POST UTME RSU 2020 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company is considering two different marketing strategies for promoting its products. Strategy A involves a fixed cost of 10,000 units of currency and a variable cost of 5 units of currency per unit sold. Strategy B involves a fixed cost of 20,000 units of currency and a variable cost of 2 units of currency per unit sold. If the company wants to sell 5,000 units of product, which marketing strategy should it choose?
A. Strategy A
B. Strategy B
C. Both strategies are equally profitable
D. Neither strategy is profitable
Question 2
A company has a warehouse with a capacity of 1000 units. If it receives an order for 500 units, what is the probability that the warehouse will be empty?
A. 0.5
B. 0.25
C. 0.75
D. 0.1
Question 3
A country's trade balance is given by TB = X - M, where X is the value of exports and M is the value of imports. If the country's exports are ₦100 billion and its imports are ₦120 billion, what is the trade balance?
A. ₦20 billion surplus
B. ₦20 billion deficit
C. ₦40 billion surplus
D. ₦40 billion deficit
Question 4
A consumer's indifference curve is given by U(x,y) = 2x + 3y. If the consumer's income is increased by 10%, what is the new indifference curve?
A. U(x,y) = 2.2x + 3.3y
B. U(x,y) = 2.2x + 3y
C. U(x,y) = 2x + 3.3y
D. U(x,y) = 2x + 3y
Question 5
A sole trader has a business that generates an annual profit of ₦500,000. What is the trader's tax liability?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 6
A company uses a just-in-time (JIT) inventory system. What is the primary benefit of this system?
A. Reduced inventory costs
B. Increased storage capacity
C. Improved lead times
D. Enhanced customer satisfaction
Question 7
A firm's demand function is given by P = 100 - 2Q. If the firm's marginal revenue function is MR = 200 - 4Q, what is the firm's optimal quantity?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 8
A firm's cost function is given by C(L,K) = 2L + 3K. If the firm's labor and capital are increased by 20% and 15% respectively, what is the new cost function?
A. C(L,K) = 2.4L + 3.45K
B. C(L,K) = 2.4L + 3.15K
C. C(L,K) = 2.2L + 3.45K
D. C(L,K) = 2.2L + 3.15K
Question 9
A company exports goods to a foreign country. The company uses a letter of credit to secure payment for the goods. Which of the following is a benefit of using a letter of credit?
A. It reduces the risk of non-payment
B. It increases the cost of doing business
C. It provides a guarantee of payment
D. It reduces the need for credit checks
Question 10
A firm's production function is given by Q = 3L^0.5K^0.5. If the firm wants to produce 200 units of output, and the wage rate is ₦150 per hour, what is the minimum cost of production?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 11
A consumer's budget constraint is given by P_x x + P_y y = I, where P_x and P_y are the prices of goods x and y respectively, and I is income. If the price of good x increases by 10% and the price of good y decreases by 5%, what is the new budget constraint?
A. P_x x + 0.95 P_y y = I
B. 1.1 P_x x + 0.95 P_y y = I
C. 1.1 P_x x + 0.9 P_y y = I
D. 1.1 P_x x + 0.95 P_y y = 1.05 I
Question 12
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the equilibrium price and quantity in this market?
A. ₦100, 1000 units
B. ₦120, 800 units
C. ₦150, 600 units
D. ₦180, 400 units
Question 13
A consumer has a budget of ₦1000 and a preference for two goods, X and Y. The prices of the goods are ₦200 and ₦300 respectively. If the consumer spends all of their budget, what is the quantity of good X that the consumer will purchase?
A. 2
B. 3
C. 4
D. 5
Question 14
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is the quantity produced, L is the labor input, and K is the capital input. If the firm's labor input increases by 20% and capital input remains constant, what is the percentage change in the quantity produced?
A. 10%
B. 20%
C. 30%
D. 40%
Question 15
A firm's production function is given by Q = 2L^(1/2)K^(1/2). If the firm's labor and capital are increased by 20% and 15% respectively, what is the new production function?
A. Q = 2.4L^(1/2)K^(1/2)
B. Q = 2.2L^(1/2)K^(1/2)
C. Q = 2L^(1/2)K^(1/2)
D. Q = 2.2L^(1/2)K^(1/2)

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