FUTA Economics 2014/2015 Past Questions

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

Question 1

The Malthusian theory of population growth is often said to be

A.oversimplified
B.ambiguous
C.optimistic
D.pessimistic

Objective

Question 2

Labor productivity is defined as

A.Output per man-hour
B.average output
C.The minimum number of hours worked
D.Total level of output

Objective

Question 3

Efficiency of labor is enhanced by

A.involvement in own family affairs
B.War against indiscipline
C.Mechanization processes
D.Improved working condition and training.

Objective

Question 4

Devaluation helps in checking adverse balance of payments if the

A.Demand for imports is elastic
B.Demand for imports is inelastic
C.Supply of exports is elastic
D.Demand for exports is inelastic

Objective

Question 5

Gains from trade depends on

A.Comparative advantage
B.Absolute advantage
C.Distribution cost advantage
D.Absolute cost advantage.

Objective

Question 6

Favorable terms of trade is important to a country because it facilitates

A.Economic prosperity for importers and exporters
B.Export of hard currency by the government
C.Economic prosperity for the country
D.Absolute cost advantage.

Objective

Question 7

The tax which takes an increasing fractional of income as income goes down is called

A.Conditional
B.Regressive
C.Progressive
D.Proportional

Objective

Question 8

A greater burden of the taxes on essential goods is borne by the

A.Higher income group
B.Newly recruited workers
C.Lower income workers
D.Contract work

Objective

Question 9

The effect of an increase in the personal income tax is to

A.Raise the absolute price level
B.DistOrt the economy
C.Reduce unemployment
D.Reduce the disposable income.

Objective

Question 10

The most important advantage of cooperative societies is

A.Their high degree of democracy
B.The increase in the cost of marketing
C.That members are encouraged to save money
D.The possibility of raising loans for the members.

Objective

Question 11

In a public company, shares are

A.Sold to one person only
B.Distributed freely
C.Advertised to members of the public for subscription
D.Disposed off by the chief executive

Objective

Question 12

Which of the following is a characteristic of the private limited liability company?

A.Its shares can be sold to the public
B.The number of share holders ranges from 50 to 100
C.All share holders have equal powers and responsibilities
D.The number of shareholders range from 2 to 50

Objective

Question 13

An important function for the retailer is to

A.Grant credit to the wholesaler
B.Break bulk and sell products in small units
C.Reduce cost of distribution
D.Generate demand for product through advertisement

Objective

Question 14

The main handicap of sole proprietorship is

A.Limited liability
B.Lack of technical know how
C.Low profit margin
D.Inadequate capital

Objective

Question 15

The type of business organization mostly used for producing public goods in Nigeria is

A.Sole proprietorships
B.Limited liability companies
C.Cooperative societies
D.Statutory corporations

Objective