FUTA Economics 2008/2009 Past Questions

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

A situation in which a commodity sold abroad below its cost of production in the home country is known as

A.Dumping
B.Counter-trade
C.Bilateral trade
D.Trade liberalization

The borrowing rights of a member country of the international monetary fund are determined by

A.The seriousness of the country's economic problem
B.Its balance of payment position
C.Its quota to the fund
D.The size of its gold reserve

An increase in money supply, things being equal, will

A.Lower interest rates
B.Reduce income
C.Ensure trade balance
D.Increase money demand.

Two principal ways by which banks can lend money to their customers are through

A.Loans and overdrafts
B.Loans and discounting bills
C.Overdrafts and cheques
D.Over draft and treasury bills

An increase in the discount rate is an indication of a central bank's intension to pursue

A.An expansionary monetary policy
B.A disciplined money policy
C.A dynamic monetary policies
D.A contradictory monetary policy

A firm is in its optimum size when

A.It produces the greatest output
B.It has a motive to increase output
C.Marginal cost equals marginal revenue
D.Marginal cost is less than marginal revenue

A firm achieves least cost in production by substituting factors until

A.Their factor prices are equal
B.Their marginal physical product are each equal to their factor prices
C.Their marginal physical product are each zero
D.The ratio of their marginal physical product equals the ratio of their prices.

Which of these is the real cost of satisfying any want in the sense that has to be foregone?

A.Variable cost
B.Opportunity cost
C.Total cost
D.Prime cost.

Scarcity in economics means that

A.Human wants are limitless
B.The economy can scarcely produce anything
C.Resources are limited in relation to want
D.The economy has very few resources

Economics is often described as a

A.It uses scientific methods to explain observed phenomena and predict future events
B.It makes use of field work
C.It makes use of controlled experimentation
D.Laboratory experiments that are performed

Which of the following is an important function of prices in a market economy?

A.Ensuring that resources are used in the most efficient manner
B.Ensuring an equitable distribution of goods and services
C.Ensuring that all industries are perfectly competitive in the long run
D.Equating level of purchases with the level of needs

In the history of economic thought, the concept of division of labor is usually associated with

A.David Ricardo
B.JM Keynes
C.Adam Smith
D.Karl Marx

In the operation of market forces, the market is in equilibrium at the point where

A.Demand and supply curves intersect in more than one point provided the market is cleared
B.The excess in the market can be conveniently stored
C.Excess demand is negative
D.Demand and supply curves incorrect.

A shift in demand when the supply curve for a commodity curve is vertical will lead to change in the

A.Price only
B.Quantity only
C.Quality only
D.Price and quantity.

The difference between personal income and personal disposable income is

A.personal income tax
B.investment income
C.personal savings
D.consumption expenditure