POST UTME NOUN 2023 Commerce | Objective

Are you preparing for POST UTME NOUN 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.

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Question 1
In a perfectly competitive market, what is the relationship between the marginal revenue (MR) and the marginal cost (MC) of a firm?
A. MR > MC
B. MR < MC
Correct C. MR = MC
D. MR = MC + 1

Correct Answer: C

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Question 2
A company's sole trader has a turnover of ₦1,500,000 and a profit of ₦200,000. What is the sole trader's profit margin?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 3
A consumer protection agency receives a complaint about a company's unfair contract terms. The agency's primary goal is to?
A. Enforce the contract terms
B. Negotiate a new contract
Correct C. Educate the consumer about the contract terms
D. Ban the company from operating

Correct Answer: C

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Question 4
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's labor (L) increases by 20% and capital (K) remains constant, what is the percentage change in output (Q)?
Correct A. -10%
B. -5%
C. 0%
D. 5%

Correct Answer: A

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Question 5
A company's foreign trade involves exporting goods worth ₦500,000 to a foreign country. If the exchange rate is 1 USD = ₦200, what is the value of the exported goods in USD?
A. ₦1,000
Correct B. ₦2,000
C. ₦500
D. ₦1,000,000

Correct Answer: B

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Question 6
In a sole trade business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Tax benefits
C. Easy setup and management
Correct D. Flexibility in decision-making

Correct Answer: D

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Question 7
A company has a share capital of ₦1,000,000, divided into 100,000 ordinary shares of ₦10 each. If the company issues 20,000 shares at a premium of ₦5 per share, what is the total amount received from the issue of shares?
A. ₦200,000
B. ₦250,000
C. ₦300,000
Correct D. ₦350,000

Correct Answer: D

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Question 8
A consumer protection law requires that all goods sold in a particular market must be accompanied by a warranty that covers defects in material and workmanship for a period of one year. Which of the following is a consequence of this law?
A. Increased cost of production for manufacturers
B. Reduced sales for retailers
Correct C. Improved quality of goods sold in the market
D. Increased competition among manufacturers

Correct Answer: C

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Question 9
A company's financial statements show that its revenue increased by 15% and its expenses decreased by 10% compared to the previous year. What is the effect on the company's net profit?
Correct A. Increased by 5%
B. Decreased by 5%
C. Increased by 10%
D. Decreased by 10%

Correct Answer: A

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Question 10
A sole trader's business is affected by a natural disaster, resulting in a loss of ₦500,000. The sole trader has a liability of ₦200,000 and an asset of ₦300,000. What is the sole trader's net loss?
A. ₦300,000
Correct B. ₦400,000
C. ₦500,000
D. ₦600,000

Correct Answer: B

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Question 11
In a perfectly competitive market, the supply curve is determined by the marginal cost (MC) curve. If the MC curve shifts to the right, what will happen to the supply curve?
A. It will shift to the left
B. It will remain unchanged
Correct C. It will shift to the right
D. It will shift downwards

Correct Answer: C

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Question 12
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor increases by 20%, and the price of capital remains constant, what will happen to the firm's output?
A. It will increase by 10%
Correct B. It will decrease by 10%
C. It will remain unchanged
D. It will increase by 20%

Correct Answer: B

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Question 13
A consumer's budget constraint is given by 2X + 3Y = 12. If the price of good X increases by 50%, and the price of good Y remains constant, what will happen to the consumer's budget line?
Correct A. It will shift to the left
B. It will shift to the right
C. It will remain unchanged
D. It will shift downwards

Correct Answer: A

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Question 14
A firm's demand function is given by Q = 100 - 2P. If the price of the good increases by 20%, what will happen to the firm's revenue?
A. It will increase by 20%
Correct B. It will decrease by 20%
C. It will remain unchanged
D. It will increase by 40%

Correct Answer: B

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Question 15
A consumer's indifference curve is given by U = 2X + 3Y. If the price of good X increases by 50%, and the price of good Y remains constant, what will happen to the consumer's indifference curve?
Correct A. It will shift to the left
B. It will shift to the right
C. It will remain unchanged
D. It will shift downwards

Correct Answer: A

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Question 16
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor increases by 20%, and the price of capital remains constant, what will happen to the firm's marginal product of labor?
A. It will increase by 10%
Correct B. It will decrease by 10%
C. It will remain unchanged
D. It will increase by 20%

Correct Answer: B

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Question 17
A consumer's budget constraint is given by 2X + 3Y = 12. If the price of good X increases by 50%, and the price of good Y remains constant, what will happen to the consumer's budget line?
Correct A. It will shift to the left
B. It will shift to the right
C. It will remain unchanged
D. It will shift downwards

Correct Answer: A

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Question 18
A firm's demand function is given by Q = 100 - 2P. If the price of the good increases by 20%, what will happen to the firm's revenue?
A. It will increase by 20%
Correct B. It will decrease by 20%
C. It will remain unchanged
D. It will increase by 40%

Correct Answer: B

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Question 19
A consumer's indifference curve is given by U = 2X + 3Y. If the price of good X increases by 50%, and the price of good Y remains constant, what will happen to the consumer's indifference curve?
Correct A. It will shift to the left
B. It will shift to the right
C. It will remain unchanged
D. It will shift downwards

Correct Answer: A

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Question 20
In a perfectly competitive market, the supply curve is typically represented by a:
Correct A. Horizontal Line
B. Vertical Line
C. U-Shaped Curve
D. S-Shaped Curve

Correct Answer: A

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Question 21
A sole trader's business is characterized by:
A. Limited Liability
Correct B. Unlimited Liability
C. Separate Legal Entity
D. No Partnership

Correct Answer: B

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Question 22
The marketing mix consists of:
Correct A. Product, Price, Place, Promotion
B. Product, Price, Place, People
C. Product, Price, Promotion, Process
D. Product, Place, Promotion, People

Correct Answer: A

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Question 23
A company's financial statement includes:
Correct A. Balance Sheet, Income Statement, Cash Flow Statement
B. Balance Sheet, Income Statement, Statement of Changes in Equity
C. Balance Sheet, Cash Flow Statement, Statement of Changes in Equity
D. Income Statement, Cash Flow Statement, Statement of Changes in Equity

Correct Answer: A

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Question 24
The concept of specialization in production refers to:
A. Producing a single product in large quantities
B. Producing multiple products in small quantities
Correct C. Dividing labor into smaller tasks to increase efficiency
D. Using technology to automate production processes

Correct Answer: C

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Question 25
The diagram below represents a:
A. Supply Curve
B. Demand Curve
C. Equilibrium Price
Correct D. Market Equilibrium

Correct Answer: D

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