POST UTME RSU 2021 Commerce | Objective

Are you preparing for POST UTME RSU exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2021 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 determined by the marginal cost curve. True or False?
A. True
Correct B. False
C. Depends on the market structure
D. Marginal revenue curve is more relevant

Correct Answer: B

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Question 2
A company's marketing mix can be described by the 4 Ps. What does the 'P' stand for in the 'Pricing' component?
A. Product
B. Place
C. Promotion
Correct D. Price

Correct Answer: D

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Question 3
A firm's revenue function is given by R(x) = 100x - 2x^2. What is the marginal revenue function?
Correct A. ( R'(x) = 100 - 4x )
B. ( R'(x) = 100 + 4x )
C. ( R'(x) = 100x - 2x^2 )
D. ( R'(x) = 100x + 2x^2 )

Correct Answer: A

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Question 4
A consumer's indifference curve is given by the equation u(x,y) = 2x + 3y. What is the marginal utility of x?
Correct A. ( MU_x = 2 )
B. ( MU_x = 3 )
C. ( MU_x = 4 )
D. ( MU_x = 5 )

Correct Answer: A

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Question 5
A company's stock control system uses a first-in-first-out (FIFO) inventory method. What is the main advantage of this method?
A. It minimizes stockouts
B. It maximizes profits
C. It reduces inventory costs
Correct D. It ensures accurate inventory valuation

Correct Answer: D

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Question 6
A company's production function is given by the Cobb-Douglas production function: Q = 10L^0.4K^0.6, where Q is the output, L is labor, and K is capital. If the company wants to increase its output by 20% while keeping labor constant, what percentage increase in capital is required?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 7
A firm is considering two different production processes: Process A and Process B. Process A has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit. Process B has a fixed cost of ₦150,000 and a variable cost of ₦30 per unit. If the firm produces 10,000 units, what is the total cost of production for each process?
A. ₦1,500,000
Correct B. ₦1,650,000
C. ₦1,800,000
D. ₦2,000,000

Correct Answer: B

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Question 8
A consumer has a budget of ₦10,000 and a preference for two goods: X and Y. The prices of the goods are ₦2,000 and ₦3,000 respectively. Using the budget constraint equation, find the consumer's optimal consumption bundle.
Correct A. X = 2, Y = 1
B. X = 3, Y = 2
C. X = 4, Y = 3
D. X = 5, Y = 4

Correct Answer: A

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Question 9
A firm is considering a new marketing strategy to increase sales. The firm's current market share is 20% and the industry growth rate is 5%. Using the market share equation, find the firm's new market share after one year.
A. 25%
Correct B. 30%
C. 35%
D. 40%

Correct Answer: B

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Question 10
A company's production function is given by the production function: Q = 10L^0.4K^0.6, where Q is the output, L is labor, and K is capital. If the company wants to increase its output by 20% while keeping labor constant, what percentage increase in capital is required?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 11
The Consumer Protection Act of 1999 provides for the protection of consumers from unfair trade practices. Which of the following is a key provision of the Act?
A. The Act provides for the establishment of a Consumer Protection Council.
Correct B. The Act provides for the protection of consumers from unfair trade practices.
C. The Act provides for the establishment of a Consumer Protection Tribunal.
D. The Act provides for the protection of consumers from false advertising.

Correct Answer: B

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Question 12
A company has a sole trader business structure. What is the primary advantage of this structure?
A. The company has unlimited liability.
B. The company has limited liability.
C. The company has a separate legal entity.
Correct D. The company has a sole owner.

Correct Answer: D

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Question 13
A company has a joint stock business structure. What is the primary advantage of this structure?
A. The company has unlimited liability.
B. The company has limited liability.
C. The company has a separate legal entity.
Correct D. The company has multiple owners.

Correct Answer: D

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Question 14
A company has a partnership business structure. What is the primary advantage of this structure?
A. The company has unlimited liability.
B. The company has limited liability.
C. The company has a separate legal entity.
Correct D. The company has multiple owners.

Correct Answer: D

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Question 15
A company has a sole trader business structure. What is the primary disadvantage of this structure?
Correct A. The company has unlimited liability.
B. The company has limited liability.
C. The company has a separate legal entity.
D. The company has a sole owner.

Correct Answer: A

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Question 16
A company's marketing strategy involves a mix of advertising and public relations. Which of the following is a key benefit of using public relations in a marketing mix?
A. Increased brand awareness
B. Improved customer loyalty
Correct C. Enhanced reputation
D. Increased sales

Correct Answer: C

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Question 17
A sole trader's business is affected by the economic downturn. Which of the following is a potential consequence of this?
A. Increased revenue
B. Decreased expenses
Correct C. Reduced profit
D. No impact

Correct Answer: C

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Question 18
A company's financial statements show a decrease in revenue and an increase in expenses. Which of the following is a potential cause of this?
A. Increased competition
B. Economic downturn
C. Poor management
Correct D. All of the above

Correct Answer: D

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Question 19
A marketing manager is tasked with increasing sales for a new product. Which of the following marketing strategies would be most effective?
A. Social media advertising
Correct B. Influencer marketing
C. Content marketing
D. Event marketing

Correct Answer: B

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Question 20
A company's insurance policy covers damage to its assets. Which of the following is a potential benefit of this policy?
A. Reduced expenses
B. Increased revenue
Correct C. Protection against loss
D. Improved reputation

Correct Answer: C

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Question 21
In a sole trade business, what is the primary advantage of using a sole proprietorship structure?
A. Limited liability
B. Easy setup and registration
Correct C. Flexibility in decision-making
D. Access to capital markets

Correct Answer: C

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Question 22
A company has a share capital of ₦5 million, divided into 500,000 ordinary shares of ₦10 each. If the company issues 200,000 shares to the public, what is the amount of share capital raised?
A. ₦1 million
Correct B. ₦2 million
C. ₦3 million
D. ₦4 million

Correct Answer: B

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Question 23
A consumer purchases a product with a price of ₦5,000 and a 10% discount. If the consumer pays ₦4,500, what is the amount of the discount?
Correct A. ₦500
B. ₦1,000
C. ₦1,500
D. ₦2,000

Correct Answer: A

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Question 24
A company has a warehouse with a capacity of 10,000 units. If the company receives a shipment of 8,000 units, what is the percentage of the warehouse capacity utilized?
A. 50%
Correct B. 60%
C. 70%
D. 80%

Correct Answer: B

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Question 25
A company has a policy of paying its employees a 10% bonus on their annual salaries. If an employee has an annual salary of ₦200,000, what is the amount of the bonus?
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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