POST UTME FUTO 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering two different modes of transportation for its goods: road and rail. The cost of transporting goods by road is ₦500 per kilometer, while the cost of transporting goods by rail is ₦300 per kilometer. If the company needs to transport 1000 kilometers of goods, what is the total cost of transportation by road and rail?
A. ₦500,000
B. ₦300,000
C. ₦700,000
D. ₦800,000
Question 2
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will
A. decrease
B. increase
C. remain constant
D. become irrelevant
Question 3
The diagram below represents a perfectly competitive market.
A. True
B. False
C. It represents a monopoly
D. It represents an oligopoly
Question 4
A company has a warehouse with a capacity to store 10,000 units of a product. The company orders 8,000 units from a supplier and receives 5,000 units in the first shipment. If the supplier takes 3 days to deliver the remaining 3,000 units, and the company uses 200 units per day, what is the maximum number of days the company can delay receiving the remaining shipment without running out of stock?
A. 10 days
B. 12 days
C. 15 days
D. 18 days
Question 5
A country's balance of payments (BOP) accounts are in equilibrium when the current account is equal to the capital account. Explain how this equilibrium is achieved.
A. When the current account is equal to the capital account, the country's net foreign assets are zero.
B. When the current account is equal to the capital account, the country's exchange rate is fixed.
C. When the current account is equal to the capital account, the country's trade deficit is zero.
D. When the current account is equal to the capital account, the country's trade surplus is zero.
Question 6
A company's break-even point is the point at which its total revenue equals its total fixed costs.
A. True
B. False
C. It depends on the market demand
D. It depends on the company's pricing strategy
Question 7
The concept of comparative advantage is relevant in international trade.
A. True
B. False
C. It is only relevant in absolute advantage
D. It is only relevant in absolute disadvantage
Question 8
The Central Bank of Nigeria (CBN) uses the following monetary policy tools to control inflation. Which one is NOT a primary tool?
A. Open Market Operations (OMO)
B. Reserve Requirements
C. Credit Controls
D. Fiscal Policy
Question 9
A firm is considering investing in a new project that has a probability of success of 0.6 and a probability of failure of 0.4. If the project's expected return is ₦100,000 and its expected cost is ₦80,000, what is the expected value of the project?
A. ₦20,000
B. ₦40,000
C. ₦60,000
D. ₦80,000
Question 10
A firm has a demand function given by P = 100 - 2Q . If the firm produces 20 units of output, what is the total revenue?
A. ₦1000
B. ₦1200
C. ₦1400
D. ₦1600
Question 11
In a perfectly competitive market, the supply curve is determined by the marginal cost curve. What is the shape of the marginal cost curve in the short run?
A. Increasing
B. Decreasing
C. Constant
D. U-shaped
Question 12
A company's financial statements are audited by an independent auditor to ensure that they are accurate and reliable. What is the purpose of auditing?
A. To detect fraud and errors
B. To ensure compliance with laws and regulations
C. To provide assurance to stakeholders
D. To increase revenue
Question 13
A firm is considering two production methods: one that requires an initial investment of ₦1,000,000 and generates a profit of ₦200,000 per year, and another that requires an initial investment of ₦500,000 and generates a profit of ₦150,000 per year. Which method should the firm choose if it expects to operate for 5 years?
A. The first method.
B. The second method.
C. Both methods are equally profitable.
D. Neither method is profitable.
Question 14
In a perfectly competitive market, the law of diminishing marginal utility implies that the marginal utility of the last unit of a good consumed is always greater than the marginal utility of the last unit of a good produced.
A. True
B. False
C. It depends on the market structure
D. It depends on the consumer's income
Question 15
A consumer protection agency receives a complaint from a customer who purchased a defective product. The agency investigates and finds that the product was indeed defective. What is the next step the agency should take?
A. Compensate the customer
B. Order the manufacturer to recall the product
C. Fine the manufacturer
D. Close the case

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