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Friday, 17 April 2026
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Economics Past Questions and Answers

Topic: The concepts of cost

Jamb Economics Questions - The concepts of cost

Question 16:
If a firm doubles its output and its cost increase by 60%, the firm is experiencing
  • A Increase cost
  • B Economies of scale
  • C Decreasing returns
  • D Decreasing cost
  • E None of the above
View Answer & Explanation
Question 17:
If you do not have to give anything in order to get a particular thing, then its opportunity cost is?
  • A Zero
  • B Not measurable
  • C Its price in money
  • D Infinite
  • E Equal to one
View Answer & Explanation
Question 18:
Opportunity cost is best defined as?
  • A The penalty for not seizing golden opportunities
  • B Sacrificed alternative (output, income etc.)
  • C The cost of creating job opportunities
  • D Payment made to an industrial worker
  • E The difference between fixed and variable costs
View Answer & Explanation
Question 19:
if AC = Average Cost of production ,
TC = Total Cost of production
VC = Variable Cost of production
FC = Fixed Cost of production
Q = Quantity of goods produced
Then,
  • A AC = TC; TC = VC + FC
  • B AC = (TC) Q: TC = VC + FC
  • C AC = TC; TC = (VC)(FC) Q
  • D AC = TC- FC: VC = TC- AC
  • E AC = TC ; TC = VC + AC Q
View Answer & Explanation
Question 20:
\(\begin{array}{c|c}
\text{Unit of output} & \text{Table cost}\\
\hline
1 & 20 \\
2 & 32 \\
3 & 42 \\
4 & 48 \\
5 & 50 \\
\end{array}\)
in the above table, the marginal cost of the 3rd unit of output is
  • A 12
  • B 6
  • C 10
  • D 2
  • E 9
View Answer & Explanation