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

Hello and Welcome to Economics Practice Test - Theory of Production

  1. You are to attempt 5 random objectives questions ONLY.
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Calculate the value of V. (JAMB 2015)

A. 30   B. 35  C. 20   D. 25


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


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.


If a firm doubles all inputs in the long run and the output is less than doubled, this results in _____ (JAMB 2012)

A. diminishing returns
B. constant returns to scale
C. increasing returns to scale
D. decreasing returns to scale


An isoquant lying above to the right of another represents ______ (JAMB 2013)

A. a higher output level
B. constant returns to scale
C. cover-capacity utilization
D. a lower output level.

 

 

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