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

Practice these randomly selected questions to test your readiness.

Question 1
In a just-in-time inventory system, what is the primary goal of the reorder point?
A. To minimize inventory costs
B. To maximize inventory turnover
C. To ensure that stock levels are always at a minimum
Correct D. To maintain a safety stock level

Correct Answer: D

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Question 2
A company is considering the introduction of a new product line. The product has a high fixed cost of ₦500,000 and a variable cost of ₦100 per unit. If the selling price is ₦150 per unit, what is the break-even point in units?
A. 1000
Correct B. 2000
C. 5000
D. 10000

Correct Answer: B

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Question 3
A firm is considering two different modes of transportation for its goods: road and rail. The cost of transporting goods by road is ₦150 per kilometer, while the cost of transporting goods by rail is ₦120 per kilometer. If the firm needs to transport goods over a distance of 200 kilometers, what is the total cost of transportation by road?
Correct A. ₦30000
B. ₦30000
C. ₦30000
D. ₦30000

Correct Answer: A

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Question 4
A company is considering the introduction of a new product line. The product has a high fixed cost of ₦500,000 and a variable cost of ₦100 per unit. If the selling price is ₦150 per unit, what is the contribution margin per unit?
Correct A. ₦50
B. ₦50
C. ₦50
D. ₦50

Correct Answer: A

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Question 5
A firm is considering two different modes of transportation for its goods: road and rail. The cost of transporting goods by road is ₦150 per kilometer, while the cost of transporting goods by rail is ₦120 per kilometer. If the firm needs to transport goods over a distance of 200 kilometers, what is the total cost of transportation by rail?
Correct A. ₦24000
B. ₦24000
C. ₦24000
D. ₦24000

Correct Answer: A

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Question 6
In a perfectly competitive market, the supply curve is upward-sloping because of the law of increasing marginal opportunity costs. What is the relationship between marginal opportunity costs and the supply curve?
A. Marginal opportunity costs are constant, and the supply curve is horizontal.
Correct B. Marginal opportunity costs are increasing, and the supply curve is upward-sloping.
C. Marginal opportunity costs are decreasing, and the supply curve is downward-sloping.
D. Marginal opportunity costs are irrelevant to the supply curve.

Correct Answer: B

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Question 7
A company's sole trader is liable for all debts incurred by the business. What is the name of this type of liability?
Correct A. Unlimited liability
B. Limited liability
C. Joint and several liability
D. Personal liability

Correct Answer: A

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Question 8
A consumer protection law that prohibits unfair or deceptive acts or practices in commerce is known as a(n) ______ law.
A. Consumer protection law
B. Antitrust law
Correct C. Truth-in-advertising law
D. Deceptive business practices law

Correct Answer: C

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Question 9
A sole trader's business is not registered with the Corporate Affairs Commission (CAC). What is the name of this type of business?
A. Sole trader
B. Partnership
C. Limited liability company
Correct D. Unregistered business

Correct Answer: D

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Question 10
A company's articles of association are a document that outlines the rules and regulations of the company. What is the purpose of the articles of association?
A. To outline the company's objectives and goals
B. To describe the company's structure and management
Correct C. To outline the rules and regulations of the company
D. To provide information about the company's shareholders

Correct Answer: C

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Question 11
The demand for a product is given by the equation Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the price elasticity of demand is 0.5, what is the percentage change in quantity demanded when the price increases by 10%?
Correct A. 5%
B. 10%
C. 15%
D. 20%

Correct Answer: A

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Question 12
A company has a profit function given by P = 2x^2 - 3x + 5, where x is the number of units produced. If the company produces 5 units, what is the marginal revenue?
A. 10
B. 15
Correct C. 20
D. 25

Correct Answer: C

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Question 13
A firm has a production function given by Q = 2L^2 + 3K, where Q is the output, L is the labor and K is the capital. If the firm uses 4 units of labor and 5 units of capital, what is the marginal product of labor?
A. 10
B. 15
Correct C. 20
D. 25

Correct Answer: C

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Question 14
A company has a cost function given by C = 2x^2 + 3x + 5, where x is the number of units produced. If the company produces 5 units, what is the marginal cost?
A. 10
B. 15
Correct C. 20
D. 25

Correct Answer: C

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Question 15
A firm has a revenue function given by R = 2x^2 - 3x + 5, where x is the number of units sold. If the firm sells 5 units, what is the marginal revenue?
A. 10
B. 15
Correct C. 20
D. 25

Correct Answer: C

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Question 16
A company has a profit function given by P = 2x^2 - 3x + 5, where x is the number of units produced. If the company produces 5 units, what is the profit?
A. 10
B. 15
Correct C. 20
D. 25

Correct Answer: C

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Question 17
A firm has a production function given by Q = 2L^2 + 3K, where Q is the output, L is the labor and K is the capital. If the firm uses 4 units of labor and 5 units of capital, what is the output?
A. 10
B. 15
Correct C. 20
D. 25

Correct Answer: C

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Question 18
A company has a cost function given by C = 2x^2 + 3x + 5, where x is the number of units produced. If the company produces 5 units, what is the cost?
A. 10
B. 15
Correct C. 20
D. 25

Correct Answer: C

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Question 19
A firm has a revenue function given by R = 2x^2 - 3x + 5, where x is the number of units sold. If the firm sells 5 units, what is the revenue?
A. 10
B. 15
C. 20
D. 25

Correct Answer: VIEW ANSWER

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Question 20
In a perfectly competitive market, the supply curve is typically represented by a:
A. Horizontal Line
Correct B. U-Shaped Curve
C. Vertical Line
D. Inclined Line

Correct Answer: B

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Question 21
The concept of 'sunk cost' is most relevant in the context of:
A. Opportunity Cost
Correct B. Sunk Cost
C. Marginal Cost
D. Average Cost

Correct Answer: B

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Question 22
A firm's production function is given by Q = 2L^0.5 * K^0.5. If the firm's current output is 16 units and the wage rate is ₦100 per hour, what is the minimum amount of capital required to produce this output?
A. ₦2000
B. ₦2500
Correct C. ₦3000
D. ₦3500

Correct Answer: C

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Question 23
A company has two warehouses, A and B, with capacities of 1000 and 500 units, respectively. Warehouse A has a storage cost of ₦5 per unit, while Warehouse B has a storage cost of ₦10 per unit. If the company wants to store 1200 units, how much will it cost to store these units?
A. ₦6000
B. ₦6500
C. ₦7000
Correct D. ₦7500

Correct Answer: D

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Question 24
A firm's revenue function is given by R(x) = 2x^2 - 3x + 1. If the firm's marginal revenue function is MR(x) = 4x - 3, what is the value of x that maximizes revenue?
A. 1
B. 2
Correct C. 3
D. 4

Correct Answer: C

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Question 25
A company has a production function Q = 2L^0.5 * K^0.5. If the company wants to produce 16 units of output, and the wage rate is ₦100 per hour, what is the minimum amount of capital required to produce this output?
A. ₦2000
B. ₦2500
Correct C. ₦3000
D. ₦3500

Correct Answer: C

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