Production Theory of Cost and Revenue Generix Content - Production Theory of Cost and Revenue
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"Production Theory of Cost and Revenue" question number distribution across years
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WAEC questions for "Economics :: Production Theory of Cost and Revenue"
Q1

A society that operates below the production possibility curve is using its productive resources

A

optimally

B

efficiently

C

inefficiently

D

maximally

E
Q2

What accounts for the 'U-shaped' of the short run average cost (AC) curve?

A

The law of variable proportions

B

Increasing returns to scale

C

Decreasing use of inputs

D

Changing output during the production period

E
Q3

Manufacturing involves the process of 

A

making goods available

B

providing finished products

C

changing items to new states

D

producing capital goods only

E
Q4

The reward to capital as a factor of production is

A

rent

B

wage

C

interest

D

commission

E
Q5

Mining is an example of 

A

tertiary production

B

primary production

C

secondary production

D

advanced production

E
Q6

Given the fixed cost is ₦500.00 variable cost is ₦1500.00 and output is 50units, what will be the average cost of producing one unit?

A

₦2,000

B

₦60

C

₦50

D

₦40

E

₦30

Q7

Which of the following is regarded as fixed cost?

A

Cost of raw materials

B

Cost of fuel

C

Cost of light

D

Rent on land

E

Labour wages

Q8

If a producer sells 1kg of rice for ₦2.00 and his marginal product is 100kg, what is the highest wage he can pay the marginal labourer?

A

 ₦20

B

 ₦30

C

 ₦50

D

 ₦100

E

 ₦200

Q9

Which of these does not relate to the law of comparative advantage?

A

The law of comparative advantage was propounded by David Ricardo

B

The law stresses the importance of relative efficiency

C

In order to specialise a country must have absolute advantage

D

The law is based on opportunity cost principle

E

The principle if followed, should increase total world output

Q10

Which of these factors does not affect revenue allocation in Nigeria?

A

Needs of an area

B

Size of the population of an area

C

Number of industries and land area

D

Revenue derivable from an area

E

Development needs of the country