Economics Practice Test – Theory of Production (Questions with Answers and Explanations)

Determine the value of W (JAMB 2015)

From the table above, find the value of X. (JAMB 2015)

The law of variable proportions is applicable only ______ (JAMB 2011)

A. to large-scale enterprises
B. to small-scale enterprises
C. in the short-run period
D. in the long-run period.

A firm will experience diseconomies of scale when ______ (JAMB 2011)

A. there is shortage in labour supply
B. the size of market is small
C. there is an increase in the price of raw materials.
D. there is difficulties in coordinating production

Firms embark on vertical integration in order to ______ (JAMB 2014)

A. enjoy economies of large-scale production
B. take over markets, formally controlled by other firms
C. prevent other firms from entering the market
D. reduce advertisement and marketing cost