POST UTME IMS U 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
In a perfectly competitive market, the supply curve is typically represented by a:
A. Horizontal Line
B. U-Shaped Curve
C. Vertical Line
D. Inclined Line
Question 2
A company's sole trader is liable for all debts incurred by the business. What is the name of this type of liability?
A. Unlimited liability
B. Limited liability
C. Joint and several liability
D. Personal liability
Question 3
A company's supply chain involves multiple stakeholders, including suppliers, manufacturers, and distributors. Which of the following is an example of a supply chain risk?
A. A supplier's inability to meet demand.
B. A manufacturer's failure to deliver products on time.
C. A distributor's inability to transport products.
D. A customer's dissatisfaction with the product.
Question 4
A firm's marketing strategy involves targeting a specific demographic. The firm's advertising campaign focuses on this demographic, using language and imagery that resonates with them. Which of the following is an example of a marketing mix element?
A. Product
B. Price
C. Promotion
D. Place
Question 5
The concept of 'sunk cost' is most relevant in the context of:
A. Opportunity Cost
B. Sunk Cost
C. Marginal Cost
D. Average Cost
Question 6
A firm has a revenue function given by R = 2x^2 - 3x + 5, where x is the number of units sold. If the firm sells 5 units, what is the marginal revenue?
A. 10
B. 15
C. 20
D. 25
Question 7
A firm's production function is given by Q = 2L^0.5 * K^0.5. If the firm's current output is 16 units and the wage rate is ₦100 per hour, what is the minimum amount of capital required to produce this output?
A. ₦2000
B. ₦2500
C. ₦3000
D. ₦3500
Question 8
A consumer protection law that prohibits unfair or deceptive acts or practices in commerce is known as a(n) ______ law.
A. Consumer protection law
B. Antitrust law
C. Truth-in-advertising law
D. Deceptive business practices law
Question 9
A company is considering the introduction of a new product line. The product has a high fixed cost of ₦500,000 and a variable cost of ₦100 per unit. If the selling price is ₦150 per unit, what is the contribution margin per unit?
A. ₦50
B. ₦50
C. ₦50
D. ₦50
Question 10
A firm has a production function given by Q = 2L^2 + 3K, where Q is the output, L is the labor and K is the capital. If the firm uses 4 units of labor and 5 units of capital, what is the output?
A. 10
B. 15
C. 20
D. 25
Question 11
A company's financial statements are audited annually. The auditor's report states that the company's financial position is 'fairly presented' but notes that the company's management has not provided sufficient evidence to support the valuation of its assets. Which of the following is the most appropriate response by the auditor?
A. The auditor should express a qualified opinion.
B. The auditor should express an adverse opinion.
C. The auditor should express a disclaimer of opinion.
D. The auditor should express an unqualified opinion.
Question 12
A company is considering two different production methods for a new product. Method A requires an initial investment of ₦100,000 and produces 100 units per day, while Method B requires an initial investment of ₦200,000 and produces 200 units per day. If the company wants to produce 500 units per day, which method should it choose?
A. Method A, because it requires a lower initial investment
B. Method B, because it produces more units per day
C. Method A, because it produces more units per day
D. Method B, because it requires a lower initial investment
Question 13
A firm's production function is given by Q = 2L^0.5 * K^0.5. If the firm's current output is 16 units and the wage rate is ₦100 per hour, what is the minimum amount of capital required to produce this output?
A. ₦2000
B. ₦2500
C. ₦3000
D. ₦3500
Question 14
A company has two warehouses, A and B, with capacities of 1000 and 500 units, respectively. Warehouse A has a storage cost of ₦5 per unit, while Warehouse B has a storage cost of ₦10 per unit. If the company wants to store 1200 units, how much will it cost to store these units?
A. ₦6000
B. ₦6500
C. ₦7000
D. ₦7500
Question 15
A company has a cost function given by C = 2x^2 + 3x + 5, where x is the number of units produced. If the company produces 5 units, what is the cost?
A. 10
B. 15
C. 20
D. 25

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