FUTA Economics 2021/2022 Past Questions

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

Question 1

In a regulated market, price is determined by

A.auction
B.producers
C.government
D.consumers

Objective

Question 2

The purchasing power of the naira will fall when

A.workers are reterenched
B.the colour of the naira is changed
C.the government cuts all salaries and wages
D.there is inflation

Objective

Question 3

The difference between the Gross Domestic Product and the Gross National Product is the

A.Allowance for total depreciation
B.Total interest payments
C.Total tax and interest payments
D.Net income from abroad

Objective

Question 4

A rightward shift in the production possibility frontier may be due to

A.use of inferior inputs
B.inefficiency
C.improvement in production techniques and practices
D.changes in the product mix

Objective

Question 5

The law of diminishing returns often operates in the ...........

A.long run
B.short run
C.medium term
D.small scale production

Objective

Question 6

Which of the following is NOT a measure of central tendency?

A.mean
B.median
C.standard deviation
D.average

Objective

Question 7

Gains from trade depends on

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

Objective

Question 8

The multiplier is defined as

A.The ratio of the change in income to the change in investment
B.The change in investment divided by the change in income
C.1/(MPC)
D.1/(1-MPS)

Objective

Question 9

If a firm doubles its output and its costs increase by 60%, the firm is experiencing

A.increasing costs
B.economies of scale
C.decreasing returns
D.decreasing costs

Objective

Question 10

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 11

Industrialization in Nigeria can best be promoted through the development of

A.Textile manufacturing
B.Vegetable oil Processing
C.Iron and steel processing
D.Automatic manufacturing

Objective

Question 12

Deficit financing means

A.Deficits in financing a budget
B.Receiving supply of money in the economy
C.inadequate supply of money in the economy
D.Borrowing to finance a budget

Objective

Question 13

Which of the following could be used to measure efficiency of labour?

A.supply of labour
B.price level
C.input-output ratio
D.labour turnover

Objective

Question 14

The most commonly used of the measure of central tendency is

A.mode
B.median
C.mean
D.median and mode

Objective

Question 15

An economy where prices are determined by the market forces of demand and supply is

A.deregulated economy
B.command economy
C.centrally planned economy
D.regulated economy

Objective