Question 6
WAEC_MODEL_QUESTIONS_VOL1
•
2021
•
ECONOMICS
•
objective
Define "opportunity cost" in economics and give a specific example involving a farmer who must choose between planting maize or beans.
Answer Options
A.
Opportunity cost refers to the time spent on production; e.g., if the farmer plants maize, the opportunity cost is the hours he could have spent harvesting beans.
Correct Answer
B.
Opportunity cost is the value of the next best alternative foregone; e.g., if the farmer plants maize, the opportunity cost is the profit he could have earned from beans.
C.
Opportunity cost is the total monetary expense incurred; e.g., if the farmer plants maize, the opportunity cost is the cost of the seeds and fertilizer for maize.
D.
Opportunity cost is the profit lost from the chosen activity; e.g., if the farmer plants maize, the opportunity cost is the profit he could have earned from maize itself.
Correct Answer
B
Correct Option:
Opportunity cost is the value of the next best alternative foregone; e.g., if the farmer plants maize, the opportunity cost is the profit he could have earned from beans.
About This Question
This is
Waec Model Questions Vol1
2021
Economics
Question 6.
It is one of the
objective
questions from the
2021
Waec Model Questions Vol1
Economics
examination.
Difficulty level:
Easy
.