POST UTME IMS U 2021 Commerce | Objective

Are you preparing for POST UTME IMS U exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2021 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 supply curve is upward-sloping because of the law of increasing
Correct A. Diminishing Returns
B. Increasing Opportunity Cost
C. Law of Supply
D. Marginal Revenue

Correct Answer: A

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Question 2
A company's cost of capital is the minimum rate of return that investors require in exchange for
Correct A. Investing in the company
B. Borrowing money from the bank
C. Issuing new shares
D. Retaining profits

Correct Answer: A

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Question 3
A firm's production function is given by Q = 2L^0.5K^0.25. If the firm wants to produce 16 units of output
A. L = 4, K = 16
Correct B. L = 16, K = 4
C. L = 8, K = 8
D. L = 32, K = 2

Correct Answer: B

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Question 4
A country's balance of payments accounts can be used to determine its
Correct A. Current account deficit
B. Capital account surplus
C. Trade deficit
D. Foreign exchange reserves

Correct Answer: A

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Question 5
A firm's cost of capital is the minimum rate of return that investors require in exchange for
Correct A. Investing in the company
B. Borrowing money from the bank
C. Issuing new shares
D. Retaining profits

Correct Answer: A

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Question 6
A sole trader's business is considered a separate legal entity from its owner. However, the owner's personal assets are still at risk in case of business debts. What is the name of this type of business risk?
Correct A. Unlimited Liability
B. Limited Liability
C. Joint Liability
D. Single Liability

Correct Answer: A

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Question 7
A company's articles of association state that the company's shares can be transferred by a simple majority vote of the shareholders. What type of share is this?
A. Preference Share
Correct B. Ordinary Share
C. Redeemable Share
D. Convertible Share

Correct Answer: B

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Question 8
A warehouse manager wants to store 500 boxes of goods in a warehouse with a capacity of 2000 boxes. The warehouse has a storage area of 1000 square meters. What is the maximum number of boxes that can be stored per square meter?
A. 2
Correct B. 3
C. 4
D. 5

Correct Answer: B

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Question 9
A company's marketing strategy involves creating a viral video that will be shared on social media. What type of marketing is this?
Correct A. Digital Marketing
B. Experiential Marketing
C. Event Marketing
D. Public Relations

Correct Answer: A

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Question 10
A consumer protection law requires that all products sold in a country must meet certain safety standards. What is the purpose of this law?
Correct A. To protect consumers from faulty products
B. To promote fair competition among businesses
C. To regulate the prices of products
D. To encourage innovation in product design

Correct Answer: A

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Question 11
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied will
A. increase
Correct B. decrease
C. remain constant
D. become irrelevant

Correct Answer: B

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Question 12
A firm's production function is given by Q = 2L^(1/2)K^(1/2). If the firm's labor and capital inputs are increased by 20% and 15% respectively, what is the percentage change in output?
A. 5%
B. 10%
Correct C. 15%
D. 20%

Correct Answer: C

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Question 13
A consumer has a budget constraint of 100 and a preference for two goods, A and B. The prices of A and B are 10 and 20 respectively. If the consumer spends all their budget on good A, what is the maximum amount they can spend on good B?
A. 20
Correct B. 30
C. 40
D. 50

Correct Answer: B

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Question 14
A firm's revenue function is given by R = 100Q - 2Q^2. If the firm produces 20 units of output, what is the marginal revenue?
A. 80
B. 90
Correct C. 100
D. 110

Correct Answer: C

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Question 15
A consumer has a utility function given by U = 2A + 3B. If the prices of A and B are 10 and 20 respectively, and the consumer spends all their budget on good A, what is the maximum amount they can spend on good B?
A. 20
Correct B. 30
C. 40
D. 50

Correct Answer: B

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Question 16
In a sole trading business, what is the primary advantage of using a sole proprietorship compared to a partnership?
A. Limited liability
B. Tax benefits
C. Easy formation
Correct D. Flexibility in decision-making

Correct Answer: D

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Question 17
A company has a share capital of ₦1,000,000, divided into 100,000 ordinary shares of ₦10 each. If the company issues 50,000 shares to the public, what is the amount of share capital raised?
A. ₦500,000
Correct B. ₦750,000
C. ₦1,000,000
D. ₦1,500,000

Correct Answer: B

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Question 18
A consumer purchases a product with a price of ₦5,000 and a 10% discount. If the consumer pays ₦4,500, what is the amount of the discount?
Correct A. ₦500
B. ₦1,000
C. ₦1,500
D. ₦2,000

Correct Answer: A

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Question 19
A company imports goods worth ₦1,000,000 and pays a 5% customs duty. If the company also pays a 2% sales tax on the imported goods, what is the total amount paid to the government?
A. ₦52,000
B. ₦54,000
C. ₦56,000
Correct D. ₦58,000

Correct Answer: D

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Question 20
A sole trader has a business income of ₦500,000 and a personal income of ₦200,000. If the sole trader pays a tax rate of 20% on the business income and 10% on the personal income, what is the total tax paid?
A. ₦80,000
B. ₦90,000
C. ₦100,000
Correct D. ₦110,000

Correct Answer: D

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Question 21
The concept of comparative advantage in international trade is based on the idea that countries should specialize in producing goods for which they have a lower opportunity cost compared to other countries. Which of the following is a correct example of comparative advantage?
Correct A. A country that can produce 100 units of wheat with the same amount of labor as 50 units of rice has a comparative advantage in producing wheat.
B. A country that can produce 100 units of wheat with the same amount of labor as 50 units of rice has a comparative disadvantage in producing wheat.
C. A country that can produce 100 units of wheat with the same amount of labor as 50 units of rice has a comparative advantage in producing rice.
D. A country that can produce 100 units of wheat with the same amount of labor as 50 units of rice has no comparative advantage in producing either wheat or rice.

Correct Answer: A

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Question 22
A firm's marketing mix consists of four main elements: product, price, promotion, and place. Which of the following is a correct example of a product element in a marketing mix?
Correct A. A product with a unique feature that differentiates it from competitors.
B. A product with a low price that is competitive with other products in the market.
C. A product that is promoted through social media advertising.
D. A product that is sold through a physical store.

Correct Answer: A

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Question 23
A warehouse management system (WMS) is a software application that helps manage the storage and movement of inventory within a warehouse. Which of the following is a key benefit of using a WMS?
Correct A. Improved inventory accuracy
B. Increased storage capacity
C. Reduced labor costs
D. Enhanced customer service

Correct Answer: A

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Question 24
A production process can be classified into three main types: job production, batch production, and mass production. Which of the following is a characteristic of mass production?
A. High labor intensity
Correct B. Low labor intensity
C. High capital intensity
D. Low capital intensity

Correct Answer: B

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Question 25
A transportation mode is a way of moving goods from one place to another. Which of the following is a characteristic of air transportation?
Correct A. High speed
B. Low speed
C. High cost
D. Low cost

Correct Answer: A

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