POST UTME FUTA 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is considering exporting its product to a foreign market. The firm's marketing manager has estimated that the demand for the product in the foreign market is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm wants to maximize its revenue, what price should it charge for the product?
A. P = 20
B. P = 30
C. P = 40
D. P = 50
Question 2
The concept of 'caveat emptor' is a fundamental principle in consumer protection. What does this Latin phrase mean, and how does it relate to the rights of consumers in Nigeria?
A. Let the buyer beware, and it implies that consumers have no rights in Nigeria.
B. Let the buyer beware, and it implies that consumers have limited rights in Nigeria.
C. Let the seller beware, and it implies that consumers have full rights in Nigeria.
D. Let the consumer beware, and it implies that consumers have no rights in Nigeria.
Question 3
A company is considering the purchase of a new piece of equipment. The equipment will cost ₦1,000,000 and will have a useful life of 5 years. What is the annual depreciation expense on the equipment?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 4
A company's insurance policy covers losses due to fire, theft, and liability. Which of the following types of insurance is most relevant to this policy?
A. Property Insurance
B. Liability Insurance
C. Casualty Insurance
D. Workers' Compensation Insurance
Question 5
In a perfectly competitive market, the supply curve is perfectly elastic. What is the implication of this on the price elasticity of demand?
A. The price elasticity of demand is perfectly inelastic.
B. The price elasticity of demand is perfectly elastic.
C. The price elasticity of demand is unit elastic.
D. The price elasticity of demand is not affected.
Question 6
A sole trader is considering expanding its business by hiring additional staff. The sole trader currently earns a profit of ₦100,000 per month and expects to increase its profit by ₦20,000 per month for each additional staff member hired. If the sole trader wants to increase its profit by ₦100,000 per month, how many additional staff members should it hire?
A. 2 staff members
B. 3 staff members
C. 4 staff members
D. 5 staff members
Question 7
A company is considering two different insurance policies to protect its business against risks. Policy A has a premium of ₦50,000 per year and provides a maximum payout of ₦200,000 in the event of a loss. Policy B has a premium of ₦30,000 per year and provides a maximum payout of ₦300,000 in the event of a loss. If the company expects to incur a loss of ₦250,000, which policy should it choose?
A. Policy A
B. Policy B
C. Both policies are equally cost-effective
D. More information is needed to make a decision
Question 8
A warehouse manager wants to store 500 boxes of goods in a warehouse with a capacity of 2,000 boxes. The warehouse has a storage area of 10m x 5m. What is the maximum number of boxes that can be stored per square meter?
A. 10 boxes/m²
B. 20 boxes/m²
C. 30 boxes/m²
D. 40 boxes/m²
Question 9
A firm's foreign exchange risk arises from fluctuations in the exchange rate between the naira and the US dollar. Which of the following hedging strategies is most effective in managing this risk?
A. Forward Contract
B. Futures Contract
C. Options Contract
D. Swap Contract
Question 10
A bank has a reserve requirement of 20% and a cash reserve of ₦100,000. If the bank wants to increase its cash reserve by 10%, what is the new cash reserve?
A. ₦110,000
B. ₦120,000
C. ₦130,000
D. ₦140,000
Question 11
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current inputs are L = 4 and K = 9, what is the marginal product of labor?
A. 1.5
B. 2
C. 3
D. 4
Question 12
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current inputs are L = 4 and K = 9, what is the marginal product of capital?
A. 1.5
B. 2
C. 3
D. 4
Question 13
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm wants to produce 16 units of output, how many units of labor are required if K = 4?
A. 4
B. 8
C. 16
D. 32
Question 14
A company exports goods worth ₦5,000,000 to a foreign country. The exchange rate is 1 USD = ₦500. What is the value of the goods in USD?
A. ₦10,000
B. ₦5,000
C. ₦2,500
D. ₦1,250
Question 15
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is P = 20, what is the price elasticity of demand?
A. -1
B. -2
C. -3
D. -4

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