Law Of Diminishing Returns Jamb Economics Past Questions
Question 6
A production possibility curve shows?
- A. how much of the resources of society are used to produce a particular commodity
- B. the rate of inflation
- C. the rate of unemployment in the economy
- D. the various combinations of two commodities that can be produced
Question 7
The law of Diminishing Returns begins to operate when?
- A. total product begins to rise
- B. total product begins to fall
- C. marginal product begins to fall
- D. marginal product begins to rise
Question 8
If units of a variable factor are increasingly added to a fixed factor and the marginal physical product keeps increasing, production is said to be taking place under conditions of?
- A. increasing returns to the variable factor
- B. increasing returns to scale
- C. constant returns to variable factor
- D. external economies of scale
Question 9
A firm is at its optimum size when?
- A. it produce the greatest output at a minimum cost
- B. it has a motive to increase output
- C. marginal cost equals marginal revenue
- D. marginal cost is less than marginal revenue
Question 10
If a company doubles all its inputs and discovers that its output is more than doubles, we can say that the company is experiencing
- A. Increasing Marginal utility
- B. Diseconomies of scale
- C. Increasing costs
- D. Constant returns to scale
- E. Increasing returns to scale
