POST UTME UNN 2025 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 2025 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is output, L is labor, and K is capital. If the firm wants to increase its output by 20% while keeping labor constant, what percentage increase in capital is required?
Correct A. 10%
B. 20%
C. 30%
D. 40%

Correct Answer: A

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Question 2
A consumer has a utility function U(x, y) = 2x + 3y. The prices of x and y are 2 and 3, respectively. If the consumer's income is 100, what is the optimal bundle of x and y?
A. x = 20, y = 10
Correct B. x = 15, y = 15
C. x = 10, y = 20
D. x = 5, y = 25

Correct Answer: B

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Question 3
A firm has a production function Q = 2L^(1/2)K^(1/2). If the firm wants to increase its output by 20% while keeping labor constant, what percentage increase in capital is required?
Correct A. 10%
B. 20%
C. 30%
D. 40%

Correct Answer: A

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Question 4
A consumer has a utility function U(x, y) = 2x + 3y. The prices of x and y are 2 and 3, respectively. If the consumer's income is 100, what is the optimal bundle of x and y?
A. x = 20, y = 10
Correct B. x = 15, y = 15
C. x = 10, y = 20
D. x = 5, y = 25

Correct Answer: B

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Question 5
A firm has a production function Q = 2L^(1/2)K^(1/2). If the firm wants to increase its output by 20% while keeping labor constant, what percentage increase in capital is required?
Correct A. 10%
B. 20%
C. 30%
D. 40%

Correct Answer: A

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Question 6
In a perfectly competitive market, the supply curve is typically represented by a downward-sloping curve. Which of the following best describes the reason for this downward slope?
A. As the price of the good increases, the quantity supplied also increases.
Correct B. As the price of the good increases, the quantity supplied decreases.
C. As the price of the good increases, the quantity supplied remains constant.
D. As the price of the good increases, the quantity supplied increases at a decreasing rate.

Correct Answer: B

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Question 7
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. 32
B. 64
Correct C. 128
D. 256

Correct Answer: C

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Question 8
A company has a cash budget of ₦1,500,000 for the next quarter. If the company's cash outflows are ₦500,000 per month, what is the maximum number of months the company can operate without running out of cash?
A. 2
Correct B. 3
C. 4
D. 5

Correct Answer: B

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Question 9
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is ₦20, what is the firm's current quantity demanded?
A. 80
B. 90
Correct C. 100
D. 110

Correct Answer: C

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Question 10
A company has a portfolio of assets with the following returns: Asset A = 10%, Asset B = 12%, Asset C = 15%. If the company's current portfolio is equally weighted, what is the expected return on the portfolio?
A. 12%
Correct B. 13%
C. 14%
D. 15%

Correct Answer: B

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Question 11
A sole trader's business is considered a separate legal entity from its owner. However, in the event of a lawsuit, the owner's personal assets may be at risk. Which of the following best describes this situation?
A. Separate legal entity with limited liability
B. No separate legal entity with unlimited liability
C. Separate legal entity with unlimited liability
Correct D. No separate legal entity with limited liability

Correct Answer: D

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Question 12
A company's marketing strategy involves creating a brand identity that appeals to a specific demographic. Which of the following marketing mix elements is most relevant to this strategy?
A. Product
B. Price
Correct C. Promotion
D. Place

Correct Answer: C

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Question 13
A business owner purchases a life insurance policy to protect their business in the event of their death. Which of the following types of insurance is most relevant to this scenario?
Correct A. Term Life Insurance
B. Whole Life Insurance
C. Universal Life Insurance
D. Variable Life Insurance

Correct Answer: A

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Question 14
A bank's reserve requirement is 10%. If the bank has a reserve balance of ₦100,000, how much in new deposits can it accept?
Correct A. ₦1,000,000
B. ₦900,000
C. ₦1,100,000
D. ₦1,200,000

Correct Answer: A

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Question 15
A company's inventory management system uses the First-In-First-Out (FIFO) method. If the company has 100 units of a product with a cost of ₦50 each, and 20 units are sold, what is the total cost of the units sold?
A. ₦1,000
Correct B. ₦1,200
C. ₦1,400
D. ₦1,600

Correct Answer: B

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Question 16
A company is accused of violating the Consumer Protection Act by selling a product with a misleading label. The company claims that the label was approved by a regulatory agency. However, the agency denies any involvement. Which of the following is the most appropriate course of action for the company?
A. To continue selling the product with the same label
B. To recall the product and replace the label with a new one
Correct C. To seek legal advice from a lawyer
D. To ignore the allegations and continue business as usual

Correct Answer: C

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Question 17
A marketing firm is tasked with creating a social media campaign for a new product. The product's target audience is young adults aged 18-24. Which of the following social media platforms would be most effective for reaching this audience?
A. Facebook
B. Instagram
C. Twitter
Correct D. TikTok

Correct Answer: D

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Question 18
A company is considering outsourcing its logistics to a third-party provider. However, the company is concerned about the potential risks associated with outsourcing. Which of the following is a key benefit of outsourcing logistics?
A. Increased control over the supply chain
B. Improved customer service
Correct C. Reduced costs
D. Enhanced brand reputation

Correct Answer: C

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Question 19
A warehouse is storing a large quantity of perishable goods. The warehouse manager is concerned about the potential for spoilage and wants to implement a system to track the expiration dates of the goods. Which of the following is the most effective method for tracking expiration dates?
A. Using a spreadsheet to track expiration dates
Correct B. Implementing a barcode scanning system
C. Using a mobile app to track expiration dates
D. Creating a physical logbook to track expiration dates

Correct Answer: B

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Question 20
A company is considering implementing a just-in-time (JIT) production system. However, the company is concerned about the potential risks associated with JIT production. Which of the following is a key benefit of JIT production?
A. Reduced inventory costs
B. Improved product quality
Correct C. Increased flexibility in production
D. Enhanced brand reputation

Correct Answer: C

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Question 21
The Central Bank of Nigeria (CBN) uses monetary policy to regulate the money supply in the economy. Which of the following instruments can the CBN use to reduce the money supply?
A. Open Market Operations (OMO)
Correct B. Reserve Requirements
C. Discount Rate
D. Selective Credit Controls

Correct Answer: B

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Question 22
A consumer protection agency has been established to protect consumers from unfair business practices. Which of the following is a key function of this agency?
Correct A. To investigate complaints from consumers
B. To provide education to consumers on their rights
C. To regulate business practices
D. To provide compensation to consumers

Correct Answer: A

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Question 23
A company is considering investing in a new project. The project has a high initial cost, but it is expected to generate a high return on investment. Which of the following is a key consideration for the company?
A. The company's financial resources
Correct B. The project's expected return on investment
C. The company's risk tolerance
D. The project's environmental impact

Correct Answer: B

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Question 24
A transport company is considering investing in a new fleet of vehicles. The company has two options: to purchase the vehicles outright or to lease them. Which of the following is a key consideration for the company?
A. The company's financial resources
B. The vehicles' expected lifespan
C. The company's risk tolerance
Correct D. The lease terms

Correct Answer: D

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Question 25
A production company is considering outsourcing a key component of its production process. Which of the following is a key consideration for the company?
A. The company's financial resources
B. The component's quality
C. The company's risk tolerance
Correct D. The outsourcing costs

Correct Answer: D

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