WAEC Economics questions: Theory of production

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

1. Question 1· Theory of production· WAEC

   A farmer keeps adding workers to the same plot of land and each extra worker adds less output. This illustrates

   • Athe law of diminishing returns
   • Beconomies of scale
   • Cthe law of demand
   • Ddivision of labour

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2. Question 2· Theory of production· WAEC

   Division of labour leads to

   • Aself-sufficiency
   • Blower efficiency
   • Cthe end of exchange
   • Dhigher output through specialisation

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3. Question 3· Theory of production· WAEC

   In economics, the process of production is said to end only when goods

   • Areach the final consumer
   • Bare manufactured
   • Care stored in a warehouse
   • Dare advertised

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4. Question 4· Theory of production· WAEC

   Diminishing returns set in when a producer

   • Aincreases all factors in the same proportion
   • Bsells off its fixed assets
   • Cstops production entirely
   • Dkeeps adding units of a variable factor to a fixed factor

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5. Question 5· Theory of production· WAEC

   Internal economies of scale include

   • Agovernment subsidies to the industry
   • Bbetter roads in the area
   • Cskilled labour in the region
   • Dbulk buying discounts

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6. Question 6· Theory of production· WAEC

   Average product is

   • Atotal cost divided by output
   • Bchange in total product
   • Ctotal product divided by units of the variable factor
   • Dprice times output

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7. Question 7· Theory of production· WAEC

   Division of labour means

   • Abreaking production into stages with workers specialising
   • Bworkers doing every task
   • Cstopping production
   • Ddividing profits

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8. Question 8· Theory of production· WAEC

   The law of diminishing returns applies when

   • Aoutput is zero
   • Ball factors are increased
   • Cmore of a variable factor is added to a fixed factor
   • Ddemand falls

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9. Question 9· Theory of production· WAEC

   Total output with 1, 2 and 3 workers is 10, 24 and 33 units. Find the marginal product of the third worker.

   • A33
   • B11
   • C9
   • D14

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10. Question 10· Theory of production· WAEC

    Division of labour is limited by the

    • Arate of interest
    • Bnumber of managers
    • Csize of the market
    • Dlevel of taxation

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11. Question 11· Theory of production· WAEC

    When marginal product is zero, total product is

    • Afalling
    • Bat its minimum
    • Cat its maximum
    • Dzero

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12. Question 12· Theory of production· WAEC

    Which of these activities is part of production in economics?

    • Astoring yams for one's own use only
    • Beating the yams
    • Cthrowing away the yams
    • Dtransporting yams from the farm to the market

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13. Question 13· Theory of production· WAEC

    A farmer keeps adding workers to the same one-hectare plot until each extra worker adds less to output than the one before. This shows the law of

    • Ademand
    • Bdiminishing returns
    • Ccomparative advantage
    • Dincreasing returns to scale

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14. Question 14· Theory of production· WAEC

    Three workers produce 33 units. What is the average product?

    • A9
    • B11
    • C33
    • D99

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