FUTA Economics 2007/2008 Past Questions

Practice each question, then open it to see the full details.

Given that Y= C + I and C = bY where b = 0.08 by where b -- 0.08, what is the multiplier?

A.5
B.10
C.4
D.2

The difference between payments and receipts for visible trade is called

A.bilateral trade
B.current balance
C.balance of payment
D.balance of trade

A free trade area emerges when

A.Traders from one part of the country can move freely to other parts
B.Customs regulations are harmonized among countries
C.A group of Countries decide to remove restriction on imports from one another
D.The UNCTAD is in force

Which of the following is an example of invisible item on balance of payments account?

A.shipping and aviation
B.exports and imports
C.Merchandise
D.bullion

Population density refers to

A.Densely populated urban centre
B.The total area di by the total population
C.Densely populated rural areas
D.The total population divided by the total area.

An aspect of taxation that involves normative economics is the

A.Tax rate
B.Effect on incentive to work
C.Fairness of the tax
D.Tax burden

A tax that increases at a higher percentage as income increases is called

A.A proportional tax
B.A regressive tax
C.A progressive tax
D.Anincorne tax

One of the assumptions of ordinary utility in consumer behavior is that

A.Consumer are irrational
B.Marginal utility rises continuously
C.Utility is measureable
D.Utility can be ranked.

In the normal channel of distribution breaking of bulk is performed by the

A.Producer
B.Wholesaler
C.Retailer
D.Consumer.

One of the most outstanding disadvantage of cooperative societies as business organization is that

A.True spirit of cooperation is marred by delegated authority
B.Members show much interest
C.It is poorly financed
D.Membership interest is centered on sharing of essential commodities.

A disadvantage of joint-stock company is

A.Unlimited liability
B.Limited liability
C.Continuity
D.Loss of controlling interest

A characteristics of a debenture is that

A.Its yield is based on profits
B.Its yield is a fixed rate of interest
C.It has a redemption date
D.There is a voting When interest is paid give rise to economic problems? situations

Which of the following statements is correct?

A.Unlimited human wants
B.Wants of varying importance
C.Limited means available satisfying wants
D.Means used in different ways.

The main objective of the economic community of West African state is to

A.Establish a West African development bank
B.Create a West African army
C.Introduce a common currency for the sub-region
D.Promote the free movement of persons, goods, and services within the sub-region

In international trade, shipping and other freight charges are treated as

A.Invisible items
B.Unilateral transfers
C.Capital transactions
D.Autonomous capital transactions.