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JAMB Economics 2008 Question 1

Question 1

Basic Concepts

The production possibility curve can be used to explain the underlying concepts of

  1. A.scale of preference and choice
  2. B.opportunity cost and choice
  3. C.wants and means
  4. D.opportunity cost and scale of preference
Show the answer and explanation

Answer: B (opportunity cost and choice)

Explanation

The PPC shows the choices open to a society with scarce resources, and the amount of one good given up to get more of the other is the opportunity cost.