POST UTME ESUT 2019 Commerce | Objective

Are you preparing for POST UTME ESUT exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 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 diminishing marginal utility leads to a decrease in the marginal revenue product of a firm's inputs. What is the consequence of this decrease on the firm's production level?
A. The firm will increase its production level to maximize profits.
Correct B. The firm will decrease its production level to minimize costs.
C. The firm will maintain its current production level.
D. The firm will increase its production level to meet increasing demand.

Correct Answer: B

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Question 2
A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 70% full. If the company receives a new shipment of 5,000 units, what is the new percentage of the warehouse that is full?
A. 40%
B. 50%
Correct C. 60%
D. 70%

Correct Answer: C

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Question 3
A sole trader has a business income of ₦500,000 and business expenses of ₦200,000. What is the sole trader's business profit?
Correct A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000

Correct Answer: A

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Question 4
A company has a risk management strategy that involves diversification. What is the primary benefit of this strategy?
Correct A. Reduced risk
B. Increased returns
C. Improved liquidity
D. Enhanced reputation

Correct Answer: A

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Question 5
A company is considering investing in a new project with a expected return of 12% and a standard deviation of 8%. What is the company's expected return on investment?
A. 10%
Correct B. 12%
C. 14%
D. 16%

Correct Answer: B

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Question 6
In a perfectly competitive market, the supply curve is downward sloping because of the law of increasing marginal opportunity cost. What is the marginal opportunity cost?
A. Marginal cost
B. Marginal revenue
Correct C. Marginal factor cost
D. Marginal product

Correct Answer: C

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Question 7
A firm's revenue is given by the equation R = 100x - 2x^2. What is the marginal revenue?
Correct A. 100 - 4x
B. 100 + 4x
C. 100 - 2x
D. 100 + 2x

Correct Answer: A

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Question 8
A firm's cost function is given by the equation C = 50 + 10x + 2x^2. What is the marginal cost?
Correct A. 10 + 4x
B. 10 - 4x
C. 10 + 2x
D. 10 - 2x

Correct Answer: A

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Question 9
A firm's demand function is given by the equation Qd = 100 - 2P. What is the price elasticity of demand?
Correct A. -2
B. 2
C. -1
D. 1

Correct Answer: A

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Question 10
A firm's production function is given by the equation Q = 10L^0.5. What is the marginal product of labor?
Correct A. 5L^{-0.5}
B. 10L^{-0.5}
C. 5L^{0.5}
D. 10L^{0.5}

Correct Answer: A

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Question 11
A sole trader's business is registered under which of the following?
A. Partnership
B. Limited Liability Company
Correct C. Sole Trader
D. Cooperative Society

Correct Answer: C

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Question 12
A company's capital is divided into _______ shares.
A. 10
B. 100
C. 1000
Correct D. 10000

Correct Answer: D

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Question 13
A warehouse is a place where goods are stored for _______ purposes.
A. short-term
Correct B. long-term
C. temporary
D. permanent

Correct Answer: B

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Question 14
A company's financial statements are audited by _______.
A. Internal Auditor
Correct B. External Auditor
C. Management
D. Shareholders

Correct Answer: B

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Question 15
A bank's primary function is to _______ money.
A. create
B. destroy
C. borrow
Correct D. lend

Correct Answer: D

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Question 16
The concept of specialization in commerce refers to the process by which a firm or industry focuses on producing a specific product or service, thereby increasing its efficiency and productivity. Which of the following is a benefit of specialization in commerce?
A. Increased competition
B. Improved quality of products
Correct C. Reduced production costs
D. Increased market share

Correct Answer: C

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Question 17
A firm is considering entering a new market in a foreign country. Which of the following is a key consideration in the decision-making process?
A. The firm's current market share
B. The firm's production costs
Correct C. The firm's ability to adapt to local market conditions
D. The firm's financial resources

Correct Answer: C

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Question 18
A consumer is considering purchasing a product from a company that has a history of environmental irresponsibility. Which of the following is a consideration that the consumer should take into account?
A. The product's price
B. The product's quality
Correct C. The company's environmental record
D. The product's packaging

Correct Answer: C

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Question 19
A firm is considering purchasing liability insurance to protect itself against potential lawsuits. Which of the following is a benefit of liability insurance?
A. Reduced production costs
B. Improved employee morale
Correct C. Protection against financial losses
D. Increased market share

Correct Answer: C

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Question 20
A consumer is considering purchasing a product from a company that has a history of violating consumer protection laws. Which of the following is a consideration that the consumer should take into account?
A. The product's price
B. The product's quality
Correct C. The company's history of violating consumer protection laws
D. The product's packaging

Correct Answer: C

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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 the product?
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 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 produce 16 units of output, and the wage rate is ₦100 per unit of labor, and the rental rate of capital is ₦200 per unit of capital, how many units of labor should the firm hire?
A. 4 units
Correct B. 8 units
C. 12 units
D. 16 units

Correct Answer: B

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Question 23
A company is considering two different marketing strategies for its new product. Strategy A involves a high level of advertising and promotion, while Strategy B involves a low level of advertising and promotion. If the company expects to sell 1000 units of the product at a price of ₦500 per unit, and the cost of advertising and promotion for Strategy A is ₦200,000, and the cost of advertising and promotion for Strategy B is ₦50,000, which strategy should the company choose?
A. Strategy A
Correct B. Strategy B
C. Both strategies are equally profitable
D. Neither strategy is profitable

Correct Answer: B

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Question 24
A firm's cost function is given by C = 2L + 3K, where C is cost, L is labor, and K is capital. If the firm hires 4 units of labor and 6 units of capital, what is the total cost of production?
A. ₦40
B. ₦60
Correct C. ₦80
D. ₦100

Correct Answer: C

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Question 25
A company is considering two different production processes for its new product. Process A involves a high level of labor and a low level of capital, while Process B involves a low level of labor and a high level of capital. If the company expects to produce 1000 units of the product, and the cost of labor for Process A is ₦200,000, and the cost of capital for Process B is ₦300,000, which process should the company choose?
A. Process A
Correct B. Process B
C. Both processes are equally profitable
D. Neither process is profitable

Correct Answer: B

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