POST UTME UNN 2018 Commerce | Objective

Are you preparing for POST UTME UNN 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.

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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 product in such a market?
A. (P = 10, Q = 100)
B. (P = 20, Q = 50)
Correct C. (P = 15, Q = 75)
D. (P = 25, Q = 25)

Correct Answer: C

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Question 2
A company has a production function (Q = 2L^{0.5}K^{0.5}), where (L) is labor and (K) is capital. If the company wants to produce 100 units of output, how much labor and capital should it employ?
A. (L = 10, K = 10)
B. (L = 20, K = 5)
C. (L = 5, K = 20)
Correct D. (L = 15, K = 15)

Correct Answer: D

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Question 3
A firm has a cost function (C = 10 + 2L + 3K), where (L) is labor and (K) is capital. If the firm hires 5 units of labor and 10 units of capital, what is its total cost?
A. (C = 50)
Correct B. (C = 60)
C. (C = 70)
D. (C = 80)

Correct Answer: B

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Question 4
A bank has a reserve requirement of 20% and a cash reserve of ₦100,000. If the bank wants to increase its loans by ₦500,000, how much additional deposits will it need?
A. ₦200,000
Correct B. ₦250,000
C. ₦300,000
D. ₦350,000

Correct Answer: B

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Question 5
A company has a marketing budget of ₦1,000,000 and wants to allocate it between advertising and sales promotion. If the company wants to allocate 60% of the budget to advertising, how much will it allocate to sales promotion?
A. ₦200,000
B. ₦300,000
Correct C. ₦400,000
D. ₦500,000

Correct Answer: C

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Question 6
A company's marketing strategy involves creating a new product line that caters to the needs of a specific demographic. The product line is designed to appeal to the younger generation, aged between 18 and 30. Which of the following marketing strategies is most likely to be used by this company?
A. Segmentation
Correct B. Target Marketing
C. Positioning
D. Product Differentiation

Correct Answer: B

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Question 7
A sole trader is a business owned and operated by one individual. What are the advantages of being a sole trader?
A. Limited liability
B. Easy to set up
Correct C. Flexibility in decision-making
D. Access to capital

Correct Answer: C

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Question 8
A company is considering exporting its products to a foreign market. What are the benefits of exporting?
A. Increased market share
B. Reduced competition
Correct C. Access to new markets and customers
D. Improved brand image

Correct Answer: C

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Question 9
A consumer has purchased a product that has been damaged during delivery. What is the consumer's right under the Consumer Protection Act?
Correct A. To return the product for a full refund
B. To exchange the product for a similar one
C. To claim compensation for the damage
D. To cancel the purchase

Correct Answer: A

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Question 10
A company has purchased an insurance policy to cover against business risks. What is the purpose of the insurance policy?
A. To reduce the company's liability
B. To increase the company's assets
Correct C. To protect the company against business risks
D. To improve the company's cash flow

Correct Answer: C

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Question 11
A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is NOT a characteristic of a successful marketing strategy?
A. It must be consistent with the company's overall business objectives.
B. It must be tailored to the specific needs of the target market.
Correct C. It must be implemented without any budget allocation.
D. It must be evaluated regularly to ensure its effectiveness.

Correct Answer: C

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Question 12
A sole trader's business is registered as 'John Doe' at the Corporate Affairs Commission (CAC). Which of the following is a benefit of registering a business as a sole trader?
A. It provides limited liability protection for the owner.
B. It allows for easy transfer of ownership.
C. It provides tax benefits for the owner.
Correct D. It is a simple and inexpensive way to start a business.

Correct Answer: D

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Question 13
A company's warehouse is stocked with 500 units of a product. The company uses a First-In-First-Out (FIFO) inventory system. If 150 units are sold, what is the new quantity of the product in the warehouse?
Correct A. 350
B. 400
C. 450
D. 500

Correct Answer: A

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Question 14
A company exports 1000 units of a product to a foreign country. The export price is 10 per unit. If the exchange rate is 1 USD = 360 Naira, what is the total value of the export in Naira?
A. ₦120,000
Correct B. ₦180,000
C. ₦240,000
D. ₦360,000

Correct Answer: B

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Question 15
A company uses a road transport service to deliver its products. The company pays ₦500 per kilometer for the delivery. If the delivery distance is 200 kilometers, what is the total cost of the delivery?
A. ₦100,000
B. ₦150,000
Correct C. ₦200,000
D. ₦250,000

Correct Answer: C

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Question 16
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied
A. decreases
Correct B. increases
C. remains constant
D. fluctuates

Correct Answer: B

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Question 17
A firm's revenue is calculated as the product of the price per unit and the quantity sold. If the price per unit is ₦50 and the quantity sold is 100 units, what is the total revenue?
A. ₦5000
Correct B. ₦50000
C. ₦500000
D. ₦5000000

Correct Answer: B

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Question 18
A consumer protection agency is responsible for enforcing laws that protect consumers from unfair business practices. Which of the following is an example of an unfair business practice?
A. False advertising
B. Price fixing
C. Bait and switch
Correct D. All of the above

Correct Answer: D

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Question 19
A firm's cost of production includes both fixed and variable costs. If the fixed cost is ₦10000 and the variable cost is ₦50 per unit, and the firm produces 100 units, what is the total cost of production?
A. ₦15000
B. ₦20000
Correct C. ₦25000
D. ₦30000

Correct Answer: C

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Question 20
A firm's profit is calculated as the difference between revenue and cost of production. If the revenue is ₦50000 and the cost of production is ₦30000, what is the profit?
A. ₦10000
Correct B. ₦20000
C. ₦30000
D. ₦40000

Correct Answer: B

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Question 21
A bank's cash reserve ratio is 20%. If the bank has a total deposit of ₦1,000,000, what is the minimum amount of cash it must hold in reserve?
Correct A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦400,000

Correct Answer: A

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Question 22
A company's sole trader has a profit of ₦500,000. If the company's tax rate is 25%, what is the amount of tax the sole trader must pay?
A. ₦100,000
Correct B. ₦125,000
C. ₦150,000
D. ₦200,000

Correct Answer: B

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Question 23
A foreign trade agreement between two countries involves the exchange of goods worth ₦1,000,000. If the exchange rate is 1 USD = ₦500, what is the equivalent value of the goods in USD?
A. 2,000
Correct B. 2,500
C. 3,000
D. 4,000

Correct Answer: B

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Question 24
A company's insurance policy has a deductible of ₦50,000. If the company's annual premium is ₦500,000, what is the amount of the premium that is not deductible?
A. ₦450,000
B. ₦475,000
Correct C. ₦500,000
D. ₦525,000

Correct Answer: C

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Question 25
A transport company has a fleet of 10 trucks, each with a capacity of 5 tons. If the company's average load per truck is 4 tons, what is the total weight of the loads carried by the fleet?
A. 200 tons
B. 250 tons
Correct C. 300 tons
D. 400 tons

Correct Answer: C

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