The Theory of Production - Jamb Economics Past Questions and Answers

Question 116:

• JAMB 2003

For a firm, value added can be defined as the difference between the

A. Input prices and product prices
B. Value of its output and inputs purchased from other firms
C. Value of its output and the cost of production
D. Total revenue and total cost

Question 117:

• JAMB 2003

Use the production possibility curve of a country represented in the diagram above to this questions.An improvement in technology will enable the country to produce at

A. V
B. W
C. X
D. Z

Question 118:

• JAMB 2003

If the country is currently producing at point Y, it can increase production of producer goods by moving to the point

A. V
B. W
C. X
D. Z

Question 119:

• JAMB 2004

A necessary condition for specialization in an economy is the existence of

A. A regulated market
B. A competitive market
C. A medium of exchange
D. Adequate capital

Question 120:

• JAMB 2005

Long-run production is called

A. Diminsihing returns to scale
B. Returns to scale
C. External economies of scale
D. Economies of scale