Practice post utme lautech commerce 2018 Past Questions

Question 1

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?

Correct A. ₦100, 100 units

B. ₦200, 200 units

C. ₦50, 50 units

D. ₦150, 150 units

Correct Answer: A

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Question 2

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%

Correct B. 10%

C. 15%

D. 20%

Correct Answer: B

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Question 3

A firm has a cost function C = 100 + 2L + 3K, where C is cost, L is labor, and K is capital. If labor increases by 10% and capital remains constant, what is the percentage change in cost?

A. 5%

Correct B. 10%

C. 15%

D. 20%

Correct Answer: B

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Question 4

A company has a revenue function R = 100Q - 2Q^2, where R is revenue and Q is output. What is the maximum revenue?

A. ₦1000

Correct B. ₦2000

C. ₦3000

D. ₦4000

Correct Answer: B

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Question 5

A firm 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%

Correct B. 10%

C. 15%

D. 20%

Correct Answer: B

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Question 6

A company is considering two different warehouse layouts for its new distribution center. Layout A is a traditional linear layout with a high degree of automation, while Layout B is a more flexible and adaptable layout with a lower degree of automation. Which of the following is a potential advantage of Layout B?

A. Increased labor costs

B. Improved product quality

Correct C. Enhanced flexibility and adaptability

D. Reduced storage capacity

Correct Answer: C

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Question 7

A consumer purchases a product online and is not satisfied with its quality. The consumer files a complaint with the company, but the company refuses to provide a refund or replacement. What type of law is applicable in this situation?

A. Contract law

B. Tort law

Correct C. Consumer protection law

D. Employment law

Correct Answer: C

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Question 8

A company uses a just-in-time (JIT) inventory system to manage its supply chain. What is the primary advantage of this system?

Correct A. Reduced inventory costs

B. Improved product quality

C. Enhanced flexibility and adaptability

D. Increased lead times

Correct Answer: A

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Question 9

A company is considering the use of a third-party logistics (3PL) provider to manage its transportation and warehousing needs. What are the primary benefits of using a 3PL provider?

A. Reduced transportation costs

B. Improved product quality

Correct C. Enhanced flexibility and adaptability

D. Increased lead times

Correct Answer: C

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Question 10

A company uses a total quality management (TQM) approach to manage its quality control processes. What is the primary goal of TQM?

A. Reduced costs

B. Improved product quality

Correct C. Enhanced customer satisfaction

D. Increased market share

Correct Answer: C

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Question 11

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.

Correct 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.

Correct Answer: B

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Question 12

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

Correct B. L = 50, K = 200

C. L = 200, K = 50

D. L = 100, K = 50

Correct Answer: B

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Question 13

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

Correct B. X = 3, Y = 2

C. X = 4, Y = 1

D. X = 1, Y = 4

Correct Answer: B

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Question 14

A firm's cost function is given by C = 2L + 3K, where C is the cost, 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 minimum cost?

A. ₦2000

Correct B. ₦2500

C. ₦3000

D. ₦3500

Correct Answer: B

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Question 15

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

Correct C. ₦250

D. ₦300

Correct Answer: C

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Question 16

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

Correct B. L = 50, K = 200

C. L = 200, K = 50

D. L = 100, K = 50

Correct Answer: B

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Question 17

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

Correct B. X = 3, Y = 2

C. X = 4, Y = 1

D. X = 1, Y = 4

Correct Answer: B

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Question 18

In a perfectly competitive market, the law of diminishing marginal utility implies that the demand curve for a firm's product is:

Correct A. A downward-sloping curve

B. A horizontal line

C. A vertical line

D. An upward-sloping curve

Correct Answer: A

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Question 19

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

Correct B. 2.5

C. 3.5

D. 4.5

Correct Answer: B

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Question 20

A consumer's indifference curve is given by U = 2x + 3y. If the consumer's current consumption is (x, y) = (2, 3), what is the marginal rate of substitution?

A. 1/2

Correct B. 1

C. 2

D. 3

Correct Answer: B

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Question 21

A firm's cost function is given by C = 2L + 3K. If the firm's current inputs are L = 4 and K = 9, what is the total cost?

A. ₦18

B. ₦24

Correct C. ₦30

D. ₦36

Correct Answer: C

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Question 22

A consumer's budget constraint is given by P_x x + P_y y = I. If the consumer's current prices are P_x = ₦2 and P_y = ₦3, and the consumer's income is ₦12, what is the consumer's optimal bundle?

A. (2, 4)

Correct B. (3, 3)

C. (4, 2)

D. (5, 1)

Correct Answer: B

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Question 23

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

Correct D. Reduced product variety

Correct Answer: D

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Question 24

A company exports goods to a foreign country. What is the term for the process of exchanging goods or services for money?

A. Importation

B. Exportation

C. Trade

Correct D. Foreign exchange

Correct Answer: D

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Question 25

A marketing strategy involves creating a sense of urgency to encourage customers to make a purchase. What is the term for this strategy?

A. Scarcity

B. Perceived value

Correct C. Limited-time offer

D. Price elasticity

Correct Answer: C

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