POST UTME UNIPORT 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A consumer's indifference curve is given by U = 2x + 3y, where x and y are the quantities of two goods. If the consumer's income is ₦1000 and the prices of the two goods are ₦5 and ₦10 respectively, what is the consumer's optimal bundle?
A. x = 20, y = 10
B. x = 15, y = 15
C. x = 10, y = 20
D. x = 5, y = 25
Question 2
The term 'sole trade' refers to a business owned and operated by
A. one person
B. two or more people
C. a partnership of three or more people
D. a company with shareholders
Question 3
A company's break-even point is the point at which its
A. total revenue equals its fixed costs
B. total revenue equals its variable costs
C. total revenue equals its total costs
D. total revenue equals its contribution margin
Question 4
A company has a market share of 20% in the Nigerian market. If the company wants to increase its market share by 5%, what is the new market share?
A. 25%
B. 30%
C. 35%
D. 40%
Question 5
A company is considering two different production processes for a new product. Process A requires an initial investment of ₦100,000 and produces 100 units per day, while Process B requires an initial investment of ₦200,000 and produces 200 units per day. If the company wants to maximize its profit, which process should it choose?
A. Process A, as it has a lower initial investment
B. Process B, as it produces more units per day
C. Process A, as it has a higher profit margin
D. Process B, as it has a lower cost per unit
Question 6
In a perfectly competitive market, the demand curve for a firm's product is its
A. marginal revenue curve
B. marginal cost curve
C. average revenue curve
D. average cost curve
Question 7
A company has a warehouse with a capacity of 1000 units. The warehouse is currently filled with 500 units. If the company receives a new shipment of 200 units, what is the new percentage of the warehouse that is filled?
A. 40
B. 50
C. 60
D. 70
Question 8
The process of creating a product or service that meets the needs and wants of consumers is known as
A. product development
B. product design
C. product innovation
D. product differentiation
Question 9
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 amount of share premium received?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 10
The term 'marketing mix' refers to the
A. combination of four Ps: product, price, promotion, and place
B. combination of five Ps: product, price, promotion, place, and people
C. combination of six Ps: product, price, promotion, place, people, and process
D. combination of seven Ps: product, price, promotion, place, people, process, and physical evidence
Question 11
The process of determining the optimal mix of products or services to produce and sell is known as
A. product mix decision
B. resource allocation decision
C. break-even analysis
D. cost-volume-profit analysis
Question 12
A consumer has a budget of ₦1000 and a preference for two goods: A and B. The prices of the goods are ₦200 and ₦300 respectively. If the consumer spends all of their budget, how many units of good A will they purchase?
A. 2
B. 3
C. 4
D. 5
Question 13
A company has a profit of ₦500,000 and a turnover of ₦5,000,000. What is the gross profit margin?
A. 10%
B. 15%
C. 20%
D. 25%
Question 14
A company is considering launching a new product in a foreign market. The company has conducted market research and determined that the demand for the product is inelastic. What is the likely effect of a price increase on the demand for the product?
A. The demand for the product will increase
B. The demand for the product will decrease
C. The demand for the product will remain unchanged
D. The demand for the product will be unaffected by the price increase
Question 15
A sole trader is considering hiring an employee to help with the workload. What are the tax implications of hiring an employee?
A. The sole trader will be liable for the employee's taxes
B. The employee will be liable for their own taxes
C. The sole trader will not be liable for the employee's taxes
D. The employee will be exempt from paying taxes

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