The Theory of Production - Jamb Economics Past Questions and Answers

Question 16:

• JAMB 2017

Given that the total production of Bandako farmers with one worker is 10kg. When the workers increased to 2, 3, and 4, the total production increases to 20, 36 and 60kg respectively.
Calculate the average product (AP) of the 4th unit of labour.

A. 20
B. 13
C. 15
D. 10

Question 17:

• JAMB 2017

The bowed shape of the Production possibilities curve illustrates _________

A. That production is inefficient
B. That demand is relatively inelastic
C. That production is unattainable
D. The law of increasing marginal cost

Question 18:

• JAMB 2016

One of the factors limiting the effectiveness of division of labour in the production process is the

A. Prevailing wage rate
B. Level of technology
C. Unemployment rate
D. Population size

Question 19:

• JAMB 2016

The additional cost incurred by producing an additional unit of output is known as

A. Fixed cost
B. Total cost
C. Average cost
D. Marginal cost

Question 20:

• JAMB 2016

If additional unit of a variable factor input causes a fall in the marginal product, this implies that

A. Total product starts declining
B. Average product has become zero
C. Diminishing returns has set in
D. Increasing returns is operating