POST UTME MOUNTAIN TOP UNIVERSITY 2018 Commerce | Objective

Are you preparing for POST UTME MOUNTAIN TOP UNIVERSITY 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, the supply curve is horizontal and the demand curve is downward-sloping. What is the equilibrium price and quantity of a commodity in this market?
Correct A. ₦1500 and 1000 units
B. ₦2000 and 500 units
C. ₦2500 and 200 units
D. ₦3000 and 100 units

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the firm's current output?
A. 20
B. 30
Correct C. 40
D. 50

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A consumer's budget constraint is given by the equation 2x + 3y = 12, where x and y are the quantities of two goods. If the consumer's current income is ₦12 and the prices of the two goods are ₦2 and ₦3, respectively, what is the consumer's optimal bundle of goods?
A. x = 2, y = 4
Correct B. x = 3, y = 3
C. x = 4, y = 2
D. x = 5, y = 1

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A firm's cost function is given by C(Q) = 2Q^2 + 5Q + 10. If the firm's current output is Q = 5, what is the firm's current total cost?
A. ₦50
B. ₦60
Correct C. ₦70
D. ₦80

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A consumer's indifference curve is given by the equation u(x, y) = 2x + 3y, where x and y are the quantities of two goods. If the consumer's current income is ₦12 and the prices of the two goods are ₦2 and ₦3, respectively, what is the consumer's optimal bundle of goods?
A. x = 2, y = 4
Correct B. x = 3, y = 3
C. x = 4, y = 2
D. x = 5, y = 1

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will
A. increase
Correct B. decrease
C. remain constant
D. shift to the left

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is the quantity produced, L is labor and K is capital. If the firm wants to produce 16 units of output, how many units of labor are needed if the capital is 4?
A. 4
Correct B. 8
C. 16
D. 32

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A company is considering two different advertising strategies. The first strategy involves a one-time payment of ₦100,000, while the second strategy involves a monthly payment of ₦10,000 for 12 months. Which strategy is more cost-effective?
A. The first strategy is more cost-effective
Correct B. The second strategy is more cost-effective
C. Both strategies are equally cost-effective
D. Neither strategy is cost-effective

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A firm has the following inventory levels: 100 units of raw materials, 50 units of work-in-progress, and 200 units of finished goods. What is the total inventory level?
A. 350
B. 450
Correct C. 550
D. 650

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A bank has a reserve requirement of 10% and a cash reserve of ₦100,000. If the bank wants to increase its cash reserve by 20%, how much additional cash will it need to hold?
A. ₦20,000
Correct B. ₦40,000
C. ₦60,000
D. ₦80,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
In a sole trader business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Unlimited liability
C. Easy to set up
Correct D. Flexibility in decision-making

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A company has a share capital of ₦10,000,000, divided into 2,000,000 ordinary shares of ₦5 each. If a shareholder wants to sell 1,000 shares, how much will they receive?
Correct A. ₦5,000
B. ₦5,000,000
C. ₦5,000,000,000
D. ₦5,000,000,000,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A consumer protection agency has received a complaint about a company's misleading advertising. The agency wants to investigate the company's marketing strategy. Which of the following is the most appropriate action for the agency to take?
A. Send a warning letter to the company
Correct B. Conduct a thorough investigation into the company's marketing strategy
C. File a lawsuit against the company
D. Ignore the complaint

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A company is considering exporting its products to a foreign country. Which of the following is a key consideration for the company?
A. Tariffs and trade barriers
B. Cultural differences
C. Language barriers
Correct D. All of the above

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A sole trader business has a turnover of ₦1,000,000 and a profit of ₦200,000. What is the business's profit margin?
A. 20%
Correct B. 25%
C. 30%
D. 35%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
In a sole proprietorship, the owner's personal assets are not protected from business liabilities. What is the term for this type of business structure?
Correct A. Sole Proprietorship
B. Partnership
C. Limited Liability Company
D. Corporation

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A company's articles of association may be altered by a special resolution passed at a general meeting of the company. What is the minimum percentage of shareholders required to pass this resolution?
A. 50%
Correct B. 75%
C. 90%
D. 95%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A consumer purchases a product from a retailer, but the product is defective. The consumer returns the product to the retailer, who refuses to accept it. What is the consumer's next course of action?
A. File a complaint with the manufacturer
B. Seek a refund from the retailer
C. Sue the retailer for breach of contract
Correct D. Contact the consumer protection agency

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A company's warehouse is located in a remote area, and the company uses a third-party logistics provider to manage its inventory. What is the term for this type of inventory management system?
A. Just-in-Time (JIT) inventory system
B. Vendor-managed inventory (VMI) system
Correct C. Third-party logistics (3PL) system
D. Enterprise resource planning (ERP) system

Correct Answer: C

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. What is the purpose of the auditor's report?
Correct A. To provide an opinion on the company's financial position
B. To express an opinion on the company's management
C. To provide an opinion on the company's compliance with laws and regulations
D. To provide an opinion on the company's internal controls

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
A company has two business units: A and B. Unit A has a profit margin of 25% and a total revenue of ₦10,000,000. Unit B has a profit margin of 15% and a total revenue of ₦8,000,000. What is the total profit of the company?
Correct A. ₦2,500,000
B. ₦3,000,000
C. ₦3,500,000
D. ₦4,000,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A consumer purchases a product with a price of ₦5,000. The product has a 10% discount for the first 100 customers. If the consumer is the 150th customer, what is the price of the product?
A. ₦4,500
Correct B. ₦5,000
C. ₦5,500
D. ₦6,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A company has a production capacity of 10,000 units per day. The company operates for 20 days in a month. If the company produces 8,000 units per day, what is the total production for the month?
A. 80,000
Correct B. 80,000
C. 90,000
D. 100,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A company has a fleet of 10 trucks that transport goods from Lagos to Abuja. Each truck has a capacity of 5 tons. If the company transports 50 tons of goods per day, what is the total number of trucks required?
A. 5
Correct B. 6
C. 7
D. 8

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A company has a policy of paying its employees a 10% bonus on their salaries. If an employee earns ₦100,000 per month, what is the bonus?
Correct A. ₦10,000
B. ₦11,000
C. ₦12,000
D. ₦13,000

Correct Answer: A

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