POST UTME OSUSTECH 2020 Commerce | Objective

Are you preparing for POST UTME OSUSTECH 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.

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Question 1
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 product in this market?
Correct A. ₦1000, 100 units
B. ₦500, 200 units
C. ₦2000, 50 units
D. ₦1500, 75 units

Correct Answer: A

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Question 2
A company's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is labor and K is capital. If the company wants to produce 100 units of output, how much labor and capital should it hire?
Correct A. L = 25, K = 25
B. L = 50, K = 10
C. L = 10, K = 50
D. L = 5, K = 100

Correct Answer: A

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Question 3
A firm's cost function is given by C = 2L + 3K, where C is the total cost, L is labor and K is capital. If the firm hires 10 units of labor and 20 units of capital, what is the total cost?
A. ₦100
B. ₦200
Correct C. ₦300
D. ₦400

Correct Answer: C

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Question 4
A company's revenue function is given by R = 100Q - 2Q^2, where R is the total revenue and Q is the quantity sold. If the company sells 50 units of output, what is the total revenue?
A. ₦2500
Correct B. ₦3000
C. ₦3500
D. ₦4000

Correct Answer: B

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Question 5
A firm's profit function is given by π = R - C, where π is the profit, R is the revenue and C is the cost. If the firm's revenue is ₦5000 and its cost is ₦3000, what is the profit?
Correct A. ₦1000
B. ₦2000
C. ₦3000
D. ₦4000

Correct Answer: A

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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 key objective of advertising in this context?
A. To create awareness about the company's products
B. To build brand loyalty
C. To increase sales revenue
Correct D. To reduce production costs

Correct Answer: D

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Question 7
A firm's foreign trade involves exporting goods to a country with a different currency. Which of the following is a risk associated with this transaction?
A. Exchange rate risk
B. Country risk
C. Political risk
Correct D. All of the above

Correct Answer: D

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Question 8
A company's insurance policy covers against loss of goods in transit. Which of the following is a type of insurance policy that would provide this coverage?
A. Fire insurance
Correct B. Marine insurance
C. Liability insurance
D. Workers' compensation insurance

Correct Answer: B

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Question 9
A firm's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is a key objective of public relations in this context?
A. To create awareness about the company's products
B. To build brand loyalty
Correct C. To improve the company's image
D. To increase sales revenue

Correct Answer: C

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Question 10
A company's foreign trade involves importing goods from a country with a different currency. Which of the following is a risk associated with this transaction?
A. Exchange rate risk
B. Country risk
C. Political risk
Correct D. All of the above

Correct Answer: D

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Question 11
A company is considering the implementation of a just-in-time (JIT) inventory system. Which of the following is a key advantage of JIT?
Correct A. Reduced inventory costs
B. Improved product quality
C. Increased flexibility in production
D. Enhanced customer service

Correct Answer: A

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Question 12
A firm is considering the introduction of a new product line. Which of the following marketing strategies would be most appropriate for a new product launch?
A. Product differentiation
B. Market penetration
C. Market development
Correct D. Diversification

Correct Answer: D

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Question 13
A company is evaluating the feasibility of a new transportation mode. Which of the following factors would be most relevant in determining the viability of the new mode?
A. Fuel efficiency
B. Environmental impact
Correct C. Cost-effectiveness
D. Safety record

Correct Answer: C

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Question 14
A sole trader is considering the expansion of their business. Which of the following is a key advantage of incorporating as a limited company?
A. Increased tax liability
Correct B. Reduced liability for business debts
C. Improved access to capital
D. Simplified accounting requirements

Correct Answer: B

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Question 15
A firm is evaluating the effectiveness of its production process. Which of the following metrics would be most relevant in determining the efficiency of the process?
A. Throughput
B. Lead time
C. Cycle time
Correct D. Inventory turnover

Correct Answer: D

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Question 16
In a perfectly competitive market, the law of supply states that as the price of a commodity increases, the quantity supplied will
A. decrease
Correct B. increase
C. remain constant
D. shift to the left

Correct Answer: B

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Question 17
A firm's production function is given by Q = 2L^(1/2)K^(1/2). If the firm's current labor and capital inputs are L = 16 and K = 9, respectively, what is the firm's current output?
A. 24
B. 36
Correct C. 48
D. 60

Correct Answer: C

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Question 18
A consumer's budget constraint is given by the equation 2x + 3y = 12. If the consumer's current income is 12 and the price of good x is 2, what is the consumer's current consumption of good y?
A. 2
Correct B. 3
C. 4
D. 6

Correct Answer: B

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Question 19
A firm's demand function is given by Q = 100 - 2P. If the firm's current price is 20, what is the firm's current quantity demanded?
A. 60
B. 80
Correct C. 100
D. 120

Correct Answer: C

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Question 20
A consumer's indifference curve is given by the equation u(x, y) = 2x + 3y. If the consumer's current consumption of good x is 2 units and the consumer's current consumption of good y is 3 units, what is the consumer's current utility?
A. 13
Correct B. 15
C. 17
D. 19

Correct Answer: B

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Question 21
A company's marketing strategy involves a mix of product, price, promotion, and place. Which of the following is NOT a characteristic of a product?
A. Quality
B. Design
C. Packaging
Correct D. Warranty

Correct Answer: D

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Question 22
A firm's foreign trade involves the importation of goods from a foreign country. What is the term for the process of converting foreign currency into the domestic currency?
A. Exchange Rate
B. Tariff
C. Quota
Correct D. Remittance

Correct Answer: D

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Question 23
A company's risk management strategy involves identifying, assessing, and mitigating risks. Which of the following is a type of risk?
A. Financial Risk
B. Operational Risk
C. Strategic Risk
Correct D. All of the above

Correct Answer: D

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Question 24
A firm's marketing strategy involves creating a unique selling proposition (USP) to differentiate its product from competitors. What is the term for the process of creating a USP?
A. Positioning
B. Segmentation
C. Targeting
Correct D. Differentiation

Correct Answer: D

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Question 25
A company's risk management strategy involves identifying and mitigating risks. Which of the following is a type of risk that can be mitigated through diversification?
Correct A. Market Risk
B. Credit Risk
C. Liquidity Risk
D. Operational Risk

Correct Answer: A

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