Neco Model Questions Vol1 2017 Economics Question 1

Practice essay / theory question 1 from the 2017 Neco Model Questions Vol1 Economics examination. This question covers Scarcity, Opportunity cost, Choice, Positive and normative statements .

Neco Model Questions Vol1 2017 Economics Essay / Theory

Topics: Scarcity Opportunity cost Choice Positive and normative statements

Question 1 NECO_MODEL_QUESTIONS_VOL1 • 2017 • ECONOMICS • essay

A small community in a rural area has a limited amount of arable land, a fixed number of workers and a given amount of capital equipment. The community must decide how to allocate these scarce resources among farming, small‑scale manufacturing and education.

Question Parts

( a )

Define scarcity and explain why it is the fundamental problem of economics.

( b )

Explain the concept of opportunity cost and illustrate it with an example taken from the community described above.

( c )

Distinguish between a positive statement and a normative statement, and give one of each related to the community’s resource allocation.

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About This Question

This is Neco Model Questions Vol1 2017 Economics Question 1. It is one of the essay questions from the 2017 Neco Model Questions Vol1 Economics examination.

The question covers Scarcity, Opportunity cost, Choice, Positive and normative statements .

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