POST UTME RSU 2025 Commerce | Objective

Are you preparing for POST UTME RSU exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2025 Commerce (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
In a market with perfect competition, what is the relationship between the marginal revenue product of labor and the marginal factor cost of labor?
Correct A. MRP = MFC
B. MRP > MFC
C. MRP < MFC
D. MRP = -MFC

Correct Answer: A

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Question 2
A company is considering two different production processes for a new product. Process A has a fixed cost of ₦100,000 and a variable cost of ₦50 per unit. Process B has a fixed cost of ₦150,000 and a variable cost of ₦30 per unit. If the selling price of the product is ₦80 per unit, which process should the company use to maximize its profit?
Correct A. Process A
B. Process B
C. Both processes are equally profitable
D. Neither process is profitable

Correct Answer: A

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Question 3
A consumer has a budget of ₦10,000 and a preference for two goods: X and Y. The prices of the goods are ₦5,000 for X and ₦3,000 for Y. Using the indifference curve analysis, what is the optimal combination of X and Y that the consumer will choose?
Correct A. X = 2, Y = 1
B. X = 1, Y = 2
C. X = 1, Y = 1
D. X = 0, Y = 0

Correct Answer: A

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Question 4
A bank has a reserve requirement of 10% and a cash reserve of ₦100,000. If the bank's customers withdraw ₦500,000 in cash, what is the maximum amount of new loans that the bank can make?
A. ₦200,000
Correct B. ₦300,000
C. ₦400,000
D. ₦500,000

Correct Answer: B

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

Correct Answer: A

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Question 6
A company's production function is given by Q = 100L^0.5K^0.5, where Q is the quantity produced, L is the number of labor hours, and K is the capital stock. If the company increases its labor hours from 100 to 121 and its capital stock from 100 to 121, what is the percentage change in the quantity produced?
A. 10%
B. 20%
Correct C. 30%
D. 40%

Correct Answer: C

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Question 7
A firm's demand function is given by P = 100 - 2Q, where P is the price and Q is the quantity demanded. If the firm's marginal revenue is 50, what is the price elasticity of demand?
A. 0.5
Correct B. 1
C. 2
D. 3

Correct Answer: B

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Question 8
A company's cost function is given by C = 100 + 2Q, where C is the total cost and Q is the quantity produced. If the company produces 10 units, what is the total revenue?
A. 200
Correct B. 300
C. 400
D. 500

Correct Answer: B

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Question 9
A firm's supply function is given by Q = 100 + 2P, where Q is the quantity supplied and P is the price. If the price is 50, what is the quantity supplied?
A. 150
B. 200
Correct C. 250
D. 300

Correct Answer: C

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Question 10
A company's revenue function is given by R = 100Q - 2Q^2, where R is the total revenue and Q is the quantity produced. If the company produces 10 units, what is the marginal revenue?
A. 80
B. 90
Correct C. 100
D. 110

Correct Answer: C

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Question 11
A firm specializes in producing only one product, which is a type of electronic component. The production process involves several stages, including design, prototyping, testing, and packaging. If the firm's production process is characterized by a high degree of specialization, what is the likely outcome on its productivity?
Correct A. Increased productivity due to economies of scale
B. Decreased productivity due to lack of diversification
C. No change in productivity due to specialization
D. Increased productivity due to improved quality control

Correct Answer: A

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Question 12
A company uses a just-in-time (JIT) inventory system to manage its stock levels. If the company's suppliers are unreliable and often fail to deliver goods on time, what is the likely impact on the company's inventory levels?
A. Inventory levels will decrease due to reduced stockouts
Correct B. Inventory levels will increase due to increased stockouts
C. Inventory levels will remain unchanged due to JIT system
D. Inventory levels will fluctuate due to supplier unreliability

Correct Answer: B

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Question 13
A bank offers a credit card with a 20% annual interest rate and a 2% annual fee. If a customer has a balance of ₦10,000 and makes a payment of ₦5,000, what is the new balance after one year?
Correct A. ₦12,000
B. ₦11,000
C. ₦10,000
D. ₦9,000

