Practice post utme lead city university commerce 2022 Past Questions

Question 1

Under the Consumer Protection Act of 1999, which of the following is a fundamental right of a consumer?

A. Right to seek redress against unfair or deceptive trade practices

B. Right to compensation for any loss or injury suffered

C. Right to withdraw from a contract within a specified period

D. Right to choose between different products or services

Question 2

A company is considering the introduction of a new product line. The product line has a high fixed cost of ₦500,000 and a variable cost of ₦200 per unit. The selling price of the product is ₦300 per unit. If the company expects to sell 2,000 units, what is the minimum price at which the product should be sold to break even?

A. ₦250

B. ₦275

C. ₦300

D. ₦325

Question 3

A firm is considering two different marketing strategies to promote its new product. Strategy A involves a ₦500,000 advertising campaign and is expected to increase sales by 10%. Strategy B involves a ₦750,000 advertising campaign and is expected to increase sales by 15%. If the firm expects to sell 5,000 units of the product, which strategy should it choose?

A. Strategy A

B. Strategy B

C. Both strategies are equally effective

D. Neither strategy is effective

Question 4

A firm is considering two different pricing strategies to sell its product. Strategy A involves a price of ₦500 per unit and is expected to result in a profit of ₦100 per unit sold. Strategy B involves a price of ₦600 per unit and is expected to result in a profit of ₦150 per unit sold. If the firm expects to sell 5,000 units of the product, which strategy should it choose?

A. Strategy A

B. Strategy B

C. Both strategies are equally profitable

D. Neither strategy is profitable

Question 5

A company is considering two different production processes to manufacture a new product. Process A requires an initial investment of ₦1,500,000 and has a variable cost of ₦200 per unit. Process B requires an initial investment of ₦2,000,000 and has a variable cost of ₦150 per unit. If the company expects to sell 10,000 units of the product, which process should it choose?

A. Process A

B. Process B

C. Both processes are equally profitable

D. Neither process is profitable

Question 6

A firm has a warehouse with a capacity of 1,000 units. If it receives a shipment of 500 units, what is the new capacity?

A. 500

B. 1,000

C. 1,500

D. 2,000

Question 7

A company is considering two marketing strategies: a mass marketing approach and a niche marketing approach. Which strategy is more likely to result in higher customer satisfaction?

A. Mass marketing

B. Niche marketing

C. Both are equally effective

D. Neither is effective

Question 8

A company exports 100 units of goods to a foreign country. If the exchange rate is 1 USD = 500 NGN, and the company earns a profit of 10% on the sale, what is the total revenue in NGN?

A. 500000

B. 550000

C. 600000

D. 650000

Question 9

A consumer has the following budget constraint: 2X + 3Y = 100. The consumer's indifference curves are given by U = 2X^0.5Y^0.5. If the consumer is initially at point (20, 20), what is the new point on the indifference curve that the consumer will move to if the price of good X increases by 20%?

A. (15, 25)

B. (20, 20)

C. (25, 15)

D. (30, 10)

Question 10

In a perfectly competitive market, the supply curve is downward sloping because of the law of increasing opportunity costs. However, in a monopoly market, the supply curve is upward sloping. What is the main reason for this difference?

A. The monopolist has complete control over the market and can influence the price.

B. The monopolist has a fixed cost that increases as output increases.

C. The monopolist has a decreasing marginal cost that increases as output increases.

D. The monopolist has a fixed supply of resources that decreases as output increases.

Question 11

A bank is considering offering a new credit card product. The product will have an annual fee of ₦10,000 and an interest rate of 20% per annum. What is the effective annual interest rate of the product?

A. 20%

B. 21%

C. 22%

D. 23%

Question 12

A company is considering two different marketing strategies: a push strategy and a pull strategy. Which strategy is more likely to be effective in a market where the consumer is highly knowledgeable about the product?

A. Push strategy

B. Pull strategy

C. Both strategies are equally effective

D. Neither strategy is effective

Question 13

A company is considering the introduction of a new product line. The product line has a high fixed cost of ₦1,250,000 and a variable cost of ₦300 per unit. The selling price of the product is ₦400 per unit. If the company expects to sell 4,000 units, what is the minimum price at which the product should be sold to break even?

A. ₦275

B. ₦300

C. ₦325

D. ₦350

Question 14

A consumer has the following utility function: U = 2X^0.5Y^0.5. The consumer's budget constraint is given by 2X + 3Y = 100. If the consumer is initially at point (20, 20), what is the new point on the indifference curve that the consumer will move to if the price of good Y increases by 20%?

A. (15, 25)

B. (20, 20)

C. (25, 15)

D. (30, 10)

Question 15

In a perfectly competitive market, the law of diminishing marginal utility states that as the quantity of a good consumed increases, the marginal utility derived from each additional unit consumed will eventually decrease. What is the primary reason for this decrease in marginal utility?

A. The law of diminishing marginal utility is a result of the satiation of consumer desires.

B. As the quantity of the good consumed increases, the consumer's income effect decreases.

C. The marginal utility of each additional unit consumed decreases due to the law of diminishing returns.

D. The marginal utility of each additional unit consumed decreases due to the law of supply and demand.

POST UTME LEAD CITY UNIVERSITY 2022 Commerce | Objective

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