POST UTME FUTA 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer has a utility function given by U = 2x + 3y. If the consumer's income is ₦1000 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. x = 100, y = 50
B. x = 150, y = 25
C. x = 200, y = 0
D. x = 0, y = 100
Question 2
A firm's cost function is given by C = 2L + 3K, where C is the total cost, L is the number of labor hours, and K is the amount of capital. If the firm wants to minimize its cost, how many labor hours are required if the amount of capital is 200 units?
A. 50
B. 100
C. 200
D. 300
Question 3
A company's production process involves the use of a just-in-time (JIT) inventory system. If the company has a production cycle time of 10 days, and the lead time is 5 days, what is the company's inventory level?
A. 5 days' worth of inventory
B. 10 days' worth of inventory
C. 15 days' worth of inventory
D. 20 days' worth of inventory
Question 4
The following are the main types of business organizations: Sole Proprietorship, Partnership, Corporation, and Cooperative. Which of the following is NOT a type of business organization?
A. Sole Proprietorship
B. Partnership
C. Corporation
D. Government Agency
Question 5
A company's stock control system involves the use of a first-in-first-out (FIFO) inventory system. If the company has 100 units of a product in stock, and 20 units are sold, what is the new stock level?
A. 80 units
B. 90 units
C. 100 units
D. 120 units
Question 6
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is labor, and K is capital. If the firm wants to produce 100 units of output, and labor is fixed at 25 units, how much capital is required?
A. 25
B. 50
C. 100
D. 200
Question 7
A company is considering setting up a new business unit. Which of the following is a characteristic of a sole trader business unit?
A. A sole trader business unit is owned by a single individual
B. A sole trader business unit is owned by a partnership of individuals
C. A sole trader business unit is owned by a company
D. A sole trader business unit is owned by a government agency
Question 8
A firm's cost function is given by C = 2L + 3K. If the firm's labor input is 10 units and its capital input is 5 units, what is the firm's total cost?
A. ₦25
B. ₦30
C. ₦35
D. ₦40
Question 9
In a perfectly competitive market, the law of supply states that the quantity supplied of a good increases as the price of the good increases, ceteris paribus. However, the law of supply also states that the quantity supplied of a good decreases as the price of the good decreases, ceteris paribus. Which of the following is a correct statement regarding the law of supply?
A. The law of supply is a fundamental concept in economics that explains the relationship between the price of a good and the quantity supplied of the good.
B. The law of supply is a concept that is only applicable in perfectly competitive markets.
C. The law of supply states that the quantity supplied of a good increases as the price of the good increases, ceteris paribus.
D. The law of supply states that the quantity supplied of a good decreases as the price of the good increases, ceteris paribus.
Question 10
A company's production function is given by the Cobb-Douglas production function: Q = 10L^0.4K^0.6. If the company's labor input increases by 20% and its capital input remains constant, what is the percentage change in output?
A. 10%
B. 12%
C. 15%
D. 18%
Question 11
A consumer has a utility function given by U = 2A + 3B, where U is the total utility, A is the quantity of good A, and B is the quantity of good B. If the consumer's budget constraint is 100 units of currency and the prices of the goods are 5 units of currency for good A and 10 units of currency for good B, calculate the consumer's optimal consumption bundle.
A. The optimal consumption bundle is (20, 10).
B. The optimal consumption bundle is (10, 20).
C. The optimal consumption bundle is (15, 15).
D. The optimal consumption bundle is (5, 25).
Question 12
A consumer's utility function is given by u(x, y) = 2x + y. If the consumer's budget constraint is given by 2x + 3y = 12, what is the consumer's optimal consumption bundle?
A. (2, 4)
B. (4, 2)
C. (6, 0)
D. (0, 6)
Question 13
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 compared to other countries. 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.
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 150 units of wheat and 50 units of cloth.
Question 14
A consumer has a budget constraint of 100 units of currency and a preference for two goods, A and B. The prices of the goods are 5 units of currency for good A and 10 units of currency for good B. Using the budget constraint and the prices of the goods, calculate the consumer's indifference curve.
A. The indifference curve is a straight line with a slope of -1.
B. The indifference curve is a straight line with a slope of 1.
C. The indifference curve is a curved line with a slope that increases as the quantity of good A increases.
D. The indifference curve is a curved line with a slope that decreases as the quantity of good A increases.
Question 15
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 good X and 50 units of good Y, while Country B produces 50 units of good X and 100 units of good Y.
B. Country A produces 100 units of good X and 50 units of good Y, while Country B produces 50 units of good X and 50 units of good Y.
C. Country A produces 50 units of good X and 100 units of good Y, while Country B produces 100 units of good X and 50 units of good Y.
D. Country A produces 50 units of good X and 50 units of good Y, while Country B produces 100 units of good X and 100 units of good Y.

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