POST UTME LASU 2022 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's cost of production includes all the expenses incurred in producing a good or service. Which of the following is NOT a cost of production?
A. Fixed costs
B. Variable costs
C. Opportunity costs
D. Sunk costs
Question 2
A consumer's utility function is given by U = 2x + 3y. If the consumer's budget constraint is 100x + 50y = 1000, then the consumer's optimal consumption bundle is
A. (50, 20)
B. (20, 50)
C. (30, 30)
D. (40, 40)
Question 3
A company is considering investing in a new warehouse to increase its storage capacity. The company has the following options: to build a new warehouse, to lease a warehouse, or to outsource its storage needs to a third-party logistics provider. Which of the following is a key advantage of outsourcing storage needs?
A. Reduced capital expenditure
B. Increased storage capacity
C. Improved supply chain efficiency
D. Reduced transportation costs
Question 4
A warehouse manager wants to store 500 boxes of goods. The warehouse has a capacity of 2000 square feet. Each box occupies 0.5 square feet. What is the maximum number of boxes that can be stored in the warehouse?
A. 1000
B. 2000
C. 5000
D. 10000
Question 5
A consumer protection law that prohibits false or misleading advertising is known as
A. Deceptive Advertising Act
B. Truth-in-Advertising Act
C. Consumer Protection Act
D. Fair Trade Act
Question 6
A company's marketing strategy involves creating a brand identity that is consistent across all channels. Which of the following is a key element of a brand identity?
A. Product features
B. Packaging design
C. Brand positioning
D. Price strategy
Question 7
A firm's production function is given by Q = 2L^(1/2)K^(1/2). If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and if the firm's budget constraint is ₦10,000, then the firm's optimal input combination is
A. L = 100, K = 50
B. L = 50, K = 100
C. L = 200, K = 50
D. L = 50, K = 200
Question 8
A firm is considering two different warehouse layouts for a new product. Layout A involves a high level of automation, but it requires a significant upfront investment in machinery and equipment. Layout B involves a lower level of automation, but it requires less upfront investment. However, Layout B also requires more labor and has a higher labor cost. Which of the following is a potential disadvantage of Layout B?
A. Higher upfront investment
B. Lower labor costs
C. Increased labor requirements
D. Improved product quality
Question 9
A firm's cost function is given by C = 2L + 3K. If the firm's revenue function is given by R = 100L + 200K, then the firm's profit function is
A. P = 100L + 200K - 2L - 3K
B. P = 100L + 200K - 2L + 3K
C. P = 100L + 200K + 2L + 3K
D. P = 100L + 200K - 2L - 3K
Question 10
A firm's cash flow is the difference between its cash inflows and cash outflows. What is the name of the formula used to calculate the cash flow?
A. Cash flow = Cash inflows - Cash outflows
B. Cash flow = Cash inflows + Cash outflows
C. Cash flow = Cash inflows - Cash outflows x (1 - Tc)
D. Cash flow = Cash inflows + Cash outflows x (1 + Tc)
Question 11
A bank offers a loan of ₦500,000 at an interest rate of 10% per annum. The loan is repayable in 5 years. What is the total interest paid over the 5-year period?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 12
A consumer's indifference curve is given by U = 2x + 3y. If the consumer's budget constraint is 100x + 50y = 1000, then the consumer's optimal consumption bundle is
A. (50, 20)
B. (20, 50)
C. (30, 30)
D. (40, 40)
Question 13
A firm's revenue is calculated as the product of the price per unit and the quantity sold. If the price per unit is ₦50 and the quantity sold is 100 units, what is the total revenue?
A. ₦4000
B. ₦5000
C. ₦6000
D. ₦7000
Question 14
A company is sued for violating the Consumer Protection Act. The company's defense is that the consumer was aware of the risks associated with the product. However, the consumer claims that the company failed to provide adequate warnings. Which of the following is the most likely outcome?
A. The court will rule in favor of the company.
B. The court will rule in favor of the consumer.
C. The case will be dismissed due to lack of evidence.
D. The case will be sent back to the lower court for re-trial.
Question 15
A firm's cost of capital is the minimum return that investors demand for their investment in the firm. What is the name of the formula used to calculate the cost of capital?
A. WACC = (E/V) x Re + (D/V) x Rd x (1 - Tc)
B. WACC = (E/V) x Re + (D/V) x Rd x Tc
C. WACC = (E/V) x Re + (D/V) x Rd
D. WACC = (E/V) x Re + (D/V) x Rd x (1 + Tc)

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