Neco Model Questions Vol1 2024 Economics Question 1

Practice essay / theory question 1 from the 2024 Neco Model Questions Vol1 Economics examination. This question covers Basic Economic Concepts .

Neco Model Questions Vol1 2024 Economics Essay / Theory

Topic: Basic Economic Concepts

Question 1 NECO_MODEL_QUESTIONS_VOL1 • 2024 • ECONOMICS • essay

A small community in northern Nigeria has limited resources to allocate between two projects: building a primary health centre and constructing a borehole for clean water. The community can either allocate ₦2,000,000 to the health centre, which would serve 500 patients per year, or allocate the same amount to the borehole, which would provide clean water to 1,200 households. The community decides to build the health centre.

Question Parts

( a )

Define scarcity and explain how it is illustrated in the above situation.

( b )

Using the concept of opportunity cost, calculate the implicit cost of the decision to build the health centre.

( c )

Discuss two possible long‑term economic consequences of the community’s choice, linking them to the concepts of utility and productivity.

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About This Question

This is Neco Model Questions Vol1 2024 Economics Question 1. It is one of the essay questions from the 2024 Neco Model Questions Vol1 Economics examination.

The question covers Basic Economic Concepts .

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