POST UTME UNN 2022 Commerce | Objective

Are you preparing for POST UTME UNN 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 perfectly competitive market, the supply curve is typically represented by the marginal cost curve. However, in the presence of externalities, the supply curve may shift due to the marginal social cost (MSC) or marginal social benefit (MSB). Which of the following best describes the relationship between MSC and MSB?
A. MSC > MSB
Correct B. MSC < MSB
C. MSC = MSB
D. MSC and MSB are unrelated

Correct Answer: B

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Question 2
A company is considering expanding its operations to a new market. The company's marketing manager has identified two potential target markets: Market A and Market B. Market A has a larger population, but Market B has a higher disposable income. Which of the following marketing strategies would be most effective for targeting Market B?
A. Product differentiation
B. Segmentation
C. Target marketing
Correct D. Positioning

Correct Answer: D

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Question 3
A consumer protection agency has received a complaint from a consumer who purchased a product online. The product was described as 'new' but was actually a refurbished item. The agency is considering taking action against the seller. Which of the following laws would be most relevant to this situation?
Correct A. Consumer Protection Act
B. Trade Practices Act
C. Fair Trading Act
D. Product Safety Act

Correct Answer: A

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Question 4
A company is considering using a transportation mode that is more environmentally friendly. The company's logistics manager has identified two potential options: Option A and Option B. Option A has a higher cost per unit but is more environmentally friendly, while Option B has a lower cost per unit but is less environmentally friendly. Which of the following transportation modes would be most effective for Option A?
Correct A. Rail
B. Truck
C. Ship
D. Air

Correct Answer: A

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Question 5
A company is considering expanding its operations to a new country. The company's international business manager has identified two potential markets: Market X and Market Y. Market X has a larger market size, but Market Y has a more favorable business environment. Which of the following international business strategies would be most effective for targeting Market Y?
A. Exporting
B. Licensing
C. Franchising
Correct D. Joint venture

Correct Answer: D

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Question 6
A company is considering two marketing strategies: Strategy A involves a high initial investment in advertising, while Strategy B involves a lower initial investment but higher ongoing costs. Which strategy is more likely to result in higher profits in the long run?
Correct A. Strategy A
B. Strategy B
C. Both strategies are equally likely to result in higher profits
D. Neither strategy is likely to result in higher profits

Correct Answer: A

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Question 7
A warehouse is using a first-in, first-out (FIFO) inventory system. If the warehouse has 100 units of Item A and 50 units of Item B, and the cost of Item A is ₦100 per unit and the cost of Item B is ₦200 per unit, what is the total value of the inventory?
A. ₦15,000
Correct B. ₦20,000
C. ₦25,000
D. ₦30,000

Correct Answer: B

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Question 8
A company is considering exporting its products to a foreign market. Which of the following is a key factor to consider when determining whether to export?
A. The company's production costs
B. The company's market share in the domestic market
Correct C. The company's ability to adapt to foreign market conditions
D. The company's financial resources

Correct Answer: C

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Question 9
A company is considering producing a new product. Which of the following is a key consideration when deciding whether to produce the product?
A. The company's production costs
B. The company's market share in the domestic market
Correct C. The company's ability to adapt to changing market conditions
D. The company's financial resources

Correct Answer: C

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Question 10
A bank is considering lending money to a customer. Which of the following is a key factor to consider when determining whether to lend the money?
A. The customer's credit history
B. The customer's income
Correct C. The customer's debt-to-income ratio
D. The customer's employment status

Correct Answer: C

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Question 11
A company is considering two marketing strategies: a high-cost, high-reward approach and a low-cost, low-reward approach. The high-cost approach has a 20% chance of success, resulting in a profit of ₦1,000,000, and a 80% chance of failure, resulting in a loss of ₦500,000. The low-cost approach has a 50% chance of success, resulting in a profit of ₦200,000, and a 50% chance of failure, resulting in a loss of ₦100,000. Which approach should the company choose?
A. High-cost approach
Correct B. Low-cost approach
C. Both approaches have the same expected value
D. Neither approach is suitable

