The Theory of Production - Jamb Economics Past Questions and Answers

Question 96:

• JAMB 1994

The diagram represents a production function. At which of the points does diminishing returns set in

A. I
B. J
C. K
D. L

Question 97:

• JAMB 1995

The advantages which firms obtain directly from expanding their operations are referred to as?

A. Internal economies of scale
B. External economies of scale
C. Economics of localization
D. Economies of resources allocation

Question 98:

• JAMB 1995

In this table, the marginal product of the 2nd worker and the average product of the 5th worker respectively are

A. 23 and 20
B. 22 and 19
C. 14 and 19
D. 11 and 20

Question 99:

• JAMB 1997

The suggestion that peasants in Africa have backward-bending supply curves of output implies that their response to an increase in the price of their crops will be to?

A. Increase their output
B. Decrease their output
C. Keep their output constant
D. Hoard their output

Question 100:

• JAMB 1997

A firm is said to have benefited from external economies in production if it has realized?

A. A more efficient management of resources
B. A better combination of factors of production
C. Reduced resources costs due to operation of other firms
D. A higher profit level due to increased sales