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WAEC Economics 1994 Question 36

Question 36

Theory of Production

Abstention from consumption enables capital to be produced. Such abstention is called

  1. A.saving
  2. B.production
  3. C.accumulation
  4. D.factors of production
  5. E.opportunity cost
Show the answer and explanation

Answer: A (saving)

Explanation

Not spending part of income on consumption is saving, which provides funds for capital formation.