JAMB and WAEC Economics questions: Theory of production

29 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· 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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3. Question 3· Theory of production· JAMB

   Which of the following is primary production?

   • Abanking
   • Bmanufacturing
   • Cfarming
   • Dtransport

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4. Question 4· 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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5. Question 5· 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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6. Question 6· 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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7. Question 7· Theory of production· JAMB

   Tertiary production includes

   • Abanking and transport services
   • Bfarming
   • Cmanufacturing
   • Dmining

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8. Question 8· 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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9. Question 9· 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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10. Question 10· 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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11. Question 11· 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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12. Question 12· 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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13. Question 13· 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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14. Question 14· 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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15. Question 15· 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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16. Question 16· 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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17. Question 17· 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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18. Question 18· 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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19. Question 19· 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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20. Question 20· Theory of production· WAEC

    When marginal product is zero, total product is

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

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