POST UTME DELSU 2022 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 2022 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A firm's production function is given by Q = 2L^0.5H^0.5, where Q is the quantity produced, L is labor, and H is capital. If the firm wants to increase its production by 20% while keeping labor constant at 16 units, how much should it increase its capital?
A. 32 units
B. 64 units
Correct C. 128 units
D. 256 units

Correct Answer: C

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Question 2
A company imports goods worth ₦5 million from a foreign country. If the exchange rate is 1 USD = ₦420, how much is the company paying in USD?
A. ₦2,100,000
B. ₦2,400,000
C. ₦2,700,000
Correct D. ₦3,000,000

Correct Answer: D

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Question 3
A firm's revenue function is given by R(x) = 2x^2 + 10x, where x is the number of units sold. If the firm wants to maximize its revenue, what is the optimal number of units to sell?
A. 5 units
Correct B. 10 units
C. 15 units
D. 20 units

Correct Answer: B

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Question 4
A firm's cost function is given by C(x) = 2x^2 + 10x, where x is the number of units produced. If the firm produces 10 units, what is the total cost?
A. ₦100
B. ₦200
Correct C. ₦300
D. ₦400

Correct Answer: C

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Question 5
A firm's profit function is given by P(x) = R(x) - C(x), where R(x) is the revenue function and C(x) is the cost function. If the firm produces 10 units, what is the profit?
A. ₦100
B. ₦200
Correct C. ₦300
D. ₦400

Correct Answer: C

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Question 6
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 well-planned marketing mix?
A. It is flexible and adaptable to changing market conditions.
B. It is focused on a specific target market.
C. It is based on a thorough analysis of the company's resources and capabilities.
Correct D. It is solely dependent on advertising and sales promotions.

Correct Answer: D

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Question 7
A consumer protection agency is investigating a complaint about a company's warranty policy. The agency discovers that the company has a history of denying warranty claims. Which of the following is a potential consequence of the company's actions?
A. The company may face a lawsuit from the consumer protection agency.
Correct B. The company's reputation may be damaged, leading to a loss of customer trust.
C. The company may be required to pay a fine to the government.
D. The company's warranty policy may be deemed invalid.

Correct Answer: B

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Question 8
A company is considering implementing a new insurance policy to protect against business risks. Which of the following is a key factor in determining the premium rate for the policy?
A. The company's financial stability.
B. The type of business the company operates in.
Correct C. The level of risk associated with the company's operations.
D. The company's location.

Correct Answer: C

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Question 9
A warehouse is storing a large quantity of perishable goods. Which of the following is a key consideration for the warehouse manager when determining the optimal storage conditions?
Correct A. The temperature of the storage area.
B. The humidity level of the storage area.
C. The type of shelving used in the storage area.
D. The location of the storage area.

Correct Answer: A

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Question 10
A company is considering implementing a new marketing strategy that involves social media advertising. Which of the following is a key benefit of using social media advertising?
Correct A. It allows for targeted advertising to specific demographics.
B. It is a cost-effective way to reach a large audience.
C. It provides real-time feedback from customers.
D. It is a guaranteed way to increase sales.

Correct Answer: A

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Question 11
A company is considering two marketing strategies: one that targets a niche market with a high-end product and another that targets a broader market with a lower-end product. Which strategy is more likely to result in higher profits?
Correct A. Targeting a niche market with a high-end product
B. Targeting a broader market with a lower-end product
C. Targeting a niche market with a lower-end product
D. Targeting a broader market with a high-end product

Correct Answer: A

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Question 12
A sole trader has a business income of ₦500,000 and expenses of ₦300,000. What is the business's profit?
Correct A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000

Correct Answer: A

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Question 13
A company has a 10% dividend yield on its shares. If the current market price of the shares is ₦100, what is the dividend per share?
Correct A. ₦10
B. ₦9
C. ₦8
D. ₦7

Correct Answer: A

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Question 14
A business has a 20% increase in sales from last year. If the sales last year were ₦1,000,000, what are the sales this year?
Correct A. ₦1,200,000
B. ₦1,200,000
C. ₦1,200,000
D. ₦1,200,000

Correct Answer: A

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Question 15
A company has a 15% increase in profits from last year. If the profits last year were ₦500,000, what are the profits this year?
Correct A. ₦575,000
B. ₦575,000
C. ₦575,000
D. ₦575,000

Correct Answer: A

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Question 16
What is the primary function of the International Chamber of Commerce (ICC) in facilitating international trade?
A. To provide a platform for governments to negotiate trade agreements
Correct B. To establish a set of rules and guidelines for international trade
C. To promote the use of electronic data interchange (EDI) in international trade
D. To provide financing for international trade transactions

Correct Answer: B

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Question 17
A firm is considering exporting its products to a foreign market. Which of the following is a major advantage of exporting?
A. Increased competition from local firms
Correct B. Access to new markets and customers
C. Reduced production costs due to economies of scale
D. Increased risk of currency fluctuations

Correct Answer: B

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Question 18
A company is considering investing in a new production facility. Which of the following is a major consideration in the decision-making process?
A. The cost of raw materials
B. The availability of skilled labor
Correct C. The potential for economies of scale
D. The impact on the environment

Correct Answer: C

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Question 19
A firm is considering using a new marketing strategy. Which of the following is a major advantage of using social media marketing?
A. Increased brand awareness
Correct B. Improved customer engagement
C. Reduced marketing costs
D. Increased sales revenue

Correct Answer: B

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Question 20
A company is considering entering a new market. Which of the following is a major consideration in the decision-making process?
A. The size of the market
B. The level of competition
C. The potential for growth
Correct D. The cultural differences

Correct Answer: D

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Question 21
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 commodity in this market?
A. ₦100, 100 units
Correct B. ₦120, 80 units
C. ₦150, 60 units
D. ₦180, 40 units

Correct Answer: B

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Question 22
A company's production function is given by the equation Q = 2L^2 + 5K, where Q is the quantity produced, L is the number of labor hours, and K is the capital invested. If the company wants to produce 100 units of output, how many labor hours and capital invested are required?
Correct A. L = 5, K = 10
B. L = 10, K = 5
C. L = 15, K = 20
D. L = 20, K = 15

Correct Answer: A

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Question 23
A firm's cost function is given by the equation C = 2L + 3K, where C is the total cost, L is the number of labor hours, and K is the capital invested. If the firm wants to minimize its cost, what is the optimal combination of labor and capital?
A. L = 5, K = 10
Correct B. L = 10, K = 5
C. L = 15, K = 20
D. L = 20, K = 15

Correct Answer: B

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Question 24
A company's revenue function is given by the equation R = 2Q^2 - 5Q, where R is the total revenue and Q is the quantity sold. If the company wants to maximize its revenue, what is the optimal quantity to sell?
A. Q = 5
Correct B. Q = 10
C. Q = 15
D. Q = 20

Correct Answer: B

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Question 25
A firm's profit function is given by the equation P = R - C, where P is the profit, R is the revenue, and C is the cost. If the firm's revenue function is R = 2Q^2 - 5Q and its cost function is C = 2L + 3K, what is the optimal combination of labor and capital to maximize profit?
A. L = 5, K = 10
Correct B. L = 10, K = 5
C. L = 15, K = 20
D. L = 20, K = 15

Correct Answer: B

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