FUTA Economics 2010/2011 Past Questions

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

The types of business finance that entitles The holder to fixed rate of dividend is

A.Preferred stock
B.Common stock
C.Debenture
D.Bank loan

A debenture share entitles its holder to

A.participate in the annual general meeting of the company
B.Share in the dividend declared
C.Receive a fixed interest on sums invested
D.Have a representative on the board of directors

Tariffs on imports are meant to

A.Prevent a country from becoming a dumping ground for foreign goods
B.Discourage exports
C.Encourage exports
D.Increase the level dependency

If a country has a balance of payment crisis, which of the following measures can best bring about an improvement in the short run?

A.Large scale importation on foreign goods
B.Investments in capital market abroad
C.Large scale export of locally made goods
D.Repayment of debt to her creditors.

The terms of trade of a country Is defined as

A.Index of import price / index of export price x 100
B.Index of exportation / index of importation x 100
C.Index of visible imports / index of importation x 100
D.Index of export prices / index of import prices x 100

One of the gains by member states of Economic Community of West African States is

A.Mono culture dependency
B.Trade creation
C.Trade inversion
D.Economic interdependency

Deflation is a persistent fall in the general price level and is usually caused by

A.Reduction in total demand
B.An increase in government spending
C.An increase in the money supply
D.An increase in aggregate demand

Price can be defined as

A.A rate of exchange
B.A medium of exchange
C.The cost of a product
D.The standard of accounting

Money market differs from capital market in that it

A.Uses interest rate while capital market does not
B.Is limited in scope while capital market is not
C.Deals with money only while capital market deals with capital as well
D.Deals with short term loan while capital market deals with long term funds

The ultimate objective of economics is to

A.Make the best use of scarce resources
B.Decide under what circumstances in the economy
C.Organize production at the lowest cost
D.Make effort to understand how the economy works

What to produce in any society is determined by the

A.Competition producer
B.Competition among different consumers
C.Supply and demand in the factor market
D.Expenditure of the different commodities

One of the fundamental between a capitalist and a socialist economy is that while

A.The former is characterized by complete government ownership of resources, the latter is characterized by complete private ownership
B.In the former, prices act as signals in the allocation of resources, it is the central authority that perform this function in the latter
C.Taxes are levied in a capitalist economy. there is no taxation in a socialist economy
D.Income and wealth are equally distributed in the socialist economy, this is not so in a capitalist economy

If at #50 per kg, 1000kg of yam were purchased and at #30 per kg, 1500kg were purchased, the resultant point elasticity of demand is

A.2
B.1.25
C.0.00125
D.1000

If as the price of a commodity rises, the quantity demanded of the commodity remains the same, then the demand for the commodity is

A.Infinitely elastic
B.static
C.perfectly inelastic
D.Externally determined

Economic development may be defined as economic growth

A.In a given country
B.Over a long period
C.and improved health facilities
D.And improved distribution of wealth.