POST UTME UI 2021 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer has a budget of ₦1000 and a utility function given by U = 2x + 3y, where x and y are the quantities of two goods. The prices of the goods are given by p_x = ₦200 and p_y = ₦300. What is the consumer's optimal bundle?
A. x = 2, y = 1
B. x = 3, y = 2
C. x = 4, y = 3
D. x = 5, y = 4
Question 2
A company's articles of association may include provisions for the appointment of a managing director. What is the primary advantage of having a managing director?
A. Increased flexibility in decision-making
B. Improved financial management
C. Enhanced corporate governance
D. Reduced administrative burden
Question 3
A marketing strategy involves creating a new product line for a company. Which of the following is a key consideration in this strategy?
A. Target market analysis
B. Competitor analysis
C. Product life cycle analysis
D. Supply chain management
Question 4
A firm specializes in producing a particular product. Which of the following is a characteristic of specialization?
A. Increased productivity
B. Reduced product variety
C. Increased product quality
D. Reduced labor costs
Question 5
A firm is producing a commodity with a constant elasticity of demand of -2. The firm's marginal cost is given by MC = 10 + 2Q. What is the profit-maximizing quantity?
A. Q = 10
B. Q = 20
C. Q = 30
D. Q = 40
Question 6
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the wage rate is ₦100 per hour, and the rental rate is ₦200 per unit of capital, then the cost-minimizing input combination is
A. L = 4, K = 4
B. L = 16, K = 1
C. L = 1, K = 16
D. L = 4, K = 16
Question 7
A firm's demand function is given by Q = 100 - 2P. If the firm's revenue is ₦5000, and the price of the good is ₦50, what is the firm's marginal revenue?
A. ₦100
B. ₦200
C. ₦300
D. ₦400
Question 8
A sole trader has a business that involves importing and exporting goods. If the trader's profit is ₦1,500 per unit and the cost of importing a unit is ₦1,200, what is the minimum number of units the trader must sell to break even?
A. 500 units
B. 750 units
C. 1,000 units
D. 1,200 units
Question 9
A company uses a warehouse to store its inventory. Which of the following is a benefit of using a warehouse?
A. Reduced inventory costs
B. Increased inventory turnover
C. Improved inventory control
D. Reduced storage space
Question 10
A sole trader has a business that involves importing and exporting goods. If the trader's profit is ₦1,500 per unit and the cost of importing a unit is ₦1,200, what is the minimum number of units the trader must sell to break even?
A. 500 units
B. 750 units
C. 1,000 units
D. 1,200 units
Question 11
A company's sole trader has a warehouse with a capacity of 10,000 units. If the company's current stock is 8,000 units and the demand rate is 500 units per day, what is the maximum number of days the company can maintain its current stock level without reordering?
A. 20 days
B. 30 days
C. 40 days
D. 50 days
Question 12
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will
A. decrease
B. increase
C. remain constant
D. move in the opposite direction
Question 13
A company's sole trader has a warehouse with a capacity of 10,000 units. If the company's current stock is 8,000 units and the demand rate is 500 units per day, what is the maximum number of days the company can maintain its current stock level without reordering?
A. 20 days
B. 30 days
C. 40 days
D. 50 days
Question 14
A company uses a just-in-time inventory system. What is the primary advantage of this system?
A. Reduced inventory costs
B. Improved product quality
C. Increased flexibility in production
D. Enhanced customer service
Question 15
A consumer has the following indifference curves: IC1: 2U + 3V = 6, IC2: 2U + 3V = 9. If the consumer is initially at point (2,3) on IC1, and the price of good U is ₦5, and the price of good V is ₦10, then the consumer will move to the point
A. (4,2)
B. (2,4)
C. (1,5)
D. (5,1)

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: