The Theory of Production - Jamb Economics Past Questions and Answers

Question 71:

• JAMB 1988

The law of Diminishing Returns begins to operate when?

A. Total product begins to rise
B. Total product begins to fall
C. Marginal product begins to fall
D. Marginal product begins to rise

Question 72:

• JAMB 1988

The assumption of profit maximization implies profit?

A. Is the most important consideration of the firm
B. Is the sole consideration of the firm
C. Assumes an insatiable propotion in the instinct of management
D. Is made in other to break-even

Question 73:

• JAMB 1988

The additional revenue obtained by using one more unit of a factor is called?

A. Average product
B. Marginal product
C. Diminishing returns
D. Marginal revenue product

Question 74:

• JAMB 1989

A shift in the production possibility frontier could result from?

A. Unemployment
B. Changes in the combination of goods produced
C. Inflation
D. Changes in production techniques

Question 75:

• JAMB 1989

Efficiency in production involves?

A. Reducing the size of the workforce
B. Producing a given output with the lowest cost combination of factors of production
C. Adoption of capital-intensive technology
D. Increasing the quantity of the fixed factor of production