JAMB and WAEC Economics questions: Theory of production

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

1. Question 21· 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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   Explanation and discussion

2. Question 22· 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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3. Question 23· 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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   Explanation and discussion

4. Question 24· 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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5. Question 25· 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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   Explanation and discussion

6. Question 26· 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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7. Question 27· 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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8. Question 28· Theory of production· WAEC

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

   • A9
   • B11
   • C33
   • D99

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9. Question 29· 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