POST UTME FUTO 2021 Commerce | Objective

Are you preparing for POST UTME FUTO exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2021 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
In a perfectly competitive market, the demand curve for a firm's product is its
Correct A. marginal revenue curve
B. marginal cost curve
C. average revenue curve
D. average cost curve

Correct Answer: A

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Question 2
A company's sole trader is responsible for all the profits and losses of the business. What is the name of this type of business?
A. Partnership
B. Limited Liability Company
Correct C. Sole Trader
D. Cooperative Society

Correct Answer: C

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Question 3
A consumer protection agency is responsible for enforcing laws that protect consumers from unfair business practices. What is the name of this type of agency?
A. Consumer Protection Agency
B. Fair Trade Commission
Correct C. Competition and Consumer Protection Commission
D. National Consumer Protection Board

Correct Answer: C

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Question 4
A bank's reserve requirement is the minimum amount of funds that it must hold in reserve against deposits. What is the name of this type of requirement?
Correct A. Reserve Requirement
B. Capital Adequacy Requirement
C. Liquidity Requirement
D. Risk-Based Capital Requirement

Correct Answer: A

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Question 5
A company's marketing strategy is focused on creating a strong brand identity and building customer loyalty. What is the name of this type of strategy?
A. Product Differentiation Strategy
B. Market Segmentation Strategy
Correct C. Brand Management Strategy
D. Customer Relationship Management Strategy

Correct Answer: C

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Question 6
A firm's production function is given by Q = 100K^(1/2)L^(1/2), where Q is output, K is capital, and L is labor. If the firm's capital is increased by 25% and labor remains constant, what is the new output?
A. 125
Correct B. 150
C. 175
D. 200

Correct Answer: B

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Question 7
A company has two warehouses, A and B, with capacities of 1000 and 500 units, respectively. Warehouse A has 800 units of stock, while Warehouse B has 200 units of stock. If 300 units are transferred from Warehouse A to Warehouse B, what is the new total capacity of Warehouse A?
Correct A. 700
B. 800
C. 900
D. 1000

Correct Answer: A

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Question 8
A firm's revenue function is given by R(x) = 100x - 2x^2, where x is the number of units sold. If the firm sells 20 units, what is the total revenue?
A. 1500
Correct B. 1600
C. 1700
D. 1800

Correct Answer: B

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Question 9
A company has a production process that requires 2 hours of labor and 1 hour of capital. If the company has 8 hours of labor and 4 hours of capital available, what is the maximum number of units that can be produced?
A. 4
B. 6
Correct C. 8
D. 10

Correct Answer: C

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Question 10
A firm's cost function is given by C(x) = 50 + 2x^2, where x is the number of units produced. If the firm produces 5 units, what is the total cost?
A. 70
B. 80
Correct C. 90
D. 100

Correct Answer: C

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Question 11
A company's sole trader has a warehouse with a capacity of 10,000 units. If the company's average daily sales are 200 units, and the stock level is currently at 50% capacity, what is the minimum number of days the company can maintain its current sales rate without running out of stock?
A. 20 days
B. 30 days
Correct C. 40 days
D. 50 days

Correct Answer: C

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Question 12
A company has a warehouse with a capacity of 10,000 units. If the company's average daily sales are 200 units, and the stock level is currently at 50% capacity, what is the minimum number of days the company can maintain its current sales rate without running out of stock?
A. 20 days
B. 30 days
Correct C. 40 days
D. 50 days

Correct Answer: C

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Question 13
A company has a warehouse with a capacity of 10,000 units. If the company's average daily sales are 200 units, and the stock level is currently at 50% capacity, what is the minimum number of days the company can maintain its current sales rate without running out of stock?
A. 20 days
B. 30 days
Correct C. 40 days
D. 50 days

Correct Answer: C

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Question 14
A company has a warehouse with a capacity of 10,000 units. If the company's average daily sales are 200 units, and the stock level is currently at 50% capacity, what is the minimum number of days the company can maintain its current sales rate without running out of stock?
A. 20 days
B. 30 days
Correct C. 40 days
D. 50 days

Correct Answer: C

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Question 15
A company has a warehouse with a capacity of 10,000 units. If the company's average daily sales are 200 units, and the stock level is currently at 50% capacity, what is the minimum number of days the company can maintain its current sales rate without running out of stock?
A. 20 days
B. 30 days
Correct C. 40 days
D. 50 days

