POST UTME UI 2021 Commerce | Objective

Are you preparing for POST UTME UI 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 law of supply states that as the price of a good increases, the quantity supplied will
A. decrease
Correct B. increase
C. remain constant
D. move in the opposite direction

Correct Answer: B

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Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the price of labor is ₦100 per unit, and the price of capital is ₦200 per unit, what is the minimum cost of production?
A. ₦400
B. ₦800
Correct C. ₦1200
D. ₦1600

Correct Answer: C

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Question 3
A consumer has the following indifference curve: U = 2x + 3y. If the consumer's income is ₦1000, and the prices of x and y are ₦50 and ₦75 respectively, what is the consumer's optimal bundle?
A. (10, 5)
Correct B. (15, 3)
C. (20, 2)
D. (25, 1)

Correct Answer: B

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Question 4
A firm's demand function is given by Q = 100 - 2P. If the firm's revenue is ₦5000, and the price of the good is ₦50, what is the firm's marginal revenue?
A. ₦100
Correct B. ₦200
C. ₦300
D. ₦400

Correct Answer: B

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Question 5
A consumer has the following budget constraint: 2x + 3y = 100. If the consumer's indifference curve is given by U = x + 2y, and the prices of x and y are ₦50 and ₦75 respectively, what is the consumer's optimal bundle?
Correct A. (20, 10)
B. (15, 12)
C. (10, 15)
D. (5, 20)

Correct Answer: A

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Question 6
In a sole trade business, what is the primary advantage of using a sole trader as a business structure?
A. Limited liability
Correct B. Flexibility in decision-making
C. Easy to set up
D. No tax benefits

Correct Answer: B

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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 to the public, what is the amount of money received from the public?
A. ₦200,000
Correct B. ₦400,000
C. ₦600,000
D. ₦800,000

Correct Answer: B

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Question 8
A consumer protection law requires that all goods sold in a particular market must be labeled with their country of origin. Which of the following is a consequence of this law?
A. Increased competition among businesses
B. Reduced prices of goods
C. Improved quality of goods
Correct D. Increased transparency for consumers

Correct Answer: D

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Question 9
A marketing strategy involves creating a new product line for a company. Which of the following is a key consideration in this strategy?
Correct A. Target market analysis
B. Competitor analysis
C. Product life cycle analysis
D. Supply chain management

Correct Answer: A

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Question 10
A company uses a just-in-time inventory system. What is the primary advantage of this system?
Correct A. Reduced inventory costs
B. Improved product quality
C. Increased flexibility in production
D. Enhanced customer service

Correct Answer: A

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Question 11
In a perfectly competitive market, the supply curve is a
Correct A. Horizontal line
B. Vertical line
C. U-shaped curve
D. Inverted U-shaped curve

Correct Answer: A

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Question 12
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the wage rate is ₦100 per hour, and the rental rate is ₦200 per unit of capital, then the cost-minimizing input combination is
A. L = 4, K = 4
Correct B. L = 16, K = 1
C. L = 1, K = 16
D. L = 4, K = 16

Correct Answer: B

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Question 13
A consumer has the following indifference curves: IC1: 2U + 3V = 6, IC2: 2U + 3V = 9. If the consumer is initially at point (2,3) on IC1, and the price of good U is ₦5, and the price of good V is ₦10, then the consumer will move to the point
Correct A. (4,2)
B. (2,4)
C. (1,5)
D. (5,1)

Correct Answer: A

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Question 14
A firm's revenue function is given by R = 2Q^2 - 5Q + 3, where Q is the quantity sold. If the firm wants to maximize its revenue, then the optimal quantity to produce is
A. 1
B. 2
Correct C. 3
D. 4

Correct Answer: C

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Question 15
A consumer has the following budget constraint: 2U + 3V = 12, where U and V are the quantities of two goods. If the consumer is indifferent between the two goods, then the consumer's indifference curve is
A. 2U + 3V = 6
Correct B. 2U + 3V = 9
C. 2U + 3V = 12
D. 2U + 3V = 15

Correct Answer: B

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Question 16
A company's sole trader has a warehouse with a capacity of 10,000 units. If the company's current stock is 8,000 units and the demand rate is 500 units per day, what is the maximum number of days the company can maintain its current stock level without reordering?
A. 20 days
B. 30 days
Correct C. 40 days
D. 50 days

Correct Answer: C

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Question 17
A sole trader has a business that involves importing and exporting goods. If the trader's profit is ₦1,500 per unit and the cost of importing a unit is ₦1,200, what is the minimum number of units the trader must sell to break even?
A. 500 units
B. 750 units
Correct C. 1,000 units
D. 1,200 units

Correct Answer: C

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Question 18
A company's sole trader has a warehouse with a capacity of 10,000 units. If the company's current stock is 8,000 units and the demand rate is 500 units per day, what is the maximum number of days the company can maintain its current stock level without reordering?
A. 20 days
B. 30 days
Correct C. 40 days
D. 50 days

Correct Answer: C

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Question 19
A sole trader has a business that involves importing and exporting goods. If the trader's profit is ₦1,500 per unit and the cost of importing a unit is ₦1,200, what is the minimum number of units the trader must sell to break even?
A. 500 units
B. 750 units
Correct C. 1,000 units
D. 1,200 units

Correct Answer: C

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Question 20
A company's sole trader has a warehouse with a capacity of 10,000 units. If the company's current stock is 8,000 units and the demand rate is 500 units per day, what is the maximum number of days the company can maintain its current stock level without reordering?
A. 20 days
B. 30 days
Correct C. 40 days
D. 50 days

Correct Answer: C

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Question 21
In a perfectly competitive market, the demand curve for a firm's product is its
Correct A. marginal revenue curve
B. marginal cost curve
C. average revenue curve
D. average cost curve

Correct Answer: A

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Question 22
A company's production function is given by Q = 100L^0.5K^0.25. If the price of labor is ₦100 per unit and the price of capital is ₦200 per unit, and if the company wants to produce 100 units of output, what is the minimum cost of production?
A. ₦10,000
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

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Question 23
A firm's production function is given by Q = 2L^0.5K^0.5. If the price of labor is ₦50 per unit and the price of capital is ₦100 per unit, and if the firm wants to produce 4 units of output, what is the minimum cost of production?
A. ₦200
Correct B. ₦400
C. ₦600
D. ₦800

Correct Answer: B

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Question 24
A company's revenue function is given by R = 100Q - 2Q^2. If the company produces 10 units of output, what is its total revenue?
A. ₦800
Correct B. ₦900
C. ₦1,000
D. ₦1,100

Correct Answer: B

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Question 25
A firm's cost function is given by C = 50L + 20K. If the firm hires 5 units of labor and 2 units of capital, what is its total cost?
A. ₦300
B. ₦350
Correct C. ₦400
D. ₦450

Correct Answer: C

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