Economics Live Exam Questions- FUTA Post UTME

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Put your understanding of Economics to the test with this interactive practice session designed for FUTA Post UTME candidates.

Welcome to the FUTA Post UTME Economics Live Exam Questions.

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One of the most outstanding disadvantages of cooperative societies as a business organization is that

It is poorly financed

Membership interest is centered on sharing of essential commodities

True spirit of cooperation is marred by delegated authority

Members show much interest

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

Quality only

Price only

Quantity only

Price and quantity

A demand which is positively related to price is true of

Ostentatious goods

Giffen goods

Normal goods

If inflation is anticipated to continue,

lenders will demand higher interest rates

people will want to hold more money

the growth of full employment output will be accelerated

A tax on a commodity whose supply is perfectly inelastic is

Shifted completely on the consumer

Divided in the ratio 60: 40 between the consumer and the supplier

ivided half-and-half between the producer and the consumer

Completely borne by the supplier

In any economy, what is used as money is determined by

Government acceptance of an inconvertible paper standard

Government acceptance of a commodity standard

Laws and customs

Its use as a store of value

The higher the dependency ratio, the

Lower the birth rate

Smaller the proportion of the active labor force relative to the inactive

Larger the proportion of the employed relative to the unemployed

Smaller the number of non-working age groups relative to the active labor force

A limited liability company is usually owned by

Two or more partners

An individual

A government

Shareholders

A modern corporation is owned by

creditors

ordinary shareholders

debenture holders

preference shareholders

10.

Use the following production and cost data of a profit-maximizing firm to answer

Unit of total input	Total output	TFC	TVC
0	0	100	0
1	3	100	100
2	8	100	124
3	16	100	172
4	20	100	190
5	22	100	200

Calculate the marginal physical product of the last unit of input

1 out of 5

11.

A production possibility curve shows

The rate of inflation

How much of the resources of society are used to produce a particular commodity

The various combinations of two commodities that can be produced.

12.

Which of the following best describes the concept of opportunity cost?

A special bargain or sale at below market price

Goods that are not produced in order to produce more of another good.

A cost that constantly decreases

13.

Choice in economic life is necessitated by

The need to construct scale of preference

Unlimited wants

The opportunity cost of consumption

Scarcity of economic resources

14.

In economics analysis, a statement is said to be normalize if it

Can be tested scientifically

Relates to value judgment

Is contradictory

15.

The degree of specialization is limited by the

Disadvantage of standardization

Availability of specialized skills and machinery

Extent of the market

Marginal cost exceeding marginal revenue

16.

Which of these statements describes a mixed economy?

The government and the private sector interact in solving the basic economic problems

The government produces and distributes all goods and services

Society answers the question “what”, “why” and “for whom” questions only through the market system

The invisible hand solves the basic economic problems

17.

Which of the financial institutions is charged with the formulation of monetary policies in Nigeria?

The Central Bank of Nigeria

The Abuja commodity exchange

The Lagos state stock exchange

The Nigeria deposit insurance corporation

18.

The primary function of non-banking financial institutions is to

Mobilize saving for investment

Grant loans to banks

Manage investment portfolios for government

Receive deposits from banks

19.

In drawing an individual's demand curve for a commodity, which of the following is NOT kept constant?

Price of complementary goods

Price of the commodity under

Individual money income

Price for substitutes

20.

Given that beef and fish are substitutes, a rise in the price of beef relative to that of fish will

Induce greater demand for fish

Induce greater demand for beef

Induce lower demand for fish

Equate demand for beef and fish

2 out of 5

21.

Production in Economics can be defined as the

Transformation of raw materials and services in order to make maximum profits

Production of goods and services for consumption

Transformation of raw material and services in order to provide ultimate utility

Totality of producing, buying and consuming

22.

The main function of price mechanism is to

Ensure consumer sovereignty

Limit consumer demand

Enable producers make profits

23.

Gresham's law in economics shows that

Bad money drives good money out of circulation

The price level varies directly with the quantity of money

Gold must be available to maintain the value of paper money

Good money drives bad money out of circulation

24.

Given that the cash reserve ratio is 10 percent, what is the maximum amount of money that the banking system can create from an initial cash deposit of ₦1000.00?

₦9,000.00

₦100.00

₦10,000.00

₦1,000.00

25.

The most important economic characteristic differentiating commercial banks from other financial institutions is their

Role in financing balance of payments deficits

Ability to create and destroy money

Status as an intermediary between savers and borrowers

26.

Given that Y= C + I and C = bY where b = 0.8, what is the multiplier?

27.

The difference between payments and receipts for visible trade is called

Balance of payment

Bilateral trade

Current balance

Balance of trade

28.

A free trade area emerges when

The UNCTAD is in force

A group of countries decide to remove restriction on imports from one another

Traders from one part of the country can move freely to other parts

Customs regulations are harmonized among countries

29.

Population density refers to

The total area divided by the total population

Densely populated urban centre

The total population divided by the total area

30.

An aspect of taxation that involves normative economics is the

Effect on incentive to work

Tax burden

Fairness of the tax

3 out of 5

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Economics Live Exam Questions- FUTA Post UTME

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