POST UTME VERITAS UNIVERSITY 2018 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has a production cost of ₦50 per unit for a product. If the selling price is ₦75 per unit, what is the profit per unit?
A. ₦25
B. ₦30
C. ₦35
D. ₦40
Question 2
A firm's demand curve is given by the equation Qd = 100 - 2P, where Qd is the quantity demanded and P is the price. If the firm's marginal revenue is ₦50, what is the price elasticity of demand?
A. 0.5
B. 1
C. 2
D. 3
Question 3
A company's production process involves the use of a machine that requires regular maintenance to prevent accidents. What type of risk is the company exposed to?
A. Operational risk
B. Strategic risk
C. Financial risk
D. Compliance risk
Question 4
A consumer has a budget of ₦10,000 per month and is considering purchasing two different products. Product X costs ₦2,000 per unit and Product Y costs ₦3,000 per unit. If the consumer wants to purchase as many units of each product as possible, how many units of each product should they buy?
A. 10 units of Product X and 3 units of Product Y.
B. 8 units of Product X and 2 units of Product Y.
C. 6 units of Product X and 1 unit of Product Y.
D. 4 units of Product X and 0 units of Product Y.
Question 5
A company has two production plants, A and B. Plant A produces 200 units per day, while plant B produces 300 units per day. If the total demand is 500 units per day, what is the optimal allocation of production between the two plants?
A. Plant A produces 200 units, plant B produces 300 units
B. Plant A produces 300 units, plant B produces 200 units
C. Plant A produces 400 units, plant B produces 100 units
D. Plant A produces 100 units, plant B produces 400 units
Question 6
A firm is considering two different production technologies: Technology A, which has a fixed cost of 100,000 and a variable cost of 20 per unit, and Technology B, which has a fixed cost of 50,000 and a variable cost of 30 per unit. If the firm's current sales are 10,000 units, what is the expected change in total cost under each technology?
A. Increase by 200,000
B. Decrease by 100,000
C. Increase by 50,000
D. Decrease by 50,000
Question 7
A company's sole trader has an initial capital of ₦250,000. If the company's profit is ₦150,000 and the sole trader's drawings are ₦30,000, what is the sole trader's capital at the end of the year?
A. ₦320,000
B. ₦350,000
C. ₦380,000
D. ₦410,000
Question 8
A company's marketing strategy involves the use of social media platforms to reach its target audience. What type of communication is being used?
A. Internal communication
B. External communication
C. Vertical communication
D. Horizontal communication
Question 9
A company's marketing strategy involves the use of social media platforms to reach its target audience. What type of communication is being used?
A. Internal communication
B. External communication
C. Vertical communication
D. Horizontal communication
Question 10
In a perfectly competitive market, the law of diminishing marginal utility implies that as the quantity of a good increases, the marginal utility of each additional unit will eventually decrease. However, this does not necessarily mean that the total utility of the good will also decrease. Explain why.
A. The total utility of the good will continue to increase as long as the marginal utility of each additional unit is positive.
B. The total utility of the good will eventually decrease as the marginal utility of each additional unit approaches zero.
C. The total utility of the good will remain constant as the marginal utility of each additional unit decreases.
D. The total utility of the good will increase at a decreasing rate as the marginal utility of each additional unit decreases.
Question 11
A firm has a warehouse with a capacity of 1000 units. The firm receives an order for 800 units and wants to fill it immediately. However, the supplier is delayed, and the firm receives only 600 units. What is the optimal inventory level?
A. 400 units
B. 600 units
C. 800 units
D. 1000 units
Question 12
A firm is considering two different storage facilities to store its products. Facility A has a capacity of 2000 units, while Facility B has a capacity of 5000 units. If the firm needs to store 3000 units, what is the minimum number of facilities required to store all the units?
A. 2
B. 3
C. 4
D. 5
Question 13
A bank has a reserve requirement of 10% for its customers. If a customer has a deposit of ₦100,000, how much must the bank reserve?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 14
A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 70% full. If the company receives a new shipment of 5,000 units, what is the new percentage of the warehouse that is full?
A. 30
B. 40
C. 50
D. 60
Question 15
A firm's revenue is given by the equation R = 100x - 2x^2, where x is the number of units sold. What is the marginal revenue when x = 10?
A. 80
B. 90
C. 100
D. 110

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