JAMB Economics questions: Theory of production

15 questions with answers and explanations. Tap an option to check yourself.

1. Question 1· Theory of production· JAMB

   The short run in production is a period in which

   • Aall factors are variable
   • Bat least one factor is fixed
   • Coutput is zero
   • Donly labour is fixed

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2. Question 2· Theory of production· JAMB

   Which of the following is primary production?

   • Abanking
   • Bmanufacturing
   • Cfarming
   • Dtransport

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3. Question 3· Theory of production· JAMB

   The law of diminishing returns operates when

   • Athe firm closes down
   • Ball factors are increased together
   • Cthe price of output falls
   • Dmore units of a variable factor are added to a fixed factor

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4. Question 4· Theory of production· JAMB

   Increasing returns to scale occur when

   • Aoutput falls as inputs rise
   • Boutput increases by a smaller proportion than inputs
   • Coutput increases by a greater proportion than inputs
   • Donly one factor is increased

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5. Question 5· Theory of production· JAMB

   Tertiary production includes

   • Abanking and transport services
   • Bfarming
   • Cmanufacturing
   • Dmining

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6. Question 6· Theory of production· JAMB

   Six workers produce a total of 120 units. Find the average product of labour.

   • A6 units
   • B120 units
   • C20 units
   • D720 units

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7. Question 7· Theory of production· JAMB

   Total product rises from 100 units to 130 units when a fifth worker is employed. The marginal product of the fifth worker is

   • A100 units
   • B26 units
   • C130 units
   • D30 units

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8. Question 8· Theory of production· JAMB

   Ten workers produce 200 units and eleven workers produce 215 units. The marginal product of the eleventh worker is

   • A19.5
   • B20
   • C215
   • D15

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9. Question 9· Theory of production· JAMB

   Division of labour is limited mainly by the

   • Asize of the market
   • Bnumber of workers
   • Camount of capital
   • Dlevel of taxation

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10. Question 10· Theory of production· JAMB

    A firm enjoys external economies of scale when

    • Ait buys in bulk
    • Bthe whole industry grows in an area
    • Cit uses large machines
    • Dit borrows cheaply as a big firm

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11. Question 11· Theory of production· JAMB

    Total product is 40 with 4 workers and 48 with 5 workers. The marginal product of the 5th worker is

    • A8
    • B9.6
    • C48
    • D10

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12. Question 12· Theory of production· JAMB

    Economies of scale that arise from the growth of the whole industry are

    • Ainternal economies
    • Bexternal economies
    • Cdiseconomies
    • Dfixed costs

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13. Question 13· Theory of production· JAMB

    An example of an internal economy of scale is

    • Abetter roads in the area
    • Bdiscounts from buying raw materials in bulk
    • Ca skilled labour pool in the region
    • Dgovernment infrastructure

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14. Question 14· Theory of production· JAMB

    Diseconomies of scale cause long-run average cost to

    • Arise as the firm grows too large
    • Bfall continuously
    • Cstay constant
    • Dbecome zero

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15. Question 15· Theory of production· JAMB

    Diseconomies of scale occur when

    • Aoutput rises
    • Baverage costs rise as a firm grows too large
    • Ccosts fall
    • Ddemand rises

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    Explanation and discussion