POST UTME DELSU 2017 Commerce | Objective

Are you preparing for POST UTME DELSU exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2017 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 commodity increases, the quantity supplied will
A. increase
Correct B. decrease
C. remain constant
D. move in the opposite direction

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A company's production function is given by Q = 2L^0.5K^0.5. If the company wants to increase its output by 25% while keeping the capital stock constant, what percentage increase in labor is required?
A. 10%
B. 15%
Correct C. 20%
D. 25%

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A consumer has a budget of ₦1000 and a preference for two goods, A and B. The prices of the goods are ₦200 and ₦300 respectively. Using the budget constraint, find the maximum quantity of good A that the consumer can buy.
A. 2 units
Correct B. 3 units
C. 4 units
D. 5 units

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A firm is considering two different production processes to produce a certain good. Process A requires an initial investment of ₦5000 and has a fixed cost of ₦1000 per unit produced. Process B requires an initial investment of ₦3000 and has a fixed cost of ₦500 per unit produced. If the firm wants to produce 100 units of the good, which process should it choose?
A. Process A
Correct B. Process B
C. Both processes are equally profitable
D. Neither process is profitable

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A company is considering two different marketing strategies to promote its product. Strategy A involves a one-time payment of ₦10000 to a celebrity to endorse the product, while Strategy B involves a series of smaller payments of ₦500 each to a group of influencers to promote the product. If the company wants to spend a total of ₦20000 on marketing, which strategy should it choose?
A. Strategy A
Correct B. Strategy B
C. Both strategies are equally effective
D. Neither strategy is effective

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
A company is considering the introduction of a new product line. The product has a fixed cost of ₦1,500,000 and a variable cost of ₦500 per unit. The selling price of the product is ₦1,200 per unit. If the company expects to sell 10,000 units, what is the minimum price at which the product should be sold to break even?
A. ₦1,200
B. ₦1,500
Correct C. ₦1,800
D. ₦2,100

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A firm is considering the introduction of a new product. The product has a fixed cost of ₦3,000,000 and a variable cost of ₦1,000 per unit. The selling price of the product is ₦2,500 per unit. If the firm expects to sell 20,000 units, what is the minimum price at which the product should be sold to break even?
A. ₦2,500
B. ₦3,000
Correct C. ₦3,500
D. ₦4,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A company is considering the introduction of a new product line. The product has a fixed cost of ₦2,000,000 and a variable cost of ₦750 per unit. The selling price of the product is ₦1,800 per unit. If the company expects to sell 15,000 units, what is the minimum price at which the product should be sold to break even?
A. ₦1,800
B. ₦2,250
Correct C. ₦2,700
D. ₦3,150

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A firm is considering the introduction of a new product. The product has a fixed cost of ₦4,500,000 and a variable cost of ₦1,250 per unit. The selling price of the product is ₦3,000 per unit. If the firm expects to sell 25,000 units, what is the minimum price at which the product should be sold to break even?
A. ₦3,000
B. ₦4,000
Correct C. ₦4,500
D. ₦5,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A company is considering the introduction of a new product line. The product has a fixed cost of ₦6,000,000 and a variable cost of ₦1,500 per unit. The selling price of the product is ₦4,500 per unit. If the company expects to sell 30,000 units, what is the minimum price at which the product should be sold to break even?
A. ₦4,500
B. ₦5,500
Correct C. ₦6,500
D. ₦7,500

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
In a sole trade business, the owner's capital is ₦250,000. If the business generates a profit of ₦120,000, what is the owner's new capital?
A. ₦370,000
B. ₦350,000
C. ₦370,000
Correct D. ₦370,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A company's balance sheet shows total assets of ₦1,500,000 and total liabilities of ₦800,000. What is the company's equity?
A. ₦700,000
B. ₦700,000
C. ₦700,000
Correct D. ₦700,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A risk management strategy involves diversification of investments to minimize risk. What is the primary benefit of diversification?
A. Increased risk
Correct B. Reduced risk
C. No change in risk
D. Increased return on investment

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A bank's reserve requirement is 10%. If the bank has ₦1,000,000 in deposits, how much must it keep in reserve?
A. ₦100,000
B. ₦100,000
C. ₦100,000
Correct D. ₦100,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A company's financial statement shows a net income of ₦500,000. If the company's tax rate is 25%, what is the company's tax liability?
A. ₦125,000
B. ₦125,000
C. ₦125,000
Correct D. ₦125,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
The Central Bank of Nigeria (CBN) uses monetary policy to control inflation by increasing the reserve requirement for commercial banks. This action will lead to a decrease in the money supply, which will cause a decrease in the aggregate demand. However, if the CBN also increases the interest rate, it will lead to a decrease in consumption and investment, but an increase in the exchange rate. What is the likely effect on the trade balance?
A. An increase in the trade deficit
Correct B. A decrease in the trade deficit
C. No change in the trade balance
D. An increase in the trade surplus

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A company has the following financial statements for the year ended December 31, 2019:
A. ₦1,500,000
B. ₦1,200,000
Correct C. ₦1,800,000
D. ₦2,000,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A consumer protection agency is considering a complaint against a company that has been accused of making false and misleading advertisements. The agency has gathered evidence that the company has made several false claims about its products. What is the likely outcome of the agency's investigation?
A. The company will be fined ₦500,000
Correct B. The company will be ordered to stop making false claims
C. The company will be sued for damages
D. The agency will drop the complaint

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A company is considering exporting its products to a foreign country. The company has identified several potential risks associated with exporting, including political risk, currency risk, and country risk. What is the most likely risk that the company will face?
A. Political risk
B. Currency risk
C. Country risk
Correct D. All of the above

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A company has the following balance sheet as at December 31, 2019:
A. ₦1,000,000
B. ₦1,500,000
Correct C. ₦2,000,000
D. ₦2,500,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
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

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A firm's cost function is given by C(x) = 2x^2 + 5x + 10. If the firm produces 10 units of output, its total cost is
A. ₦150
Correct B. ₦200
C. ₦250
D. ₦300

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A firm's revenue function is given by R(x) = 3x^2 - 2x + 5. If the firm produces 5 units of output, its marginal revenue is
A. ₦10
Correct B. ₦15
C. ₦20
D. ₦25

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A firm's cost function is given by C(x) = 2x^2 + 5x + 10. If the firm produces 10 units of output, its average cost is
A. ₦15
B. ₦20
Correct C. ₦25
D. ₦30

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A firm's revenue function is given by R(x) = 3x^2 - 2x + 5. If the firm produces 5 units of output, its total revenue is
A. ₦50
B. ₦60
Correct C. ₦70
D. ₦80

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support