Correct Answer: A

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Question 14
A company uses a marketing mix strategy to promote its new product. If the company allocates 30% of its budget to product development, 20% to pricing, 20% to promotion, and 30% to distribution, what is the total budget allocated to promotion?
A. ₦30,000
Correct B. ₦20,000
C. ₦10,000
D. ₦40,000

Correct Answer: B

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Question 15
A firm purchases an insurance policy that covers against loss of goods in transit. If the policy has a deductible of ₦5,000 and the firm suffers a loss of ₦20,000, what is the amount payable by the insurer?
Correct A. ₦15,000
B. ₦20,000
C. ₦10,000
D. ₦5,000

Correct Answer: A

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Question 16
The Central Bank of Nigeria (CBN) uses the monetary policy framework to regulate the money supply in the economy. Which of the following instruments is used to reduce the money supply?
A. Open Market Operations (OMO)
Correct B. Reserve Requirements
C. Discount Rate
D. Selective Credit Controls

Correct Answer: B

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Question 17
A consumer protection agency has the power to investigate complaints against businesses. Which of the following is a type of complaint that the agency can investigate?
Correct A. False Advertising
B. Unfair Competition
C. Product Liability
D. Price Fixing

Correct Answer: A

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Question 18
A firm produces two goods, A and B, using two inputs, labor and capital. The production function for good A is given by Q_A = 2L^0.5K^0.5, where Q_A is the quantity of good A produced, L is the amount of labor used, and K is the amount of capital used. The production function for good B is given by Q_B = 3L^0.7K^0.3. If the firm uses 100 units of labor and 200 units of capital, how many units of good A and good B will the firm produce?
Correct A. Q_A = 20, Q_B = 30
B. Q_A = 30, Q_B = 20
C. Q_A = 40, Q_B = 10
D. Q_A = 10, Q_B = 40

Correct Answer: A

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Question 19
A firm is considering two different production processes for producing a good. Process 1 requires an initial investment of ₦100,000 and has a fixed cost of ₦20,000 per unit produced. Process 2 requires an initial investment of ₦50,000 and has a fixed cost of ₦30,000 per unit produced. If the firm produces 100 units of the good, which process will result in lower total costs?
A. Process 1
Correct B. Process 2
C. Both processes will result in the same total costs
D. Neither process will result in lower total costs

Correct Answer: B

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Question 20
A firm is considering two different modes of transportation for delivering its goods. Mode 1 is by road, which costs ₦500 per kilometer, and Mode 2 is by air, which costs ₦1,000 per kilometer. If the firm needs to deliver 100 kilometers of goods, which mode of transportation will result in lower transportation costs?
Correct A. Mode 1
B. Mode 2
C. Both modes will result in the same transportation costs
D. Neither mode will result in lower transportation costs

Correct Answer: A

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Question 21
In a perfectly competitive market, the law of diminishing marginal returns is most likely to occur in the production of which of the following goods?
A. A luxury good
Correct B. A necessity good
C. A public good
D. A private good

Correct Answer: B

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Question 22
A company's financial statements show that its cost of goods sold is ₦120,000 and its gross profit is ₦80,000. What is the company's selling price?
A. ₦200,000
B. ₦220,000
Correct C. ₦240,000
D. ₦260,000

Correct Answer: C

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Question 23
A firm is considering two marketing strategies: one that involves a high level of advertising and another that involves a low level of advertising. Which of the following is a likely consequence of the high-advertising strategy?
Correct A. Increased market share
B. Decreased market share
C. No change in market share
D. Increased competition

Correct Answer: A

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Question 24
A company's inventory management system uses the first-in, first-out (FIFO) method. If the company has 100 units of a product with a cost of ₦50 each, and it sells 50 units, what is the total cost of the units sold?
A. ₦2,500
Correct B. ₦2,750
C. ₦3,000
D. ₦3,250

Correct Answer: B

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Question 25
A firm is considering two production methods: one that involves a high level of labor and another that involves a high level of capital. Which of the following is a likely consequence of the high-labor method?
A. Increased productivity
Correct B. Decreased productivity
C. No change in productivity
D. Increased labor costs

Correct Answer: B

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