POST UTME EKSU 2023 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 2023 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
In a monopolistically competitive market, a firm's demand curve is downward sloping due to?
Correct A. Product differentiation
B. Barriers to entry
C. Perfectly elastic demand
D. Imperfectly elastic demand

Correct Answer: A

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Question 2
A firm's production function is given by Q = 2L^(1/2)K^(1/2). If the firm's current capital stock is 16 units and labor is 9 units, what is the marginal product of labor?
A. 1/2
B. 1
Correct C. 2
D. 3

Correct Answer: C

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Question 3
A consumer has an indifference curve map with the following indifference curves: I_1, I_2, I_3, I_4. If the consumer is currently at point A on I_1 and moves to point B on I_2, what is the consumer's marginal rate of substitution?
A. 1/2
Correct B. 1
C. 2
D. 3

Correct Answer: B

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Question 4
A firm's cost function is given by C(Q) = 2Q^2 + 10Q. If the firm produces 5 units of output, what is the total cost?
A. 50
B. 60
Correct C. 70
D. 80

Correct Answer: C

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Question 5
A firm's revenue function is given by R(Q) = 10Q^2. If the firm produces 3 units of output, what is the marginal revenue?
A. 20
Correct B. 30
C. 40
D. 50

Correct Answer: B

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Question 6
A sole trader's business is considered a separate legal entity from its owner. True or False?
A. True
Correct B. False
C. Depends on the jurisdiction
D. Not applicable

Correct Answer: B

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Question 7
A company's Memorandum of Association (MOA) is a document that outlines the company's constitution and rules. What is the primary purpose of the MOA?
A. To outline the company's business objectives
B. To define the company's share capital
Correct C. To outline the company's constitution and rules
D. To appoint the company's directors

Correct Answer: C

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Question 8
A warehouse's inventory management system uses the First-In-First-Out (FIFO) method to track stock levels. What is the primary advantage of using FIFO?
Correct A. It ensures that the oldest stock is sold first
B. It minimizes stock obsolescence
C. It maximizes stock turnover
D. It reduces stock holding costs

Correct Answer: A

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Question 9
A consumer protection law requires businesses to provide clear and accurate information about their products. What is the primary purpose of this law?
Correct A. To protect consumers from false advertising
B. To ensure that businesses comply with product safety standards
C. To promote fair competition among businesses
D. To regulate business practices

Correct Answer: A

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Question 10
A production process uses the Just-In-Time (JIT) method to manage inventory levels. What is the primary advantage of using JIT?
A. It minimizes stock holding costs
B. It maximizes stock turnover
Correct C. It ensures that production is aligned with customer demand
D. It reduces production lead times

Correct Answer: C

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Question 11
A company's marketing strategy involves creating a perceived value for its products through advertising and branding. This approach is an example of which of the following?
A. Product differentiation
B. Market segmentation
Correct C. Positioning
D. Branding

Correct Answer: C

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Question 12
A consumer has the right to request a refund or replacement for a defective product under the Consumer Protection Act. Which of the following is a condition for making such a request?
Correct A. The product must be within its warranty period
B. The consumer must have purchased the product from the manufacturer
C. The product must be defective due to a manufacturing fault
D. The consumer must have used the product for its intended purpose

Correct Answer: A

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Question 13
A company's production process involves the use of a machine that can produce 500 units per hour. However, due to a breakdown, the machine can only produce 200 units per hour for 2 hours. What is the total production for the day?
A. 1000 units
B. 1200 units
Correct C. 1500 units
D. 1800 units

Correct Answer: C

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Question 14
A company has a warehouse with a capacity to store 1000 units of product. The company receives a shipment of 800 units and already has 200 units in stock. What is the total capacity of the warehouse?
Correct A. 1000 units
B. 1200 units
C. 1500 units
D. 1800 units

Correct Answer: A

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Question 15
A company uses the Just-In-Time (JIT) inventory system to manage its stock levels. Which of the following is a benefit of using JIT?
A. Reduced inventory costs
B. Improved product quality
C. Increased production efficiency
Correct D. All of the above

Correct Answer: D

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Question 16
In a perfectly competitive market, the supply curve is horizontal and the demand curve is downward-sloping. What is the effect of an increase in the price of a complementary good on the demand for the product?
A. The demand for the product increases.
Correct B. The demand for the product decreases.
C. The demand for the product remains unchanged.
D. The demand for the product increases, but at a decreasing rate.

Correct Answer: B

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Question 17
A firm is considering two different production technologies: one that uses a lot of labor and another that uses a lot of capital. Which technology would be more suitable for a firm that has a large supply of labor but limited capital?
Correct A. The technology that uses a lot of labor.
B. The technology that uses a lot of capital.
C. Both technologies are equally suitable.
D. Neither technology is suitable.

Correct Answer: A

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Question 18
A company is considering two different marketing strategies: one that targets a niche market and another that targets a mass market. Which strategy would be more suitable for a company that has a limited budget?
Correct A. The strategy that targets a niche market.
B. The strategy that targets a mass market.
C. Both strategies are equally suitable.
D. Neither strategy is suitable.

Correct Answer: A

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Question 19
A firm is considering two different distribution channels: one that uses a direct sales force and another that uses a indirect sales force. Which channel would be more suitable for a firm that has a large geographic area to cover?
A. The channel that uses a direct sales force.
Correct B. The channel that uses an indirect sales force.
C. Both channels are equally suitable.
D. Neither channel is suitable.

Correct Answer: B

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Question 20
A company is considering two different pricing strategies: one that uses a high price and another that uses a low price. Which strategy would be more suitable for a company that wants to maximize its profits?
Correct A. The strategy that uses a high price.
B. The strategy that uses a low price.
C. Both strategies are equally suitable.
D. Neither strategy is suitable.

Correct Answer: A

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Question 21
Under the Consumer Protection Act of 1999, what is the primary responsibility of the Consumer Protection Council (CPC)?
Correct A. To investigate consumer complaints and prosecute offenders
B. To provide education and awareness programs for consumers
C. To regulate the activities of businesses and industries
D. To provide compensation to consumers for losses incurred

Correct Answer: A

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Question 22
A company's warehouse is located near a residential area. The company's storage of hazardous materials has caused environmental pollution. Which of the following is a likely consequence?
A. The company will be fined by the regulatory agency
Correct B. The company will be sued by the affected residents
C. The company will be forced to relocate the warehouse
D. The company will be granted a permit to continue storing hazardous materials

Correct Answer: B

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Question 23
A bank's customer has deposited ₦100,000 into their account. The bank has a policy of paying interest on deposits. What is the minimum interest that the bank must pay on this deposit?
A. ₦1,000
B. ₦5,000
Correct C. ₦10,000
D. ₦20,000

Correct Answer: C

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Question 24
A company's stock control system uses a first-in-first-out (FIFO) inventory method. If the company has 100 units of a product in stock, and 20 units are sold, what is the new quantity of the product in stock?
Correct A. 80
B. 90
C. 100
D. 120

Correct Answer: A

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Question 25
A business organization is considering the use of electronic data interchange (EDI) to improve its supply chain management. What is the primary benefit of EDI?
Correct A. Improved communication between trading partners
B. Increased efficiency in data processing
C. Reduced costs associated with paper-based transactions
D. Enhanced security of data transmission

Correct Answer: A

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