The Theory of Production - Jamb Economics Past Questions and Answers

Question 101:

• JAMB 1997

The current stage of the economy is depicted in curve 1. Point P suggests that the economy is

A. Reaching full employment but not full prodduction
B. Attaining full production but not full employment
C. Under capitalized
D. Attaining both full employment and full production

Question 102:

• JAMB 1997

The movement of curve I to ll suggests

A. An improvement in capital goods technology but not in consumer goods technology
B. A movement from unemployment to full employment
C. That the output for the society has declined
D. A gain in consumer goods technique and not in capital goods technique

Question 103:

• JAMB 1998

Specialization often improves economic performance because it?

A. Permits exploitation of economies of scale
B. Incorporates external economies
C. Is based on the law of variable proportions
D. Allocates resources according to absolute advantage

Question 104:

• JAMB 1998

Which of the following statements best describes the relationship between average product and marginal products?

A. Marginal product and average product curves rise and falls together
B. Marginal product equals average product at the minimum point of the latter
C. Average product curve will rise as product is greater than average product
D. Marginal product at the maximum point of the fomer

Question 105:

• JAMB 1998

When a firm is reaping economies of large-scale production, it experiences a fall in its?

A. Long-run marginal cost
B. Long-run average cost
C. Long-run total cost
D. Short-run marginal cost