POST UTME OAU 2024 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering the implementation of a new production process that will reduce costs by 15% but increase lead time by 20%. What is the impact on the company's cash flow?
A. The cash flow will decrease by 10%
B. The cash flow will increase by 5%
C. The cash flow will remain unchanged
D. The cash flow will increase by 15%
Question 2
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will
A. increase
B. decrease
C. remain constant
D. shift to the left
Question 3
The concept of specialization in production refers to the process by which a firm focuses on producing a specific product or service, thereby increasing its efficiency and reducing costs. Which of the following is a characteristic of specialization in production?
A. Increased competition in the market
B. Reduced production costs
C. Improved product quality
D. Increased market share
Question 4
A firm is considering expanding its operations to a new market. Which of the following is a key consideration in the decision-making process?
A. The firm's current market share
B. The potential for increased revenue
C. The level of competition in the new market
D. The firm's production capacity
Question 5
A firm's revenue function is given by R(x) = 3x^2 - 2x + 10. If the firm produces 5 units of output, what is its marginal revenue?
A. ₦15
B. ₦20
C. ₦25
D. ₦30
Question 6
A consumer is considering purchasing a product with a 10% sales tax. The original price is ₦1,000. What is the total price paid by the consumer?
A. ₦1,100
B. ₦1,000
C. ₦1,050
D. ₦1,200
Question 7
A sole trader is a type of business organization that is owned and managed by a single individual, known as the
A. partner
B. director
C. shareholder
D. proprietor
Question 8
A sole trader's business is registered under the Companies and Allied Matters Act (CAMA) 2020. Which of the following is a characteristic of a sole trader?
A. Unlimited liability
B. Limited liability
C. Separate legal entity
D. No distinction between personal and business finances
Question 9
A firm's revenue function is given by R(Q) = 100Q - 2Q^2, where R(Q) is the total revenue and Q is the quantity produced. If the firm produces 50 units, what is the total revenue?
A. 2500
B. 2700
C. 2900
D. 3100
Question 10
A consumer's budget constraint is given by P1Q1 + P2Q2 = I, where P1 and P2 are the prices of two goods, Q1 and Q2 are the quantities consumed, and I is the consumer's income. If the prices of the two goods are 10 and 20, respectively, and the consumer's income is 100, what is the consumer's optimal bundle of goods?
A. Q1 = 5, Q2 = 2
B. Q1 = 10, Q2 = 1
C. Q1 = 15, Q2 = 0
D. Q1 = 20, Q2 = 0
Question 11
A company's marketing strategy involves creating a new product to appeal to a younger demographic. Which of the following is a characteristic of this marketing strategy?
A. Product differentiation
B. Market segmentation
C. Target marketing
D. Positioning
Question 12
A company's marketing mix consists of a product, price, place, and promotion. Which of the following is NOT a part of the marketing mix?
A. Product
B. Price
C. Place
D. Finance
Question 13
A firm is considering two different production technologies: Technology A and Technology B. The production functions for these technologies are given by Q_A = 2L^0.5 + 3K^0.5 and Q_B = 3L^0.5 + 2K^0.5. If the firm's current input levels are L = 4 and K = 9, which technology should the firm choose?
A. Technology A
B. Technology B
C. Both technologies are equally efficient
D. Neither technology is efficient
Question 14
The concept of comparative advantage is relevant in the context of
A. production and specialization
B. home and foreign trade
C. consumer protection and business law
D. banking and financial institutions
Question 15
A firm's cost function is given by C(Q) = 100 + 2Q + 0.01Q^2, where C(Q) is the total cost and Q is the quantity produced. If the firm produces 100 units, what is the total cost?
A. 1200
B. 1300
C. 1400
D. 1500

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