The Theory of Production - Jamb Economics Past Questions and Answers

Question 41:

• JAMB 1980

If a firm doubles its output and its cost increase by 60%, the firm is experiencing

A. Increase cost
B. Economies of scale
C. Decreasing returns
D. Decreasing cost
E. None of the above

Question 42:

• JAMB 1980

Division of labour is limited by the?

A. Available of raw materials
B. Size of the labour force
C. Size of a labour firm
D. Absolute size of the country's population
E. Per capital income and number of potential buyers

Question 43:

• JAMB 1980

One of the disadvantages of division of labour is that?

A. There is saving of time
B. It result in workers acquiring greater skill at their jobs
C. There is a greater risk of unemployment
D. It makes possible the use of machinery
E. It makes the worker less fatigued by his work

Question 44:

• JAMB 1981

Which of the following is NOT true about specialization or division of labour?

A. Specialization and exchange go hand in hand
B. Specialization implies that each person produces a surplus of one or a few items (e.g commodities) n which he is specialized
C. Division of labour needs not take account of the extent of the market
D. Division of labour results in increased productivity
E. Division of labour involves the danger of unemployment

Question 45:

• JAMB 1981

External economies are

A. The advantage accuring to a firm as a result of its expansion
B. The advantages accuring to one firm as a result of the existence of other firms in the same locality
C. Benefits derived by a firm as a result of its own individual policy
D. Reaped only by agricultural firms
E. Bound to increase the costs of production whatever the circumstances