POST UTME UI 2017 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
In a perfectly competitive market, the supply curve is typically represented by a
A. Horizontal line
B. Vertical line
C. U-shaped curve
D. Inverted U-shaped curve
Question 2
A company has a share capital of ₦1,000,000, divided into 100,000 ordinary shares of ₦10 each. If the company issues 20,000 shares to the public, what is the total amount of money received from the public?
A. ₦200,000
B. ₦400,000
C. ₦600,000
D. ₦800,000
Question 3
A consumer protection agency has received complaints about a company's unfair business practices. The agency has collected evidence that the company has engaged in price-fixing, which has resulted in a 20% increase in prices for consumers. If the company's current revenue is ₦500 million, what is the expected increase in revenue if the company continues to engage in price-fixing?
A. ₦100 million
B. ₦120 million
C. ₦140 million
D. ₦160 million
Question 4
A company issues a prospectus to raise capital. What is the primary purpose of the prospectus?
A. To provide information about the company's financial performance
B. To outline the company's business objectives
C. To disclose the terms and conditions of the issue
D. To provide a detailed description of the company's products
Question 5
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost. Which of the following statements best describes the opportunity cost of a country?
A. The value of the next best alternative good or service that could have been produced with the same resources
B. The quantity of the next best alternative good or service that could have been produced with the same resources
C. The price of the next best alternative good or service that could have been produced with the same resources
D. The quality of the next best alternative good or service that could have been produced with the same resources
Question 6
A company has two business units: A and B. Unit A has a profit of ₦150,000 and a loss of ₦75,000, while Unit B has a profit of ₦225,000. What is the total profit of the company?
A. ₦300,000
B. ₦375,000
C. ₦450,000
D. ₦525,000
Question 7
A firm has a production function given by Q = 2L^0.5 + 3K^0.5, where Q is the quantity produced, L is labor and K is capital. If the firm has 100 units of labor and 200 units of capital, what is the marginal product of capital?
A. 0.5
B. 1
C. 2
D. 3
Question 8
A firm's foreign trade policy involves importing raw materials from a foreign country and exporting finished goods to another country. If the firm's current import price is 100 per unit and the export price is 150 per unit, what is the expected profit per unit if the firm sells 1000 units?
A. 50 per unit
B. 60 per unit
C. 70 per unit
D. 80 per unit
Question 9
A sole trader operates a business and incurs a loss. What is the tax implication of this loss?
A. The loss can be set off against the trader's personal income
B. The loss can be carried forward to future years
C. The loss is not tax-deductible
D. The loss is subject to capital gains tax
Question 10
A consumer has a budget of ₦1000 and a demand function for a good given by p = 2x + 10, where p is the price and x is the quantity demanded. If the consumer's income is ₦1000, what is the price elasticity of demand?
A. 0.5
B. 1
C. 2
D. 3
Question 11
A firm has a production function given by Q = 2L^0.5 + 3K^0.5, where Q is the quantity produced, L is labor and K is capital. If the firm has 100 units of labor and 200 units of capital, what is the marginal product of labor?
A. 0.5
B. 1
C. 2
D. 3
Question 12
In a perfectly competitive market, the law of diminishing marginal utility is most relevant to the production of which of the following goods?
A. Giffen goods
B. Normal goods
C. Inferior goods
D. Veblen goods
Question 13
A warehouse's inventory turnover ratio is the ratio of
A. Cost of goods sold to average inventory
B. Average inventory to cost of goods sold
C. Total inventory to total sales
D. Total sales to total inventory
Question 14
A company has a turnover of ₦1000000 and a profit of ₦200000. What is its gross profit?
A. ₦800000
B. ₦900000
C. ₦1000000
D. ₦1100000
Question 15
A company has a policy of paying its employees a 10% bonus on their annual salary. If an employee earns ₦100,000 per year, what is the amount of the bonus?
A. ₦10,000
B. ₦9,000
C. ₦8,000
D. ₦7,000

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