Jamb Economics 1994 Past Questions and Answers

Question 11:

• JAMB 1994

When the Total Product (TP) is at maximum point, the Marginal Product (MP) and the Average Product (AP) respectively are?

A. Zero and decreasing
B. Decreasing and zero
C. Negative and decreasing
D. Both at their maximum

Question 12:

• JAMB 1994

In the long run, all production factors are?

A. Fixed
B. Semi fixed
C. Variable
D. Semi-variable

Question 13:

• JAMB 1994

A company's expenditure on raw materials is regarded as?

A. Explicit cost
B. Implicit cost
C. Prime cost
D. Average cost

Question 14:

• JAMB 1994

The basic relationship between the cost of production, and the market price of any commodity in the short run is that the market price?

A. Always reflects the cost of labour
B. Reflects the variable, but not the fixed cost of production
C. Does not rise above variable costs
D. Is determined by the cost of production and the current rate of inflation

Question 15:

• JAMB 1994

A firm determines its profit when it studies its?

A. Marginal Cost
B. Average Cost
C. Total Cost
D. Average Cost relative to price in the market