POST UTME WELLSPRING UNIVERSITY 2025 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A firm is considering the introduction of a new product into the market. The product has a high fixed cost of production, but a low variable cost of production. What type of market structure is this product likely to be in?
A. Perfect competition
B. Monopoly
C. Monopolistic competition
D. Oligopoly
Question 2
A company is considering the implementation of a just-in-time (JIT) inventory system. Which of the following is a key benefit of JIT?
A. Reduced inventory costs
B. Improved product quality
C. Increased production efficiency
D. Enhanced customer service
Question 3
A company uses the Just-In-Time (JIT) inventory management system. The company receives a shipment of 2,000 units of raw materials. If the company uses the JIT system, what is the total number of units in the warehouse after the new shipment arrives?
A. 2,000
B. 1,000
C. 3,000
D. 4,000
Question 4
A company specializes in producing high-quality leather goods. It has a warehouse with a storage capacity of 10,000 units. The company receives a new shipment of 5,000 units of leather goods. If the company uses the First-In-First-Out (FIFO) method to manage its inventory, what is the total number of units in the warehouse after the new shipment arrives?
A. 15,000
B. 10,000
C. 5,000
D. 20,000
Question 5
A firm is considering two investment projects. Project A has a 10% chance of returning 100,000 and a 90% chance of returning 0. Project B has a 20% chance of returning 80,000 and a 80% chance of returning 0. Which project has a higher expected return?
A. Project A
B. Project B
C. Both projects have the same expected return
D. Neither project has a higher expected return
Question 6
A consumer purchases a product for ₦5,000 and pays a 5% sales tax. What is the total amount paid?
A. ₦5,250
B. ₦5,200
C. ₦5,000
D. ₦4,750
Question 7
In a just-in-time inventory system, what is the primary goal of the warehouse manager?
A. To minimize inventory costs
B. To maximize storage capacity
C. To reduce lead times
D. To increase inventory turnover
Question 8
A company has a warehouse with a capacity of 10,000 units. If the current stock level is 8,000 units and the daily demand is 200 units, what is the reorder point?
A. 6,000 units
B. 7,000 units
C. 8,000 units
D. 9,000 units
Question 9
In a perfectly competitive market, the law of supply states that the quantity supplied of a good increases as the price of the good increases, ceteris paribus. However, the law of supply also assumes that the firm is a price-taker. What is the implication of this assumption on the firm's decision-making process?
A. The firm can set its own price for the good.
B. The firm must accept the market price for the good.
C. The firm can influence the market price of the good.
D. The firm can produce any quantity of the good it wants.
Question 10
A firm's production function is characterized by the law of
A. diminishing returns
B. increasing returns
C. constant returns
D. decreasing returns
Question 11
The concept of 'Just-in-Time' inventory management is closely related to which of the following production strategies?
A. Mass Production
B. Flexible Manufacturing System
C. Lean Production
D. Batch Production
Question 12
A company is considering the introduction of a new product into the market. The product has a high fixed cost of production, but a low variable cost of production. What type of market structure is this product likely to be in?
A. Perfect competition
B. Monopoly
C. Monopolistic competition
D. Oligopoly
Question 13
A company's production function is influenced by its
A. Technology
B. Capital
C. Labor
D. Raw Materials
Question 14
A firm is considering two investment projects. Project A has a 10% chance of returning 100,000 and a 90% chance of returning 0. Project B has a 20% chance of returning 80,000 and a 80% chance of returning 0. Which project has a higher expected return?
A. Project A
B. Project B
C. Both projects have the same expected return
D. Neither project has a higher expected return
Question 15
A firm specializes in producing and marketing a single product. The production process involves two stages: Stage 1 and Stage 2. In Stage 1, the firm produces 10,000 units of the product, and in Stage 2, it produces 5,000 units. If the firm uses the same production process for both stages, what is the total number of units produced?
A. 15,000
B. 20,000
C. 10,000
D. 5,000

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