FUTA Economics 2022/2023 Past Questions

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

One disadvantage of sole proprietorship is its

A.Limited liability
B.Higher profits
C.high sense of ownership
D.Low credit rating
E.low failure value

The monetary system that requires double coincidence of wants is known as

A.the gold standard
B.The Barter practice
C.The commodity system
D.the gold exchange standard
E.the cheque system

The marginal theory of distribution makes an assertion that the price of any factor depends upon its marginal

A.Utility
B.Productivity
C.Raw of substitution
D.Revenue
E.Proceeds

For a consumer of two commodities equilibrium is attained when

A.MU₁= P¹ and MU₂ = P₂
B.MU₁/P₁ = MU₁P₁
C.MU₁/P₂= MU₂P₁
D.MU₁/P₁ X MU₂/P₂

The law of diminishing marginal utility states that

A.The total utility of a commodity increases initially and decreases later
B.The marginal utility of a commodity diminishes as the consumer takes more of it
C.The marginal utility may be positive or negative
D.Utility is a cardinal

One of the following is not a property of an indifference curve

A.Negative slope
B.non-intersection of difference curve
C.Higher indifference curve equals higher utility
D.decreasing rate of technical substitution

Assuming the total population is 100 million. the civilian labor force is 50 million, and 47 million workers are employed, the unemployment rate is:

A.3%
B.6%
C.7%
D.5.3%

Which of the following is used by a rational consumer when making economic decisions?

A.Total utility
B.marginal utility
C.marginal production
D.total production

Disequilibrium in the balance of payments means

A.imports of the country exceeding its export
B.workers
C.deficit in the trade balance
E.government does not engage land for other crops

External economies are

A.the advantages accruing to firm as a result of its expansion
B.the advantages accruing to one firm as a result of the existence of other firms in the same locality
C.benefits derived by a firm as a result of its own external economies policy
D.economies reaped only by firms that are externally focused
E.bound to increase the cost of production

From an ECONOMICS point of view, an activity does not have cost when

A.someone else pays for it
B.the returns are greater than costs
C.the choice involves giving up nothing
D.government pays for it
E.it is paid for from gift

Opportunity cost is a term which describes

A.initial cost of setting up a business venture
B.a study of the ways man devices to satisfy his unlimited wants from limited resources
C.cost of one product in terms of forgone production of others
D.the mandatory equivalent of the utility of a commodity
E.cost related to an optimum level of production

Which of the following is used to describe a payment representing a surplus in excess of transfer earnings?

A.interest rates
B.opportunity costs
C.economic rent
D.indirect costs
E.wages

A perfectly competitive firm produces the most profitable output where its

A.marginal revenue equals average cost
B.price equals average cost
C.price equals marginal cost
D.marginal cost equals marginal revenue
E.average revenue equals average cost

Advertising is the main technique used for effecting in a monopolistic competition

A.market segmentation
B.product differentiation
C.price
D.profit
E.supply