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JAMB questions for "Economics :: Factors of Production and their Theories"
Q1
The demand curve for factors of production
A
is perfectly elastic
B
slopes downwards
C
slopes upwards
D
is perfectly inelastic
E
Q2
The function of money which makes division of labour possible is its
A
unit of account
B
medium of exchange
C
store of value
D
standard of deferred payment
E
Q3
a strategy for curbing unemployment is to
A
implement government stabilization policy
B
increase government expenditure and decrease taxes
C
increase taxes and decrease government expenditure
D
ensure even distribution of job opportunities
E
Q4
The amount of labour hired depends os the
A
number of skilled labour available
B
marginal productivity of labour
C
skill of labour
D
price of there inputs
E
Q5
According to the theory of comparative advantage, specialization will result in
A
labour-intensive method of production
B
capital-intensive method of production
C
efficient allocation of resources
D
efficient allocation of output
E
Q6
The mobility of labour is mainly determined by
A
the age of workers
B
government policy
C
trade unions
D
wage rate differentials
E
Q7
When workers have a union, the supply of labour is said to be
A
monopolistic
B
oligopolistic
C
monopsonistic
D
competitive
E
Q8
The use of modern weaving machines in the production of local fabric will result in
A
an increase in the demand for labour
B
a decrease in the demand for labour
C
an increase in wages
D
a decrease in wages
E
Q9
A high rent on land will affect the cost of producing maize
A
positively
B
negatively
C
at the early stage of production
D
at the later stage of production
E
Q10
A classroom teacher is promoted to the rank of a principal. This is an example of
A
vertical mobility
B
lateral mobility
C
social mobility
D
horizontal mobility
E
Q11
The labour force of a country best describes
A
the number of people receiving pension
B
people within the working age
C
the number of people in paid employment
D
people within the retirement age
E
Q12
The division of labour require that the task to be performed
A
is simple but strenuous
B
must be done in stages
C
must be undertaken by experts
D
requires no special knowledge
E
Q13
The only factor of production that plays an active role in the production process is
A
capital
B
labour
C
entrepreneur
D
land
E
Q14
Minimum wage legislation will result in
A
greater supply of labour
B
reduced labour productivity
C
greater demand for labour
D
reduced income
E
Q15
Mobility of labour is higher when there
A
is a monopoly of jobs in one location
B
is intense competition for jobs in the same location
C
are no alternative jobs in the same location
D
are alternative jobs in the same location
E
Q16
In a car assembly plant, division of labour is demonstrated by
A
assigning each worker to a specific activity
B
assigning each worker a given number to produce
C
increasing the daily output
D
producing a specific model
E
Q17
During a conflict between management and workers, the union's bargaining power is based on
A
work-to-rule
B
negotiation
C
picketing
D
management decision
E
Q18

In the circular flow diagram beside, the arrow marked K indicates

A

the flow of the capital goods

B

payments to factors of production

C

payments for goods and services

D

the flow of economic rent

E
Q19
Maximum wage legislation seeks to
A
fix wages above the equilibrium wage rate
B
deter employers from exploiting their employees
C
ensure an upper limit to the wage payable
D
set wages below the equilibrium wage rate
E
Q20
A necessary condition for specialization in an economy is the existence of
A
a regulated market
B
a competitive market
C
adequate capital
D
a medium of exchange
E
Q21
The demand for labour is an example of
A
composite demand
B
joint demand
C
derived demand
D
competitive demand
E
Q22
When a union is composed of workers with the same skill, it is called
A
a technical union
B
a craft union
C
an industrial union
D
a workers' union
E
Q23
Occupational mobility as applied to factors of production means the ease by which
A
factors can be transferred from one form of use to another
B
resources can be transferred from one place to another
C
resources can be transformed from one form to another
D
factors can be transferred from one place to another
E
Q24
Improved labour efficiency can be measured by
A
the constancy of input-output ratio
B
an increase in input-output ratio
C
an increase in output-input ratio
D
an decrease in output-input ratio
E
Q25
The equilibrium wage in an economy is determined by the
A
supply and demand for labour
B
rate of inflation
C
workers union
D
public service
E
Q26
The efficiency of labour can be increased by
A
constant training of workers
B
retirement of workers on a regular basis
C
engaging expatriates only
D
placing an embargo on retirement
E
Q27
If the labour force in a given community is 2,000,000, in the wage employment 200,000 and the unemployed are 80,000, what is the unemployment rate in the communnity?
A
0.4%
B
40.0%
C
10.0%
D
4.0%
E
Q28
A major advantage of specialization and division of labour is that
A
time wastage will be minimized
B
trade unions will be encouraged
C
there will be a ready market for labour
D
workers will be adequately rewarded
E
Q29
Firms continue to employ workers until the wage rate equals the
A
marginal revenue product of labour
B
average product of labour
C
total product of labour
D
sum of marginal revenue and average revenue of labour
E
Q30

In the diagram below, if W1, W2, W3 and W4 are different wage rates, the minimum wage rate is

