Practice post utme summit university commerce 2021 Past Questions

Question 1

Which of the following is a characteristic of a monopolistically competitive market?

A. High barriers to entry

Correct B. Many firms producing a differentiated product

C. Perfectly elastic demand curve

D. Price leader

Correct Answer: B

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Question 2

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are 4 and 9 respectively, what is the level of output?

A. 6

Correct B. 8

C. 10

D. 12

Correct Answer: B

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Question 3

A consumer has a budget of ₦1000 and a preference for two goods, A and B. The prices of A and B are ₦200 and ₦300 respectively. If the consumer spends all their budget on the two goods, what is the maximum amount they can spend on good A?

A. ₦400

Correct B. ₦500

C. ₦600

D. ₦700

Correct Answer: B

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Question 4

A firm's demand function is given by Q = 100 - 2P. If the firm's marginal revenue function is MR = 200 - 4P, what is the level of output that maximizes profit?

A. 20

B. 30

Correct C. 40

D. 50

Correct Answer: C

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Question 5

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor and capital inputs are 4 and 9 respectively, what is the level of output?

A. 6

Correct B. 8

C. 10

D. 12

Correct Answer: B

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Question 6

A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm wants to increase its output by 20% while keeping labor constant, what percentage increase in capital is required?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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Question 7

A company has a warehouse with a capacity of 10,000 units. It receives a shipment of 5,000 units and then sells 3,000 units. What is the new stock level?

A. 7,000

B. 8,000

Correct C. 9,000

D. 10,000

Correct Answer: C

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Question 8

A firm's revenue function is given by R = 2Q^2, where R is revenue and Q is output. If the firm's output increases by 15%, what is the percentage increase in revenue?

A. 10%

B. 15%

Correct C. 20%

D. 25%

Correct Answer: C

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Question 9

A company uses the following transportation costs: 10 per unit for transportation by truck and 20 per unit for transportation by air. If the company has 1,000 units to transport and the cost of transportation by air is 20% higher than by truck, what is the minimum cost of transportation?

A. 10,000

Correct B. 12,000

C. 14,000

D. 16,000

Correct Answer: B

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Question 10

A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm wants to increase its output by 20% while keeping labor constant, what percentage increase in capital is required?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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Question 11

A company's sole trader has a warehouse with a capacity of 10,000 units. If the company's average daily sales are 200 units, and the warehouse is currently 70% full, how many days will it take to sell out the remaining stock?

A. 30 days

B. 45 days

Correct C. 60 days

D. 90 days

Correct Answer: C

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Question 12

A firm's profit function is given by P(x) = 2x^2 + 5x - 3, where x is the number of units produced. If the firm produces 10 units, what is the profit?

A. 47

Correct B. 57

C. 67

D. 77

Correct Answer: B

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Question 13

A bank's interest rate is 12% per annum. If a customer deposits ₦10,000 for 2 years, how much interest will the customer earn?

A. ₦2,400

B. ₦2,800

Correct C. ₦3,200

D. ₦3,600

Correct Answer: C

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Question 14

A company's sole trader has a warehouse with a capacity of 10,000 units. If the company's average daily sales are 200 units, and the warehouse is currently 70% full, what is the total value of the stock in the warehouse?

A. ₦1,500,000

B. ₦1,800,000

Correct C. ₦2,100,000

D. ₦2,400,000

Correct Answer: C

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Question 15

A firm's profit function is given by P(x) = 2x^2 + 5x - 3, where x is the number of units produced. If the firm produces 15 units, what is the profit?

A. 83

B. 93

Correct C. 103

D. 113

Correct Answer: C

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Question 16

A company has a warehouse with a capacity to store 10,000 units of goods. The warehouse is currently 70% full. If 500 units of goods are added to the warehouse, what is the new percentage of the warehouse that is full?

A. 60%

Correct B. 65%

C. 70%

D. 75%

Correct Answer: B

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Question 17

A sole trader has an annual turnover of ₦5,000,000. If the sole trader's profit margin is 20%, what is the sole trader's profit for the year?

A. ₦1,000,000

Correct B. ₦1,500,000

C. ₦2,000,000

D. ₦2,500,000

Correct Answer: B

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Question 18

A company has a foreign trade agreement with a country that has a currency exchange rate of 1 USD = 360 Naira. If the company imports goods worth 10,000, what is the value of the goods in Naira?

Correct A. ₦3,600,000

B. ₦3,600,000

C. ₦3,600,000

D. ₦3,600,000

Correct Answer: A

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Question 19

A company has a warehouse with a capacity to store 10,000 units of goods. The warehouse is currently 70% full. If 500 units of goods are removed from the warehouse, what is the new percentage of the warehouse that is full?

Correct A. 60%

B. 65%

C. 70%

D. 75%

Correct Answer: A

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Question 20

A company has a foreign trade agreement with a country that has a currency exchange rate of 1 USD = 360 Naira. If the company exports goods worth 5,000, what is the value of the goods in Naira?

Correct A. ₦1,800,000

B. ₦1,800,000

C. ₦1,800,000

D. ₦1,800,000

Correct Answer: A

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Question 21

In a competitive market, a firm's demand curve is downward sloping. What is the likely effect on the firm's total revenue?

A. Total revenue increases

Correct B. Total revenue decreases

C. Total revenue remains constant

D. Total revenue is unaffected

Correct Answer: B

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Question 22

A consumer purchases a product with a price of ₦500 and a discount of 10%. What is the amount of the discount?

A. ₦50

Correct B. ₦100

C. ₦200

D. ₦250

Correct Answer: B

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Question 23

A firm's production function is given by Q = 2L + 3K. If the firm's labor and capital inputs are 4 and 5 respectively, what is the total output?

A. 20

B. 25

Correct C. 30

D. 35

Correct Answer: C

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Question 24

A consumer's indifference curve is given by the equation U = 2x + 3y. If the consumer's income is ₦100 and the prices of x and y are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?

A. (10, 5)

Correct B. (15, 3)

C. (20, 2)

D. (25, 1)

Correct Answer: B

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Question 25

A firm's cost function is given by C = 2L + 3K. If the firm's labor and capital inputs are 4 and 5 respectively, what is the total cost?

A. 20

B. 25

Correct C. 30

D. 35

Correct Answer: C

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