POST UTME EKSU 2018 Commerce | Objective

Are you preparing for POST UTME EKSU exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2018 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
In a perfectly competitive market, what is the relationship between the marginal revenue product of labor (MRP) and the marginal factor cost of labor (MFC)?
A. MRP > MFC
B. MRP < MFC
Correct C. MRP = MFC
D. MRP and MFC are unrelated

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A firm's supply curve is upward-sloping. What does this indicate about the firm's production costs?
Correct A. The firm's production costs are increasing
B. The firm's production costs are decreasing
C. The firm's production costs are constant
D. The firm's production costs are unrelated to supply

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A company is considering two different marketing strategies: a high-low pricing strategy or a penetration pricing strategy. Which strategy is more likely to increase market share?
A. High-low pricing strategy
Correct B. Penetration pricing strategy
C. Both strategies are equally effective
D. Neither strategy is effective

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A bank's cash reserve ratio is 10%. If the bank has 100,000 in deposits, how much cash must it hold in reserve?
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 5
A firm's demand curve is downward-sloping. What does this indicate about the firm's willingness to pay?
A. The firm is willing to pay a higher price
Correct B. The firm is willing to pay a lower price
C. The firm's willingness to pay is unrelated to the demand curve
D. The firm is indifferent to the price

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
The concept of 'limited liability' in a company is best described as:
A. The company is responsible for all debts and liabilities of its members.
Correct B. The company's liability is limited to the amount of its share capital.
C. The company's members are personally liable for its debts and liabilities.
D. The company's liability is unlimited and its members have no protection.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A company's Memorandum of Association is a document that:
Correct A. Outlines the company's objectives and scope of business.
B. Specifies the company's share capital and its division among shareholders.
C. Provides details of the company's directors and their roles.
D. Contains the company's Articles of Association.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A sole trader's business is best described as a:
A. Partnership between two or more individuals.
B. Company with limited liability and a separate legal entity.
Correct C. Business owned and operated by one individual.
D. Cooperative society with shared ownership and decision-making.

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
The concept of 'agency' in business refers to:
Correct A. A person or organization acting on behalf of another.
B. A business entity with a separate legal identity.
C. A type of business ownership where multiple individuals share profits and losses.
D. A contract between two parties where one party agrees to perform a service for the other.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A company's Articles of Association is a document that:
A. Outlines the company's objectives and scope of business.
B. Specifies the company's share capital and its division among shareholders.
Correct C. Provides details of the company's directors and their roles.
D. Contains the company's Memorandum of Association.

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
In a perfectly competitive market, the law of one price dictates that the price of a commodity will be the same everywhere, but this is not always the case. What is the primary reason for the deviation from the law of one price?
A. Transportation costs
Correct B. Tariffs and trade barriers
C. Monopoly power
D. Seasonal fluctuations

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is output, L is labor, and K is capital. If the firm wants to increase output by 20% while keeping labor constant, what percentage increase in capital is required?
A. 10%
B. 20%
Correct C. 30%
D. 40%

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A consumer has a budget of ₦1000 and faces the following prices: Q1 = ₦200, Q2 = ₦300, Q3 = ₦400. Using the budget constraint, find the consumer's optimal bundle of goods.
Correct A. (Q1 = 2, Q2 = 1, Q3 = 0)
B. (Q1 = 1, Q2 = 2, Q3 = 0)
C. (Q1 = 0, Q2 = 1, Q3 = 2)
D. (Q1 = 2, Q2 = 0, Q3 = 1)

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A firm's demand function is given by Q = 100 - 2P, where Q is quantity demanded and P is price. If the firm wants to maximize revenue, what price should it charge?
A. ₦20
Correct B. ₦30
C. ₦40
D. ₦50

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A consumer has a utility function U = 2X + 3Y, where X and Y are goods. If the consumer's budget constraint is 2X + 3Y = 12, find the consumer's optimal bundle of goods.
A. (X = 2, Y = 2)
Correct B. (X = 3, Y = 1)
C. (X = 4, Y = 0)
D. (X = 0, Y = 4)

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 was first introduced by which of the following economists?
A. Adam Smith
Correct B. David Ricardo
C. Thomas Malthus
D. John Stuart Mill

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A sole trader's business is not affected by the death of the owner because the business is a
A. partnership
B. company
Correct C. proprietorship
D. joint venture

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
The main purpose of the Consumer Protection Act is to
A. regulate business practices
Correct B. protect consumers from unfair trade practices
C. promote competition among businesses
D. regulate prices of goods and services

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
The diagram below shows the production possibilities curve for a country. What is the opportunity cost of producing 100 units of good X?
Correct A. 50 units of good Y
B. 100 units of good Y
C. 200 units of good Y
D. 500 units of good Y

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A company's financial statements are audited by an independent auditor to ensure that they are
A. accurate and reliable
B. complete and comprehensive
C. relevant and material
Correct D. all of the above

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
In a perfectly competitive market, the law of diminishing marginal utility leads to a decrease in the marginal revenue product of a firm's inputs. What is the likely consequence of this decrease?
A. An increase in the firm's output
Correct B. A decrease in the firm's output
C. No change in the firm's output
D. An increase in the firm's price

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A firm's production function is given by Q = 2L^0.5 + 3K^0.5. If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 5%
Correct B. 10%
C. 15%
D. 20%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A consumer's budget constraint is given by 2x + 3y = 12. If the consumer's income increases by 20%, what is the new budget constraint?
A. 2x + 3y = 14.4
Correct B. 2x + 3y = 14.8
C. 2x + 3y = 15.2
D. 2x + 3y = 15.6

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A firm's demand function is given by Q = 100 - 2P. If the firm's price increases by 10%, what is the new quantity demanded?
A. 90
Correct B. 80
C. 70
D. 60

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A consumer's indifference curve is given by U = 2x + 3y. If the consumer's income increases by 20%, what is the new indifference curve?
A. U = 2x + 3y
Correct B. U = 2x + 3.6y
C. U = 2.4x + 3y
D. U = 2.4x + 3.6y

Correct Answer: B

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

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:
Chat with Support