Practice post utme futa commerce 2023 Past Questions

Question 1

In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing

Correct A. marginal opportunity cost

B. marginal benefit

C. marginal utility

D. marginal revenue

Correct Answer: A

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Question 2

The following diagram shows the demand and supply curves for a competitive market. If the price of the good increases from P1 to P2, what will happen to the equilibrium quantity?

A. Increase

Correct B. Decrease

C. Remain the same

D. Become negative

Correct Answer: B

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Question 3

A company has a market share of 30% in the industry. If the industry growth rate is 5%, what is the company's expected growth rate?

A. 10%

Correct B. 15%

C. 20%

D. 25%

Correct Answer: B

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Question 4

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, how many units of labor (L) and capital (K) should it hire?

A. L = 4, K = 4

Correct B. L = 8, K = 2

C. L = 2, K = 8

D. L = 16, K = 1

Correct Answer: B

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Question 5

A firm's demand function is given by P = 100 - 2Q. If the firm wants to maximize its profit, how many units of output should it produce?

A. 10

B. 20

Correct C. 30

D. 40

Correct Answer: C

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Question 6

A company has a production function given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the labor input, and K is the capital input. If the company increases its labor input by 20% and capital input by 15%, what is the percentage change in the quantity produced?

A. 10%

B. 12%

Correct C. 15%

D. 18%

Correct Answer: C

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Question 7

A firm is considering two mutually exclusive projects, A and B. Project A has a net present value (NPV) of ₦100,000 and a probability of success of 0.8, while project B has an NPV of ₦120,000 and a probability of success of 0.6. Which project should the firm choose?

Correct A. Project A

B. Project B

C. Both projects are equally attractive

D. Neither project is attractive

Correct Answer: A

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Question 8

A warehouse has a storage capacity of 10,000 units. The warehouse is currently 70% full. If 500 units are added to the warehouse, what is the new percentage of the warehouse that is full?

A. 60%

Correct B. 65%

C. 70%

D. 75%

Correct Answer: B

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Question 9

A bank has a loan portfolio with a total value of ₦500,000,000. The bank's risk-weighted assets (RWAs) are 80% of the total loan portfolio. If the bank's capital requirement is 10% of the RWAs, what is the minimum capital the bank must hold?

Correct A. ₦40,000,000

B. ₦50,000,000

C. ₦60,000,000

D. ₦70,000,000

Correct Answer: A

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Question 10

A firm is considering a new product launch. The firm's marketing manager estimates that the product will sell 10,000 units in the first year, with a revenue of ₦100 per unit. The firm's production costs are ₦50 per unit, and the firm's fixed costs are ₦500,000. What is the firm's expected profit from the product launch?

A. ₦750,000

Correct B. ₦850,000

C. ₦950,000

D. ₦1,050,000

Correct Answer: B

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Question 11

A firm's marketing strategy involves creating a unique selling proposition (USP) to differentiate its product from competitors. Which of the following is a characteristic of a USP?

Correct A. It is a statement that highlights the product's features and benefits

B. It is a statement that emphasizes the product's price advantage

C. It is a statement that focuses on the product's quality

D. It is a statement that emphasizes the product's brand name

Correct Answer: A

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Question 12

A company is considering implementing a just-in-time (JIT) inventory system. Which of the following is a benefit of JIT?

Correct A. Reduced inventory costs

B. Improved product quality

C. Increased flexibility in production

D. Enhanced customer service

Correct Answer: A

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Question 13

A bank is considering offering a new credit card product. Which of the following is a key factor in determining the interest rate for the credit card?

Correct A. The bank's target profit margin

B. The credit card holder's credit score

C. The credit card holder's income level

D. The credit card holder's employment status

Correct Answer: A

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Question 14

A logistics company is considering investing in a new transportation mode. Which of the following is a key consideration in evaluating the feasibility of the investment?

A. The initial investment cost

Correct B. The potential return on investment

C. The impact on the company's carbon footprint

D. The potential impact on the company's brand reputation

Correct Answer: B

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Question 15

A marketing manager is considering launching a new product. Which of the following is a key factor in determining the product's pricing strategy?

A. The product's target market

Correct B. The product's life cycle stage

C. The product's competition

D. The product's production costs

Correct Answer: B

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Question 16

A sole trader's business is not registered with the Corporate Affairs Commission (CAC). What is the legal implication of this?

A. The sole trader is exempt from paying taxes.

B. The sole trader is not liable for any business debts.

Correct C. The sole trader's business is not recognized by law.

D. The sole trader cannot sue or be sued in a court of law.

Correct Answer: C

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Question 17

A company's Memorandum and Articles of Association are not filed with the Corporate Affairs Commission (CAC). What is the legal implication of this?

Correct A. The company is not recognized by law.

B. The company's shareholders are not protected.

C. The company's directors are not liable for any business debts.

D. The company's business is not valid.

Correct Answer: A

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Question 18

A company's Articles of Association state that the company's business is to manufacture and sell textiles. However, the company starts manufacturing and selling electronics. What is the legal implication of this?

A. The company's business is still valid.

B. The company's shareholders are not protected.

C. The company's directors are liable for any business debts.

Correct D. The company's business is not valid.

Correct Answer: D

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Question 19

A company's Memorandum of Association states that the company's business is to manufacture and sell textiles. However, the company starts manufacturing and selling electronics. What is the legal implication of this?

A. The company's business is still valid.

B. The company's shareholders are not protected.

C. The company's directors are liable for any business debts.

Correct D. The company's business is not valid.

Correct Answer: D

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Question 20

A company's Articles of Association state that the company's business is to manufacture and sell textiles. However, the company starts manufacturing and selling electronics. What is the legal implication of this?

A. The company's business is still valid.

B. The company's shareholders are not protected.

C. The company's directors are liable for any business debts.

Correct D. The company's business is not valid.

Correct Answer: D

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Question 21

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's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?

A. 5%

B. 10%

Correct C. 12%

D. 15%

Correct Answer: C

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Question 22

A company's stock is currently trading at ₦120 per share. If the company announces a 2-for-1 stock split, what will be the new stock price?

A. ₦60

Correct B. ₦80

C. ₦100

D. ₦120

Correct Answer: B

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Question 23

A consumer's indifference curve is given by the equation U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦100 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?

Correct A. (10, 5)

B. (5, 10)

C. (15, 3)

D. (3, 15)

Correct Answer: A

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Question 24

A firm's cost function is given by C = 2L + 3K, where C is cost, L is labor, and K is capital. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in cost?

A. 5%

B. 10%

Correct C. 12%

D. 15%

Correct Answer: C

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Question 25

A company's revenue function is given by R = 2x^2 - 3x + 1, where x is the quantity sold. If the company sells 10 units, what is the revenue?

A. ₦41

B. ₦43

Correct C. ₦45

D. ₦47

Correct Answer: C

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POST UTME FUTA 2023 Commerce | Objective

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