POST UTME LAUTECH 2020 Commerce | Objective

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Question 1
A firm specializes in producing a single product, which is a type of commodity. The firm's production function is given by Q = 100L^0.5, where Q is the quantity produced and L is the labor input. If the firm's labor input increases by 25%, what is the percentage change in the quantity produced?
A. 6.25%
B. 12.5%
C. 25%
D. 50%
Question 2
A company's marketing strategy involves a mix of advertising and personal selling. Which of the following best describes the primary goal of this strategy?
A. To increase brand awareness
B. To generate leads
C. To build customer relationships
D. To increase sales revenue
Question 3
A consumer purchases a product from a retailer, but upon using it, discovers that it is defective. The consumer contacts the retailer, who offers a replacement or a refund. However, the consumer is not satisfied with the retailer's response and decides to take the matter to a consumer protection agency. What is the primary role of a consumer protection agency in this scenario?
A. To provide legal advice to consumers
B. To mediate disputes between consumers and retailers
C. To investigate complaints and enforce consumer rights
D. To promote consumer awareness and education
Question 4
A company uses the just-in-time inventory system. What is the primary advantage of this system?
A. Reduced inventory costs
B. Improved inventory turnover
C. Increased production capacity
D. Enhanced customer service
Question 5
A sole trader's business is affected by the following factors: market demand, competition, government policies, and technological advancements. Which of the following best describes the impact of these factors on the business?
A. The factors have a neutral impact on the business
B. The factors have a positive impact on the business
C. The factors have a negative impact on the business
D. The factors have a mixed impact on the business
Question 6
A country has a comparative advantage in producing wheat, but a disadvantage in producing rice. What is the opportunity cost of producing wheat?
A. The opportunity cost of producing wheat is the amount of rice that could be produced instead.
B. The opportunity cost of producing wheat is the amount of wheat that could be produced instead.
C. The opportunity cost of producing wheat is the amount of wheat that could be produced in another country.
D. The opportunity cost of producing wheat is the amount of rice that could be produced in another country.
Question 7
A company's financial statements show a decrease in revenue and an increase in expenses. Which of the following best describes the impact of these changes on the company's profitability?
A. The company's profitability has increased
B. The company's profitability has decreased
C. The company's profitability has remained the same
D. The company's profitability has improved
Question 8
A company is considering exporting its product to a foreign market. The company's export price is ₦200 per unit, and the foreign market price is ₦250 per unit. What is the company's export profit per unit?
A. ₦50 per unit
B. ₦75 per unit
C. ₦100 per unit
D. ₦125 per unit
Question 9
A firm uses the concept of comparative advantage to determine its production decisions. What is the primary benefit of comparative advantage?
A. Increased production efficiency
B. Improved product quality
C. Enhanced customer service
D. Reduced production costs
Question 10
A company's warehouse is stocked with 500 units of a product. The company uses the first-in-first-out (FIFO) method of inventory management. If 200 units are sold, what is the new quantity of the product in the warehouse?
A. 300
B. 400
C. 500
D. 600
Question 11
A company's articles of association outline its management structure and shareholder rights. Which of the following is a key feature of a company's articles of association?
A. The appointment of directors
B. The issuance of shares
C. The distribution of dividends
D. The winding-up of the company
Question 12
A bank's interest rate on a loan is 12% per annum. If the loan amount is ₦100,000, how much interest will be paid after 2 years?
A. ₦24,000
B. ₦24,500
C. ₦25,000
D. ₦25,500
Question 13
A company uses the following transportation costs: ₦100 per unit for transportation by road, ₦150 per unit for transportation by rail, and ₦200 per unit for transportation by air. If the company has to transport 100 units of goods, what is the total transportation cost?
A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000
Question 14
A company uses the following transportation costs: 100 for the first 100 units, 80 for the next 200 units, and 60 for the next 300 units. If the company sells 600 units, what is the total transportation cost?
A. 12,000
B. 13,000
C. 14,000
D. 15,000
Question 15
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is output, L is labor, and H is capital. If the firm increases labor from 4 to 9 units, and capital from 9 to 16 units, by how much does output increase?
A. 10%
B. 20%
C. 30%
D. 40%

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