POST UTME ESUT 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer protection agency has received a complaint about a company's advertising practices. The company has been using a slogan that implies its product is 100% effective in treating a certain medical condition. However, the product has only been tested on a small sample size of 50 patients, and the results show that it is only 80% effective. What is the most appropriate action for the agency to take?
A. Order the company to stop using the slogan immediately
B. Require the company to conduct further testing on a larger sample size
C. Allow the company to continue using the slogan as long as it includes a disclaimer
D. Fine the company for false advertising
Question 2
In a perfectly competitive market, the supply curve is downward sloping because of the law of increasing marginal opportunity cost. What is the primary reason for this downward slope?
A. The law of diminishing marginal returns
B. The law of increasing marginal opportunity cost
C. The law of supply and demand
D. The law of diminishing marginal utility
Question 3
A company uses a just-in-time (JIT) inventory system to manage its inventory. If the company orders 100 units of a product and receives 120 units, what is the inventory level after receiving the order?
A. 80 units
B. 100 units
C. 120 units
D. 140 units
Question 4
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 consumer surplus?
A. ₦1,000
B. ₦2,000
C. ₦3,000
D. ₦4,000
Question 5
A firm is considering two marketing strategies to promote a product. Strategy A costs ₦1 million and generates 1000 leads. Strategy B costs ₦2 million and generates 2000 leads. If the firm can convert 10% of the leads into sales, what is the minimum number of days the firm must operate to break even if it chooses Strategy A?
A. 10 days
B. 15 days
C. 20 days
D. 25 days
Question 6
A company is considering the introduction of a new product line. The product line has a high initial investment cost of ₦5 million but has a potential market size of 100,000 units. The company estimates that the production cost per unit will be ₦2,500. If the company wants to achieve a profit margin of 20%, what should be the selling price of each unit?
A. ₦3,500
B. ₦3,800
C. ₦4,200
D. ₦4,500
Question 7
A company is considering the introduction of a new product line. The product line has a high initial investment cost of ₦5 million but has a potential market size of 100,000 units. The company estimates that the production cost per unit will be ₦2,500. If the company wants to achieve a profit margin of 20%, what should be the selling price of each unit?
A. ₦3,500
B. ₦3,800
C. ₦4,200
D. ₦4,500
Question 8
A firm is considering two production technologies to produce a product. Technology A requires an initial investment of ₦5 million and produces 100 units of the product per day. Technology B requires an initial investment of ₦10 million and produces 200 units of the product per day. If the firm can sell the product at ₦50 per unit, what is the minimum number of days the firm must operate to break even if it chooses Technology A?
A. 10 days
B. 15 days
C. 20 days
D. 25 days
Question 9
A consumer is considering filing a complaint against a company for a defective product. Which of the following is a key step in the complaint process?
A. Contacting the company's customer service department
B. Filing a lawsuit
C. Seeking mediation
D. Posting a negative review online
Question 10
A company uses a just-in-time (JIT) inventory system to manage its stock levels. If the company has a daily demand of 50 units of a product, and it wants to maintain a safety stock of 10 units, what is the reorder point?
A. 40
B. 50
C. 60
D. 70
Question 11
A company is considering investing in a new transport system. Which of the following is a key factor to consider when determining the feasibility of this decision?
A. The cost of the new system.
B. The potential return on investment.
C. The impact on the environment.
D. The impact on the company's reputation.
Question 12
A company has a production function given by Q = 2L^0.5K^0.5. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦200 per unit, and the company wants to maximize its profit, what is the optimal level of labor (L) and capital (K)?
A. L = 100, K = 50
B. L = 50, K = 100
C. L = 200, K = 100
D. L = 100, K = 200
Question 13
A company is considering entering into a contract with a supplier. Which of the following is a key provision that the company should include in the contract?
A. Payment terms
B. Delivery schedule
C. Warranty and liability
D. Termination clause
Question 14
A consumer is considering purchasing a product online. Which of the following is a key factor in their decision-making process?
A. Price
B. Quality
C. Convenience
D. Brand reputation
Question 15
A firm has a production function given by Q = 2L^0.5K^0.5. If the price of labor (L) is ₦100 per unit and the price of capital (K) is ₦200 per unit, and the firm wants to minimize its cost, what is the optimal level of labor (L) and capital (K)?
A. L = 100, K = 50
B. L = 50, K = 100
C. L = 200, K = 100
D. L = 100, K = 200

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