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WAEC Economics 2021 Question 2

Question 2

Basic Concepts

A consumer with $10 needs a dress, a pair of shoes, a handbag and jewelry costing $20, $10, $7 and $3 respectively. The opportunity cost of buying the pair of shoes is the

  1. A.dress.
  2. B.jewelry.
  3. C.handbag and jewellery.
  4. D.dress and jewellery.
Show the answer and explanation

Answer: C (handbag and jewellery.)

Explanation

Spending all $10 on shoes means giving up the handbag and jewellery, which together cost $10 and were the next affordable choice.