POST UTME UNN 2023 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 2023 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
In a perfectly competitive market, what is the relationship between the supply curve and the marginal cost curve?
A. The supply curve is identical to the marginal cost curve.
B. The supply curve is above the marginal cost curve.
Correct C. The supply curve is below the marginal cost curve.
D. The supply curve is unrelated to the marginal cost curve.

Correct Answer: C

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Question 2
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 4 and K = 9, what is the marginal product of labor?
A. 1.5
Correct B. 2
C. 3
D. 4

Correct Answer: B

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Question 3
A firm is considering two marketing strategies: Strategy A involves a 10% increase in advertising expenditure, while Strategy B involves a 5% increase in sales force size. If the firm's current advertising expenditure is ₦100,000 and its current sales force size is 10 people, what is the total cost of Strategy A?
A. ₦110,000
Correct B. ₦110,500
C. ₦111,000
D. ₦111,500

Correct Answer: B

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Question 4
A bank's balance sheet is given by Assets = ₦100,000, Liabilities = ₦50,000, and Equity = ₦50,000. If the bank's current cash balance is ₦20,000, what is the bank's liquidity ratio?
A. 0.2
Correct B. 0.3
C. 0.4
D. 0.5

Correct Answer: B

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Question 5
A firm's inventory management system is given by the following diagram:
Correct A. The firm's inventory level is increasing.
B. The firm's inventory level is decreasing.
C. The firm's inventory level is constant.
D. The firm's inventory level is unrelated to the production line.

Correct Answer: A

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Question 6
A company is considering two different warehouse layouts for its new distribution center. Layout A has a rectangular shape with dimensions 100m x 50m, while Layout B has a square shape with side length 75m. If the company wants to maximize storage capacity while minimizing the perimeter, which layout should it choose?
Correct A. Layout A
B. Layout B
C. Both layouts have equal storage capacity
D. Neither layout is suitable for the company's needs

Correct Answer: A

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Question 7
A firm is considering two different modes of transportation for its goods: road and rail. The road transportation costs ₦120 per kilometer, while the rail transportation costs ₦100 per kilometer. If the firm needs to transport 500 kilometers of goods, what is the total cost of transportation using the road mode?
A. ₦60,000
Correct B. ₦80,000
C. ₦100,000
D. ₦120,000

Correct Answer: B

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Question 8
A company is planning to expand its operations into a new market. The company has identified two potential markets: Market A and Market B. Market A has a population of 1 million people, while Market B has a population of 500,000 people. If the company wants to maximize its sales revenue, which market should it choose?
Correct A. Market A
B. Market B
C. Both markets have equal potential
D. Neither market is suitable for the company's needs

Correct Answer: A

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Question 9
A firm is considering two different advertising strategies: print and digital. The print advertising costs ₦50,000 per month, while the digital advertising costs ₦30,000 per month. If the firm wants to maximize its advertising reach, which strategy should it choose?
A. Print advertising
Correct B. Digital advertising
C. Both strategies have equal reach
D. Neither strategy is suitable for the firm's needs

Correct Answer: B

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Question 10
A company is considering two different business units: sole trade and company. The sole trade business unit has a higher profit margin, but the company business unit has a lower risk. If the company wants to maximize its profits while minimizing its risk, which business unit should it choose?
A. Sole trade
Correct B. Company
C. Both business units have equal profit margins
D. Neither business unit is suitable for the company's needs

Correct Answer: B

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Question 11
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?
A. ₦100, 100 units
Correct B. ₦120, 80 units
C. ₦150, 60 units
D. ₦180, 40 units

Correct Answer: B

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Question 12
A company has a sole trader business structure. What are the characteristics of this business structure?
A. Limited liability, separate legal entity
Correct B. Unlimited liability, sole owner
C. Partnership, shared ownership
D. Company, separate legal entity

Correct Answer: B

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Question 13
A bank offers a 5-year fixed deposit account with an interest rate of 10% per annum. If a customer deposits ₦100,000, how much will the customer receive at the end of the 5-year period?
Correct A. ₦162,887.43
B. ₦165,000
C. ₦167,500
D. ₦170,000

Correct Answer: A

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Question 14
A company has a business interruption insurance policy that covers 80% of the company's revenue loss due to a fire. If the company's revenue loss is ₦500,000, how much will the insurance company pay?
A. ₦400,000
Correct B. ₦450,000
C. ₦480,000
D. ₦500,000

Correct Answer: B

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Question 15
A company is considering launching a new product in a new market. What is the primary goal of market research in this scenario?
Correct A. To identify potential customers
B. To determine the optimal price
C. To assess the level of competition
D. To evaluate the product's features

Correct Answer: A

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Question 16
A company is considering two different modes of transportation for its products: road and rail. The cost of transporting a unit of product by road is ₦150, while the cost of transporting a unit of product by rail is ₦120. If the company expects to transport 1000 units of product, what is the total cost of transportation if 60% of the units are transported by road and 40% by rail?
A. ₦180,000
Correct B. ₦200,000
C. ₦220,000
D. ₦240,000

Correct Answer: B

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Question 17
A sole trader, Mr. A, has a business that generates an average monthly profit of ₦50,000. If Mr. A wants to expand his business and increase his monthly profit by 20%, what is the new average monthly profit?
A. ₦60,000
B. ₦65,000
Correct C. ₦70,000
D. ₦75,000

Correct Answer: C

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Question 18
A company has a foreign trade agreement with a country that allows it to import goods worth ₦1,000,000. If the company wants to import goods worth ₦1,500,000, what is the additional amount it needs to pay in customs duty?
A. ₦250,000
B. ₦300,000
Correct C. ₦350,000
D. ₦400,000

Correct Answer: C

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Question 19
A bank has a reserve requirement of 10% for its customers. If a customer deposits ₦100,000 into their account, how much will the bank reserve and how much will be available for withdrawal?
Correct A. ₦10,000 reserved, ₦90,000 available
B. ₦15,000 reserved, ₦85,000 available
C. ₦20,000 reserved, ₦80,000 available
D. ₦25,000 reserved, ₦75,000 available

Correct Answer: A

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Question 20
A company has a policy of paying its employees a 10% bonus on their annual salary. If an employee earns ₦500,000 per year, what is the bonus amount?
A. ₦50,000
B. ₦55,000
Correct C. ₦60,000
D. ₦65,000

Correct Answer: C

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Question 21
A firm specializes in producing a single product. This is an example of _______.
A. Division of Labour
B. Economies of Scale
C. Product Differentiation
Correct D. Production Specialization

Correct Answer: D

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Question 22
A company's financial statements show that it has a net income of ₦1,500,000 and a total equity of ₦3,000,000. What is the company's return on equity (ROE)?
A. 50%
Correct B. 33.33%
C. 40%
D. 25%

Correct Answer: B

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Question 23
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm wants to increase its output by 20%, what is the required increase in labor and capital?
A. 10% increase in labor and 10% increase in capital
Correct B. 20% increase in labor and 20% increase in capital
C. 15% increase in labor and 15% increase in capital
D. 25% increase in labor and 25% increase in capital

Correct Answer: B

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Question 24
A company has a 10% dividend yield and a current stock price of ₦100. What is the expected dividend payment per share?
Correct A. ₦10
B. ₦5
C. ₦15
D. ₦20

Correct Answer: A

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Question 25
A firm's cost function is given by C = 2L + 3K. If the firm wants to minimize its costs, what is the optimal level of labor and capital?
A. L = 10, K = 20
B. L = 20, K = 10
Correct C. L = 15, K = 15
D. L = 5, K = 5

Correct Answer: C

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