The Theory of Production - Jamb Economics Past Questions and Answers

Question 86:

• JAMB 1990

Which of the following is the major function of the wholesaler?

A. Bulk breaking
B. Provision of useful information to th manufacturer on products
C. Provision of after-sales services to consumers
D. Provision of warehouse facility

Question 87:

• JAMB 1991

If units of a variable factor are increasingly added to a fixed factor and the marginal physical product keeps increasing, production is said to be taking place under conditions of?

A. Increasing returns to the variable factor
B. Increasing returns to scale
C. Constant returns to variable factor
D. External economies of scale

Question 88:

• JAMB 1991

If a society is operating on the production possibility curve, this implies that the resources are?

A. Fully and efficiently utilized
B. Fully but inefficiently utilized
C. Efficiently but not fully utilized
D. Abundant

Question 89:

• JAMB 1991

Resources are efficiently allocated when production takes place at that output where price equals?

A. Marginal revenue
B. Average variable cost
C. Marginal cost
D. Toal cost

Question 90:

• JAMB 1992

Firms are often set up close to each other in order to take advantage of?

A. Supply or skilled labour
B. Agglomeration economies
C. Internal economies of scale
D. External economies of scale