Neco Model Questions Vol1 2023 Economics Question 24

Practice objective / multiple choice question 24 from the 2023 Neco Model Questions Vol1 Economics examination.

Neco Model Questions Vol1 2023 Economics Objective / Multiple Choice Easy Difficulty
Question 24 NECO_MODEL_QUESTIONS_VOL1 • 2023 • ECONOMICS • objective

A farmer can allocate all his resources to produce either 100 bags of rice or 150 bags of beans in a season. If he decides to produce 40 bags of rice, what is the maximum number of beans he can produce without reducing rice output? Also state the opportunity cost of one bag of rice in terms of beans.

Answer Options

A. Maximum beans = 95; Opportunity cost of 1 bag of rice = 1.2 beans
B. Maximum beans = 80; Opportunity cost of 1 bag of rice = 1.8 beans
C. Maximum beans = 90; Opportunity cost of 1 bag of rice = 2 beans
Correct Answer D. Maximum beans = 90; Opportunity cost of 1 bag of rice = 1.5 beans
Correct Answer
D
Correct Option:
Maximum beans = 90; Opportunity cost of 1 bag of rice = 1.5 beans

About This Question

This is Neco Model Questions Vol1 2023 Economics Question 24. It is one of the objective questions from the 2023 Neco Model Questions Vol1 Economics examination.

Difficulty level: Easy .

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