Practice post utme unilorin commerce 2025 Past Questions

Question 1

In a perfectly competitive market, the law of diminishing marginal utility is most relevant to the production of which of the following goods?

A. Giffen goods

B. Normal goods

Correct C. Inferior goods

D. Veblen goods

Correct Answer: C

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Question 2

A company has a sole trader business structure. What is the primary advantage of this structure?

A. Limited liability

Correct B. Easy to set up

C. No need for formal meetings

D. No tax on profits

Correct Answer: B

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Question 3

A consumer has a budget of ₦10,000 and wants to buy a product that costs ₦5,000. The consumer also wants to save ₦2,000. What is the opportunity cost of buying the product?

A. ₦2,000

Correct B. ₦3,000

C. ₦4,000

D. ₦5,000

Correct Answer: B

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Question 4

A company has a warehouse with a capacity of 10,000 units. The company receives a shipment of 5,000 units. What is the new stock level?

A. 5,000

Correct B. 10,000

C. 15,000

D. 20,000

Correct Answer: B

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Question 5

A company uses the FIFO method of inventory valuation. If the company has a beginning inventory of 1,000 units at ₦10 each and purchases 2,000 units at ₦12 each, what is the cost of goods sold?

A. ₦20,000

B. ₦22,000

Correct C. ₦24,000

D. ₦26,000

Correct Answer: C

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Question 6

In a sole trade business, what is the primary advantage of using a cash book?

Correct A. Accurate recording of cash transactions

B. Easy identification of profit and loss

C. Improved cash flow management

D. Enhanced financial reporting

Correct Answer: A

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Question 7

A company has a warehouse with a capacity to store 10,000 units of goods. If the warehouse is currently 70% full, how many units of goods can still be stored?

Correct A. 7000

B. 8000

C. 9000

D. 10000

Correct Answer: A

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Question 8

A customer deposits ₦10,000 into a savings account with an interest rate of 5% per annum. How much interest will the customer earn in one year?

A. ₦500

Correct B. ₦500.50

C. ₦500.50

D. ₦500.50

Correct Answer: B

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Question 9

A company's financial statements show that it has a current ratio of 2:1. What does this indicate about the company's liquidity position?

Correct A. The company has a high level of liquidity

B. The company has a moderate level of liquidity

C. The company has a low level of liquidity

D. The company is insolvent

Correct Answer: A

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Question 10

A consumer protection law requires that all goods sold in a market must be accompanied by a warranty. What is the purpose of this warranty?

A. To protect the consumer from defective goods

B. To ensure that the goods meet certain quality standards

Correct C. To provide a refund or replacement for defective goods

D. To promote fair trade practices

Correct Answer: C

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Question 11

A firm's production function is given by Q = 2L^0.5H^0.5, where Q is the quantity produced, L is the number of labor hours, and H is the number of units of capital. If the firm wants to increase its production by 20% while keeping labor hours constant, by what percentage should it increase its capital?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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Question 12

A company's revenue is given by R = 100x - 2x^2, where x is the number of units sold. If the company wants to maximize its revenue, how many units should it sell?

A. 10

Correct B. 20

C. 30

D. 40

Correct Answer: B

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Question 13

A firm's cost function is given by C = 50 + 2L + 3H, where C is the total cost, L is the number of labor hours, and H is the number of units of capital. If the firm wants to minimize its cost while producing 100 units, how many labor hours and units of capital should it use?

Correct A. L = 20, H = 30

B. L = 30, H = 20

C. L = 40, H = 10

D. L = 10, H = 40

Correct Answer: A

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Question 14

A company's profit function is given by P = R - C, where P is the profit, R is the revenue, and C is the cost. If the company's revenue is given by R = 100x - 2x^2 and its cost is given by C = 50 + 2L + 3H, how many units should it sell to maximize its profit?

A. 10

Correct B. 20

C. 30

D. 40

Correct Answer: B

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Question 15

A firm's production function is given by Q = 2L^0.5H^0.5, where Q is the quantity produced, L is the number of labor hours, and H is the number of units of capital. If the firm wants to increase its production by 20% while keeping labor hours constant, by what percentage should it increase its capital?

A. 10%

Correct B. 20%

C. 30%

D. 40%

Correct Answer: B

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Question 16

A company's marketing strategy involves a mix of advertising, sales promotions, and public relations. Which of the following is NOT a characteristic of a successful marketing strategy?

A. Flexibility

B. Adaptability

C. Consistency

Correct D. Unpredictability

Correct Answer: D

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Question 17

A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to produce 16 units of output, and the price of labor is ₦100 per unit, while the price of capital is ₦200 per unit, what is the minimum cost of production?

A. ₦4000

Correct B. ₦8000

C. ₦12000

D. ₦16000

Correct Answer: B

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Question 18

A consumer protection agency is investigating a complaint about a company's warranty policy. The company claims that its warranty covers all defects in materials and workmanship for a period of one year from the date of purchase. However, the consumer alleges that the company has refused to honor the warranty. Which of the following is a possible reason for the company's refusal?

A. The consumer failed to register the product within the specified time frame

Correct B. The product was used for commercial purposes

C. The product was damaged due to misuse

D. The company has a policy of not honoring warranties for products purchased online

Correct Answer: B

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Question 19

A warehouse manager is responsible for storing and retrieving inventory for a retail store. The warehouse has a capacity of 1000 units, and the manager wants to maximize storage efficiency. Which of the following storage systems would be most suitable?

A. First-In-First-Out (FIFO)

B. Last-In-First-Out (LIFO)

Correct C. FIFO with a twist

D. Just-In-Time (JIT)

Correct Answer: C

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Question 20

A firm's production function is given by Q = 3L^0.7K^0.3. If the firm wants to produce 27 units of output, and the price of labor is ₦150 per unit, while the price of capital is ₦300 per unit, what is the minimum cost of production?

A. ₦13500

B. ₦27000

Correct C. ₦40500

D. ₦54000

Correct Answer: C

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Question 21

In a perfectly competitive market, the law of diminishing marginal utility is most closely related to which of the following?

A. Law of Supply

B. Law of Demand

Correct C. Law of Diminishing Marginal Utility

D. Law of Increasing Opportunity Cost

Correct Answer: C

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Question 22

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

Correct B. 36

C. 48

D. 60

Correct Answer: B

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Question 23

A company's stock is trading at a price of ₦125. If the company pays an annual dividend of ₦3.75 per share, what is the dividend yield?

A. 3%

Correct B. 4%

C. 5%

D. 6%

Correct Answer: B

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Question 24

A firm's revenue function is given by R = 2Q^2. If the firm's current output is Q = 4, what is the firm's current revenue?

A. 32

Correct B. 64

C. 128

D. 256

Correct Answer: B

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Question 25

A company's cost function is given by C = 2L + 3K. If the company's current labor and capital inputs are L = 8 and K = 6, respectively, what is the company's current cost?

A. 26

B. 30

Correct C. 34

D. 38

Correct Answer: C

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POST UTME UNILORIN 2025 Commerce | Objective

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