Post Utme Pan Atlantic University 2018 Economics Question 7

Practice objective / multiple choice question 7 from the 2018 Post Utme Pan Atlantic University Economics examination.

Post Utme Pan Atlantic University 2018 Economics Objective / Multiple Choice
Question 7 POST_UTME_PAN-ATLANTIC_UNIVERSITY • 2018 • ECONOMICS • objective

A firm is considering two production techno\logies: one that uses 2 units of labor and 3 units of capital to produce 10 units of output, and another that uses 3 units of labor and 2 units of capital to produce 10 units of output. Which techno\logy is more efficient?

Answer Options

A. The first techno\logy is more efficient because it uses less labor and capital to produce the same output.
Correct Answer B. The second techno\logy is more efficient because it uses less labor and capital to produce the same output.
C. Both techno\logies are equally efficient because they produce the same output u\sing the same amount of labor and capital.
D. Neither techno\logy is more efficient because they produce the same output u\sing different amounts of labor and capital.
Correct Answer
B
Correct Option:
The second techno\logy is more efficient because it uses less labor and capital to produce the same output.

About This Question

This is Post Utme Pan Atlantic University 2018 Economics Question 7. It is one of the objective questions from the 2018 Post Utme Pan Atlantic University Economics examination.

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