The Theory of Production - Jamb Economics Past Questions and Answers

Question 56:

• JAMB 1985

The act of combining factor inputs in order to obtain specific output is known as

A. Factor procurement
B. Manufacturing
C. Investment
D. Industrialization
E. Production

Question 57:

• JAMB 1985

The table illustrates the law of diminishing returns on a farm. Which pair of the following answers is appropriate for the missing information in the spaces market X and Y?

A. X = 20, Y = 6
B. X = 38, Y =9
C. X = 46, Y = 9
D. X = 46, Y = 14
E. X = 10, Y = 10

Question 58:

• JAMB 1986

The degree of specialization is limited by the

A. Avalibility of specialized skills and machinery
B. Marginal cost exceeding marginal revenue
C. Extent of the market
D. Disadvantage of standardization

Question 59:

• JAMB 1986

Production in Economics can be defined as the

A. Totality of producing, buying and consuming
B. Transformation of raw materials and services in order to provide ultimate utility
C. Transformation of raw materials and services in order to make maximum profit
D. Production of goods and services for consumption

Question 60:

• JAMB 1986

A producer sustains a loss in the short run if

A. Marfinal revenue is less than price
B. Price is less than average cost
C. Average variable cost is less than average cost
D. Marginal cost is less than marginal revenue