Correct Answer: B

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Question 12
A firm is considering two production methods: a traditional method and a modern method. The traditional method has a fixed cost of ₦500,000 and a variable cost of ₦100 per unit. The modern method has a fixed cost of ₦1,000,000 and a variable cost of ₦50 per unit. If the firm produces 10,000 units, which method should it choose?
Correct A. Traditional method
B. Modern method
C. Both methods have the same total cost
D. Neither method is suitable

Correct Answer: A

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Question 13
A bank offers a 10% interest rate on deposits. If a customer deposits ₦100,000 for 5 years, how much interest will the customer earn?
A. ₦50,000
B. ₦60,000
Correct C. ₦70,000
D. ₦80,000

Correct Answer: C

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Question 14
A company has a warehouse with a capacity of 10,000 units. The company receives an order for 8,000 units and has 2,000 units already in stock. What is the new stock level?
Correct A. 6,000 units
B. 8,000 units
C. 10,000 units
D. 12,000 units

Correct Answer: A

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Question 15
A firm is considering two advertising strategies: a print ad and a digital ad. The print ad has a cost of ₦50,000 and a reach of 10,000 people. The digital ad has a cost of ₦20,000 and a reach of 50,000 people. Which ad should the firm choose?
A. Print ad
Correct B. Digital ad
C. Both ads have the same cost-effectiveness
D. Neither ad is suitable

Correct Answer: B

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Question 16
Under the Consumer Protection Act, what is the primary responsibility of the Consumer Protection Council?
A. To investigate consumer complaints and provide compensation to affected consumers
Correct B. To regulate the activities of businesses and ensure compliance with consumer protection laws
C. To educate consumers on their rights and responsibilities under consumer protection laws
D. To provide legal representation to consumers in court

Correct Answer: B

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Question 17
A bank offers a credit card with an annual interest rate of 20% and a minimum payment of 2% of the outstanding balance. If the outstanding balance is ₦50,000, what is the minimum payment due?
A. ₦1,000
B. ₦1,500
Correct C. ₦2,000
D. ₦2,500

Correct Answer: C

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Question 18
A company uses a just-in-time inventory system to manage its supply chain. What is the primary benefit of this system?
A. Reduced inventory costs
Correct B. Improved supply chain efficiency
C. Increased customer satisfaction
D. Enhanced product quality

Correct Answer: B

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Question 19
A marketing manager wants to increase sales by 15% within the next quarter. What is the minimum amount of additional advertising expenditure required to achieve this goal?
A. ₦100,000
Correct B. ₦150,000
C. ₦200,000
D. ₦250,000

Correct Answer: B

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Question 20
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?
Correct A. ₦10
B. ₦12
C. ₦15
D. ₦20

Correct Answer: A

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Question 21
A firm's marketing strategy involves a mix of product, price, promotion, and place. Which of the following is NOT a key element of the marketing mix?
A. Product
B. Price
C. Place
Correct D. Research

Correct Answer: D

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Question 22
A bank's cash reserve ratio is 20%. If the bank has a total deposit of ₦10,000,000, how much cash must it reserve?
Correct A. ₦2,000,000
B. ₦1,500,000
C. ₦2,500,000
D. ₦1,000,000

Correct Answer: A

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Question 23
A firm's break-even point is ₦50,000. If the selling price is ₦100,000 and the fixed costs are ₦20,000, what is the contribution margin?
Correct A. ₦30,000
B. ₦20,000
C. ₦40,000
D. ₦60,000

Correct Answer: A

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Question 24
A firm's marketing strategy involves a mix of product, price, promotion, and place. Which of the following is a key element of the marketing mix?
Correct A. Product
B. Price
C. Place
D. Research

Correct Answer: A

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Question 25
A bank's cash reserve ratio is 20%. If the bank has a total deposit of ₦10,000,000, how much cash must it reserve?
Correct A. ₦2,000,000
B. ₦1,500,000
C. ₦2,500,000
D. ₦1,000,000

Correct Answer: A

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