A

W1

B

W2

C

W3

D

W4

E
Q31
If high unemployment goes hand in hand with rising prices, the situation created is
A
hyper inflation
B
stagflation
C
moderate inflation
D
galloping inflation
E
Q32
When a worker earns more than the wage just sufficient to keep him in the job, the excess income is called
A
an opportunity cost
B
an economic rent
C
transfer earnings
D
surplus value
E
Q33
An entrepreneur will continue to employ labour up to a point where
A
cost are maximized
B
maximum efficiency is attained
C
wages are equal to marginal product of labour
D
marginal product of labour is equal to zero
E
Q34
Calculate the total number of people engaged in tertiary production from the data above
A
5 000 000
B
6 250 000
C
11 750 000
D
12 250 000
E
Q35
In the diagram above, full employment is indicated by
A
L
B
M
C
N
D
P
E
Q36
Labour productivity is the ratio of
A
labour to output
B
man-hours to output
C
output to man-hours
D
average product to man-hours
E
Q37
What is meant by labour supply?
A
Number of people in working population
B
Number of men and hours they work
C
Number of hours during which the middle aged persons work
D
Number of work force multiplied by the hours they work
E
Q38
The factor of production that has the highest degree of mobility is
A
land
B
labour
C
capital
D
entrepreneurship
E
Q39
Any payment to a factor of production in excess of what is necessary to keep that factor in its present employment is known as
A
real income
B
profit
C
economic rent
D
real wage
E
Q40
Unemployment can be reduced by
A
restricting the productive base of the economy
B
adopting capital-intensive techniques of production
C
adopting labour-intensive techniques of production
D
adopting a mixture of labour and capital-intensive techniques of production
E
Q41
An increase in the supply of labour in a factory while other things remain equal will lead to
A
an increase in the wage rate and an increase in the number of people employed
B
a decrease in the wage rate and a decrease in employment
C
an increase in the wage rate and decrease in employment
D
a decrease in the wage rate and an increase in employment
E
Q42
What type of unemployment is revealed by the dotted lines on the graph above?
A
Frictional unemployment
B
Cyclical unemployment
C
Circular unemployment
D
Under employment
E
Q43
One of the major advantage of specialization is that
A
the worker becomes a tendered of machines
B
it causes more employment of labour
C
less machinery is required for production
D
the worker waste less time between operations
E
Q44
Which of the following reward is associated with entrepreneurship as a factor of production by substituting factors until
A
Salaries
B
Profits
C
Interest
D
Rent
E
Q45
Which of the following is likely to hider labour mobility in Nigeria?
A
Higher wages elsewhere
B
Cultural similarities
C
Good accommodation elsewhere
D
Ignorance of job opportunities elsewhere
E
Q46
If X represents the factors of production and Y represents the factor price, which of the following sets of association is correct?
A
(Land, rent), (Capital, wages), (Labour, profit)
B
(Land, interest), (Capital, profit), (Labour, rent)
C
(Land, wages), (Capital, interest), (Labour, rent)
D
(Land, rent), (Capital, interest), (Labour, wages)
E
Q47
In the diagram beside what happens when the minimum wage is fixed at OW?
A
Unemployment is reduced
B
Unemployment results
C
The demand schedule will shift
D
The supply schedule will become steeper
E
Q48
The group of unemployed members of a community, who are physical handicapped or disabled is generally classified under umployment as
A
frictional
B
cyclical
C
residual
D
hidden
E
Q49
Efficiency of labour is enhanced by
A
involvement in own family affairs
B
mechanization processes
C
war against indiscipline
D
improved working condition and training
E
Q50
The residual of production which accrues to the ownership of land after all other expenses have been met is called
A
wages
B
rent
C
interest
D
profit
E
Q51
In the history of Economic Through, the concept of Division of Labour is usually associated with
A
David Rocardo
B
J.M. Keynes
C
Adam Smith
D
D. Karl Marx
E
Q52
The form of capital which is usually consumed of transformed into finished goods and services in the production process is called
A
industrial capital
B
social capital
C
fixed capital
D
circulating capital
E
Q53
To which of the following sectors do services belong?
A
Primary
B
Secondary
C
Tertiary
D
Construction
E
Q54
The main reason for charging interest is to
A
reward entrepreneurial effort
B
redistribute profits
C
reward investors for present use of capital
D
mobilise more funds for development
E
Q55
Capital consumption allowance refers to
A
personal consumption expenditure
B
indirect business taxes
C
depreciation of capital equipment
D
expenditure on capital equipment
E
Q56
Frictional unemployment
A
is total unemployment minus structural unemployment
B
occur when the unemployed are persons with specific training
C
occur when the number of vacancies
D
occurs when people are changing jobs
E
Q57
If a person receives a higher wage than would be necessary to induce him to work, he is said to be receiving
A
rent
B
profit
C
interest
D
surtax income
E
Q58
Mobility of labour is NOT affected by
A
optimum size of population
B
marriage and family
C
regulation of trade unions
D
period of training
E
Q59
Which of the following strategies will provide more employment opportunity for Nigerians
A
Investment in social services
B
Industrialization
C
Economic planning
D
Eradication of illiteracy
E
Q60
The amount of labour a producer hires relative to other factor inputs depends on the
A
price of labour or its wage
B
price of labour, machinery and other inputs
C
price of machinery
D
price of the other inputs
E
type of machinery