Practice post utme ui commerce 2017 Past Questions

Question 1

In a perfectly competitive market, the supply curve is typically represented by a

Correct A. Horizontal line

B. Vertical line

C. U-shaped curve

D. Inverted U-shaped curve

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 2

A firm's revenue is maximized when the price elasticity of demand is

A. Unit elastic

B. Inelastic

Correct C. Elastic

D. Perfectly inelastic

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 3

A bank's cash reserve ratio is the ratio of

A. Total deposits to total loans

Correct B. Total deposits to total cash

C. Total loans to total deposits

D. Total cash to total loans

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 4

A firm's break-even point is the point at which its total revenue equals its

A. Total fixed costs

B. Total variable costs

Correct C. Total costs

D. Total revenue

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 5

A warehouse's inventory turnover ratio is the ratio of

Correct 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

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

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

Correct B. ₦375,000

C. ₦450,000

D. ₦525,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 7

A sole trader has an initial capital of ₦100,000. He invests ₦50,000 in a business venture and borrows ₦75,000 from a bank. What is the total capital of the business?

A. ₦175,000

B. ₦225,000

Correct C. ₦275,000

D. ₦325,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 8

A company has a warehouse with a capacity of 10,000 units. It receives a shipment of 8,000 units and sells 5,000 units. What is the remaining capacity of the warehouse?

A. 5,000

B. 6,000

C. 7,000

Correct D. 8,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 9

A bank offers a 5% interest rate on a savings account. If a customer deposits ₦10,000, how much will they earn in interest after 1 year?

A. ₦500

Correct B. ₦1,000

C. ₦1,500

D. ₦2,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 10

A company has a foreign trade agreement with a supplier in another country. The supplier offers a 10% discount on the total cost of ₦100,000. What is the amount of the discount?

Correct A. ₦10,000

B. ₦20,000

C. ₦30,000

D. ₦40,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 11

The following diagram shows a sole trader's balance sheet. What is the value of the owner's equity?

A. ₦5000

Correct B. ₦10000

C. ₦20000

D. ₦30000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 12

A company has a turnover of ₦1000000 and a profit of ₦200000. What is its gross profit?

A. ₦800000

B. ₦900000

Correct C. ₦1000000

D. ₦1100000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 13

A consumer protection agency has the power to investigate and prosecute any person or company that engages in unfair trade practices. What is the name of this power?

A. Regulatory power

B. Investigatory power

Correct C. Prosecutorial power

D. Administrative power

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 14

A company has a market share of 30% in a particular industry. What is the name of this market structure?

A. Monopoly

B. Oligopoly

C. Monopolistic competition

Correct D. Perfect competition

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 15

A sole trader has a business income of ₦500000 and a business expense of ₦200000. What is his business profit?

A. ₦300000

Correct B. ₦400000

C. ₦500000

D. ₦600000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 16

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?

Correct 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

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 17

A firm's production function is 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 maximum quantity it can produce?

A. 100

B. 120

Correct C. 150

D. 200

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 18

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 maximum quantity of the good they can afford to buy?

A. 20

B. 30

Correct C. 40

D. 50

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 19

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?

Correct A. 0.5

B. 1

C. 2

D. 3

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 20

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?

Correct A. 0.5

B. 1

C. 2

D. 3

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 21

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 total product of labor?

A. 100

B. 120

Correct C. 150

D. 200

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 22

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 consumer's surplus?

A. ₦250

B. ₦500

Correct C. ₦750

D. ₦1000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 23

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?

Correct A. 0.5

B. 1

C. 2

D. 3

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 24

The Consumer Protection Act of 1999 provides for the establishment of the National Consumer Protection Agency. What is the primary function of this agency?

Correct A. To investigate complaints from consumers

B. To regulate the activities of businesses

C. To educate consumers on their rights

D. To provide legal assistance to consumers

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Question 25

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

Correct C. To disclose the terms and conditions of the issue

D. To provide a detailed description of the company's products

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

POST UTME UI 2017 Commerce | Objective

Master the Exam!

Help others prepare! Share this practice hub: