x?
A. 10
B. 20
C. 30
D. 40
Question 9
A sole trader, Mr. A, has a business that generates an average monthly revenue of ₦500,000. His average monthly fixed expenses are ₦200,000, and his average monthly variable expenses are ₦150,000. If he wants to save ₦100,000 per month, what is the minimum monthly sales required?
A. ₦750,000
B. ₦800,000
C. ₦850,000
D. ₦900,000
Question 10
A warehouse manager is responsible for maintaining an accurate inventory of goods. If the inventory is not up-to-date, the company may experience stockouts or overstocking. Which of the following best describes this situation?
A. Just-in-time inventory management
B. Economic order quantity
C. Inventory turnover
D. ABC analysis
Question 11
A company's production process involves the use of specialized machinery. If the machinery breaks down, the company may experience a significant loss of productivity. Which of the following best describes this situation?
A. Economies of scale
B. Diseconomies of scale
C. Specialization
D. Product differentiation
Question 12
A consumer has a budget of ₦1,000 and a preference for two goods, A and B. The prices of the goods are ₦200 and ₦300, respectively. If the consumer spends all of their budget on the two goods, what is the maximum amount of good B that the consumer can buy?
A. 2
B. 3
C. 4
D. 5
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 in this market?
A. ₦100 and 100 units
B. ₦120 and 80 units
C. ₦150 and 60 units
D. ₦180 and 40 units
Question 14
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will
A. decrease
B. increase
C. remain constant
D. move in the opposite direction
Question 15
A company has two production units: Unit A and Unit B. Unit A produces 80% of the total output, while Unit B produces 20%. If Unit A's production cost is ₦120 per unit and Unit B's production cost is ₦180 per unit, what is the total production cost of 1,000 units?
A. ₦120,000
B. ₦144,000
C. ₦180,000
D. ₦216,000

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