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

In the process of production, total output is at maximum when ______ (JAMB 2011)

A. MP > 0   B. AP = 0   C. AP > 0    D. MP = 0

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

Division of labour requires that the tasks ¡n a production line can be performed _______ (JAMB 2014)

A. by unskilled labourers
B. by specialists
C. in stages
D. by all workers

Study the diagram below:

From the diagram above, the optimal point of production is ______ (JAMB 2011)

A. T   B. U   C. S   D. R

Study the figure below;

A combination of factors responsible for a shift from D_oD_o to D₁D₁ are ______ (JAMB 2014)

A. consumers taste and change in price.
B. consumers income and change in technology
C. price of the commodity and weather conditions
D. consumers income and population size