Correct Answer: C

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Question 16
A company is considering a new marketing strategy that involves partnering with a popular social media influencer. The influencer has a large following and is known for promoting products that align with the company's brand values. However, the company is concerned about the potential risks associated with partnering with an influencer, including the risk of reputational damage if the influencer promotes a product that is not aligned with the company's values. Which of the following is the most appropriate risk management strategy for the company?
Correct A. Negotiating a contract with the influencer that includes a clause requiring the influencer to promote only products that align with the company's values
B. Conducting a thorough background check on the influencer to ensure they have a good reputation and are not associated with any negative brands
C. Requiring the influencer to disclose any potential conflicts of interest or affiliations with competing brands
D. Not partnering with the influencer at all due to the potential risks

Correct Answer: A

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Question 17
A consumer purchases a product online and receives a defective item. The consumer contacts the company's customer service department and is told that the company's return policy requires the consumer to pay for return shipping. However, the consumer believes that the company's return policy is unfair and is seeking a refund. Which of the following is the most appropriate course of action for the consumer?
Correct A. Filing a complaint with the Federal Trade Commission (FTC)
B. Suing the company in small claims court
C. Contacting the company's customer service department again to request a refund
D. Posting a negative review on social media

Correct Answer: A

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Question 18
A company is considering investing in a new transportation system that involves using drones to transport goods. The company is concerned about the potential risks associated with this new technology, including the risk of accidents and the risk of regulatory changes. Which of the following is the most appropriate risk management strategy for the company?
Correct A. Conducting a thorough analysis of the potential risks and benefits of the new technology
B. Developing a contingency plan in case of an accident or regulatory change
C. Requiring the manufacturer of the drones to provide a warranty and liability insurance
D. Not investing in the new technology due to the potential risks

Correct Answer: A

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Question 19
A consumer purchases a life insurance policy and pays premiums for several years. However, the consumer dies before the policy matures and the insurance company refuses to pay the death benefit. The consumer's estate sues the insurance company for breach of contract. Which of the following is the most likely outcome of the lawsuit?
Correct A. The insurance company is found liable for breach of contract and must pay the death benefit
B. The consumer's estate is found liable for non-payment of premiums and must pay the insurance company
C. The lawsuit is dismissed due to lack of evidence
D. The insurance company is found not liable for breach of contract and the consumer's estate must pay the insurance company's legal fees

Correct Answer: A

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Question 20
A company is considering forming a partnership with another company to develop a new product. The partnership agreement requires each company to contribute a certain amount of capital and to share the profits and losses equally. However, one of the companies is concerned about the potential risks associated with the partnership, including the risk of financial loss and the risk of reputational damage. Which of the following is the most appropriate risk management strategy for the company?
Correct A. Conducting a thorough analysis of the potential risks and benefits of the partnership
B. Developing a contingency plan in case of financial loss or reputational damage
C. Requiring the other company to provide a guarantee and liability insurance
D. Not forming the partnership due to the potential risks

Correct Answer: A

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Question 21
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will
A. increase
Correct B. decrease
C. remain constant
D. move in the opposite direction

Correct Answer: B

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Question 22
A company's production function is given by Q = 2L^0.5K^0.5. If the company wants to increase its output by 20% while keeping the capital stock constant, what percentage increase in labor is required?
A. 10%
Correct B. 15%
C. 20%
D. 25%

Correct Answer: B

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Question 23
A consumer has a budget constraint of 100 units of currency and faces the following prices: good A = 5 units, good B = 10 units. If the consumer's indifference curve is tangent to the budget constraint at point (20, 10), what is the marginal rate of substitution (MRS) between good A and good B?
A. 0.5
Correct B. 1
C. 2
D. 5

Correct Answer: B

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Question 24
A firm's cost function is given by C = 100 + 2L + 3K. If the firm's output is 100 units and the price of labor is 5 units per hour, what is the optimal level of capital that minimizes the firm's total cost?
A. 20
B. 30
Correct C. 40
D. 50

Correct Answer: C

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Question 25
A consumer's utility function is given by U = 2x + 3y. If the consumer's income is 100 units and the prices of good x and good y are 5 units and 10 units respectively, what is the consumer's optimal bundle of goods?
Correct A. (20, 10)
B. (30, 5)
C. (40, 0)
D. (0, 20)

Correct Answer: A

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