POST UTME NOUN 2020 Commerce | Objective

Are you preparing for POST UTME NOUN exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2020 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 and the demand curve is downward-sloping. What is the effect of an increase in the price of a commodity on the quantity supplied?
A. The quantity supplied increases
Correct B. The quantity supplied decreases
C. The quantity supplied remains unchanged
D. The quantity supplied increases and then decreases

Correct Answer: B

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Question 2
A firm's production function is given by Q = 2L^(1/2)K^(1/2), where Q is the quantity produced, L is the labor input, and K is the capital input. If the price of labor increases by 20%, and the price of capital remains constant, what is the effect on the firm's output?
A. The output increases by 10%
Correct B. The output decreases by 10%
C. The output remains unchanged
D. The output increases by 20%

Correct Answer: B

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Question 3
A consumer has a budget of ₦1000 and faces the following prices: Q1 = ₦200, Q2 = ₦300, and Q3 = ₦400. If the consumer spends all their budget on Q1 and Q2, what is the maximum amount they can spend on Q3?
A. ₦100
Correct B. ₦200
C. ₦300
D. ₦400

Correct Answer: B

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Question 4
A firm's cost function is given by C = 2L + 3K, where C is the total cost, L is the labor input, and K is the capital input. If the price of labor is ₦100 and the price of capital is ₦200, what is the total cost of producing 100 units of output?
A. ₦5000
B. ₦6000
Correct C. ₦7000
D. ₦8000

Correct Answer: C

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Question 5
A consumer has a utility function given by U = 2Q1 + 3Q2, where Q1 and Q2 are the quantities of two goods consumed. If the prices of Q1 and Q2 are ₦200 and ₦300 respectively, and the consumer's income is ₦1000, what is the maximum amount they can spend on Q2?
A. ₦300
B. ₦400
Correct C. ₦500
D. ₦600

Correct Answer: C

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Question 6
A firm specializes in producing only one product. This specialization allows the firm to _______ its production costs.
Correct A. reduce
B. increase
C. minimize
D. maximize

Correct Answer: A

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Question 7
A company uses the following cost function: C(x) = 2x^2 + 5x + 10. If the company produces 10 units, what is the total cost?
A. ₦150
B. ₦200
Correct C. ₦250
D. ₦300

Correct Answer: C

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Question 8
A bank offers a 5% interest rate on a savings account. If a customer deposits ₦10,000, how much will the customer have after one year?
Correct A. ₦10,525
B. ₦10,500
C. ₦10,475
D. ₦10,450

Correct Answer: A

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Question 9
A company has a market share of 30% in the industry. If the company wants to increase its market share by 5%, what is the new market share?
A. 35%
Correct B. 40%
C. 45%
D. 50%

Correct Answer: B

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Question 10
A firm uses the following production function: Q = 2L^2 + 5L + 10. If the firm wants to produce 20 units, what is the total labor required?
A. 5 workers
B. 10 workers
Correct C. 15 workers
D. 20 workers

Correct Answer: C

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Question 11
In a perfectly competitive market, the supply curve is a straight line that intersects the demand curve at the equilibrium price and quantity. What is the name of this equilibrium price?
Correct A. Equilibrium Price
B. Market Price
C. Supply Price
D. Demand Price

Correct Answer: A

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Question 12
What is the primary function of the Federal Road Safety Corps (FRSC) in Nigeria?
A. To regulate traffic flow
Correct B. To enforce traffic laws
C. To provide emergency services
D. To maintain road infrastructure

Correct Answer: B

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Question 13
A company's assets are valued at ₦1.5 million, liabilities are ₦800,000, and equity is ₦700,000. What is the company's debt-to-equity ratio?
A. 1:1
B. 1:2
Correct C. 2:1
D. 3:1

Correct Answer: C

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Question 14
A consumer purchases a product for ₦2,000 and sells it for ₦3,000. What is the profit made on the sale?
A. ₦1,000
Correct B. ₦1,500
C. ₦2,000
D. ₦3,000

Correct Answer: B

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Question 15
A company has a 10% dividend yield on its shares. If the current market price of the shares is ₦100, what is the expected dividend payment per share?
A. ₦10
Correct B. ₦11
C. ₦12
D. ₦13

Correct Answer: B

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Question 16
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. 60%
B. 70%
Correct C. 80%
D. 90%

Correct Answer: C

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Question 17
A firm has two factories, A and B. Factory A produces 60% of the firm's total output, while factory B produces 40%. If the total output of the firm is 10,000 units, how many units does factory A produce?
Correct A. 4,000
B. 6,000
C. 8,000
D. 10,000

Correct Answer: A

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Question 18
A company has a policy of paying its employees a 10% bonus on their annual salary. If an employee's annual salary is ₦120,000, how much is the bonus?
Correct A. ₦12,000
B. ₦15,000
C. ₦18,000
D. ₦20,000

Correct Answer: A

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Question 19
A firm has a warehouse with a capacity of 5,000 units. The warehouse is currently 80% full. If the company receives a new shipment of 2,000 units, what is the new percentage of the warehouse that is full?
A. 70%
B. 80%
Correct C. 90%
D. 95%

Correct Answer: C

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Question 20
A company has a policy of paying its employees a 15% bonus on their annual salary. If an employee's annual salary is ₦150,000, how much is the bonus?
Correct A. ₦22,500
B. ₦25,000
C. ₦27,500
D. ₦30,000

Correct Answer: A

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Question 21
A firm has two factories, A and B. Factory A produces 50% of the firm's total output, while factory B produces 50%. If the total output of the firm is 10,000 units, how many units does factory A produce?
Correct A. 5,000
B. 6,000
C. 7,000
D. 8,000

Correct Answer: A

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Question 22
A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 60% full. If the company receives a new shipment of 3,000 units, what is the new percentage of the warehouse that is full?
A. 65%
B. 70%
Correct C. 75%
D. 80%

Correct Answer: C

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Question 23
A firm has a warehouse with a capacity of 8,000 units. The warehouse is currently 70% full. If the company receives a new shipment of 2,000 units, what is the new percentage of the warehouse that is full?
A. 75%
Correct B. 80%
C. 85%
D. 90%

Correct Answer: B

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Question 24
A company has a policy of paying its employees a 12% bonus on their annual salary. If an employee's annual salary is ₦180,000, how much is the bonus?
Correct A. ₦21,600
B. ₦22,800
C. ₦24,000
D. ₦25,200

Correct Answer: A

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