The Theory of Production - Jamb Economics Past Questions and Answers

Question 46:

• JAMB 1982

A firm whose cost of production decrease as it continues to increase its output is said to be enjoying?

A. Profit maximization
B. Large-scale production
C. A wind fall
D. Government subsidies
E. Economies of scale

Question 47:

• JAMB 1983

Production possibilities(alternatives)
P Q R S T
Units of shelter 5 4 3 2 0
Units of food 0 5 9 12 15
Based on the above production possibilities table, the real cost of a unit of food when alternative R is selected is?

A. One unit of shelter
B. Three units of shelter
C. One third of a unit of shelter
D. Six units of shelter
E. Two units of shelter

Question 48:

• JAMB 1983

If successive units of labour are added to a piece of land while capital and technology remain constant, a point will be reached in the level of production when each added unit of labour will added less to the output than previous units of the labour. This concept is known as?

A. The productivity of labour
B. The law of diminishing marginal utility
C. The law diminishing returns
D. The concept of factor intensity
E. Labour intensive production

Question 49:

• JAMB 1983

Division of labour has many advantages . Not withstanding, it is greatly limited by?

A. Monotony of work
B. Decline of craftmanship
C. Risk of unemployment
D. Extent of market demand
E. Boredom

Question 50:

• JAMB 1984

Division of labour is limited by?

A. The size of market
B. The productivity of capital
C. Cost of production
D. The factors of production
E. Government policy