The 150.00 Naira which Olu would have used to purchase a textbook was used to buy a T-shirt . This implies that

Assessment: WAEC SSCE - Economics - 2005 (Objective) Subject: Economics

Question 1 Report

The 150.00 Naira which Olu would have used to purchase a textbook was used to buy a T-shirt . This implies that
Answer Details
When Olu chose to use the 150.00 Naira to buy a T-shirt instead of a textbook, he had to forgo the opportunity of buying the textbook. This forgone alternative is referred to as the opportunity cost. Therefore, Olu's opportunity cost of buying the T-shirt is the textbook he could have purchased with the same amount. On the other hand, the 150.00 Naira used to purchase the T-shirt is Olu's money cost or actual cost. So, the statement "Olu's opportunity cost is the textbook" is the correct answer.
Read lesson note on Methods And Tools Of Economic Analysis (JAMB)
Read lesson note on Economics As A Science (JAMB)
View Answer

Related Questions

1

The production factor, whose entire world supply is fixed is
2

when a worker changes from one tye of job to another, it is called
3

when all factors input are reduced by half, the production possibility curve will shift
4

which of the following determines the size of a country's population ? (I) Birth rate (II) Death rate (III) Migration rate (IV) Importation rate (V) Unemploy...
5

A list of consumer's wants arranged in order of priorities is known as
6

Farming, mining and fishing are
7

Economic activities are undertaken to solve the problem of
8

The remuneration of the entrepreneur as a factor of production is called

Download The App On Google Playstore

Everything you need to excel in your exams

Green Bridge CBT Mobile App
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning