Neco 2022 Economics Question 1

Practice essay / theory question 1 from the 2022 Neco Economics examination. This question covers Basic Economic Concepts .

Neco 2022 Economics Essay / Theory

Topic: Basic Economic Concepts

Question 1 NECO • 2022 • ECONOMICS • essay

A small open economy produces only two goods: rice and cloth. The country imports wheat and exports cotton. The government is considering a policy to increase national income.

Question Parts

( a )

Define "opportunity cost" and explain how it applies to the production of rice versus cloth in this economy.

( b )

If the economy can produce either 1,200 tonnes of rice or 6,000 metres of cloth per year, calculate the opportunity cost of producing one tonne of rice in terms of cloth.

( c )

Discuss two ways the government could raise national income without increasing the production of rice or cloth, and evaluate the likely impact of each method on the economy.

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About This Question

This is Neco 2022 Economics Question 1. It is one of the essay questions from the 2022 Neco Economics examination.

The question covers Basic Economic Concepts .

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