POST UTME LAUTECH 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm's demand function is given by Q = 100 - 2P. If the firm wants to maximize its revenue, what price should it charge for its product?
A. ₦20
B. ₦30
C. ₦40
D. ₦50
Question 2
A firm specializes in producing a single product. Which of the following is a characteristic of specialization?
A. Increased production costs
B. Reduced production costs
C. Increased product variety
D. Reduced product variety
Question 3
A company uses a just-in-time (JIT) inventory system to manage its supply chain. What is the primary advantage of this system?
A. Reduced inventory costs
B. Improved product quality
C. Enhanced flexibility and adaptability
D. Increased lead times
Question 4
A consumer has a budget of ₦1000 and wants to buy two goods, X and Y. The prices of the goods are ₦200 and ₦300 respectively. If the consumer's indifference curve is given by U = 2X^0.5Y^0.5, and the consumer is indifferent between the following two bundles, what is the price of good X?
A. ₦150
B. ₦200
C. ₦250
D. ₦300
Question 5
A company's marketing strategy involves a mix of advertising, personal selling, and sales promotion. Which of the following is NOT a characteristic of personal selling?
A. It involves a high degree of personal interaction between the salesperson and the customer.
B. It is often used to promote new products.
C. It is a one-way communication process.
D. It is a low-cost method of promotion.
Question 6
A consumer has a budget of ₦1000 and wants to buy two goods, X and Y. The prices of the goods are ₦200 and ₦300 respectively. If the consumer's indifference curve is given by U = 2X^0.5Y^0.5, what is the optimal combination of X and Y?
A. X = 2, Y = 3
B. X = 3, Y = 2
C. X = 4, Y = 1
D. X = 1, Y = 4
Question 7
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the output, L is the labor and K is the capital. If the firm wants to produce 100 units of output, and the wage rate is ₦100 per hour, and the rental rate of capital is ₦50 per hour, what is the optimal combination of labor and capital?
A. L = 100, K = 100
B. L = 50, K = 200
C. L = 200, K = 50
D. L = 100, K = 50
Question 8
A company's marketing mix is a combination of four elements: product, price, promotion, and place. Which of the following is NOT a characteristic of a product?
A. It is a tangible good.
B. It is a service.
C. It is a necessary good.
D. It is a luxury good.
Question 9
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost compared to other countries. Which of the following is a correct example of comparative advantage?
A. Country A produces 10 units of wheat and 5 units of cloth, while Country B produces 5 units of wheat and 10 units of cloth.
B. Country A produces 10 units of wheat and 5 units of cloth, while Country B produces 15 units of wheat and 5 units of cloth.
C. Country A produces 10 units of wheat and 5 units of cloth, while Country B produces 5 units of wheat and 15 units of cloth.
D. Country A produces 10 units of wheat and 5 units of cloth, while Country B produces 10 units of wheat and 10 units of cloth.
Question 10
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will _______.
A. increase
B. decrease
C. remain constant
D. fluctuate
Question 11
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the price of labor is ₦100 per unit, while the price of capital is ₦200 per unit, what is the minimum cost of production?
A. ₦400
B. ₦800
C. ₦1200
D. ₦1600
Question 12
A company has a production function Q = 2L^0.4K^0.6, where Q is output, L is labor, and K is capital. If labor increases by 10% and capital remains constant, what is the percentage change in output?
A. 5%
B. 10%
C. 15%
D. 20%
Question 13
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the equilibrium price and quantity of a product in this market?
A. ₦100, 100 units
B. ₦200, 200 units
C. ₦50, 50 units
D. ₦150, 150 units
Question 14
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current inputs are L = 4 and K = 9, what is the marginal product of labor?
A. 1.5
B. 2.5
C. 3.5
D. 4.5
Question 15
A company's articles of association outline its management structure. Which of the following is a key feature of a company's management structure?
A. A sole director who has unlimited liability.
B. A board of directors with limited liability.
C. A single shareholder who has unlimited liability.
D. A partnership of two or more individuals with unlimited liability.

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