IMPORTANCE OF OPPORTUNITY COST TO INDIVIDUAL
- It helps individual to make decision.
- It helps individual to allocate scarce resources.
- Judicious use of resources.
- Prioritizing our wants.
- It helps an individual to make wise choice.
IMPORTANCE OF OPPORTUNITY COST TO FIRMS
- Decision making.
- Helps to decide the method of production.
- Helps in project execution.
- Guides policy formulation and implementation.
Importance of Opportunity Cost to the Government
- Resources allocation.
- Decision making.
- Preparation of budget.
- Helps in project execution.
EVALUATION
- List 3 importance of opportunity cost to individual.
- State 2 importance of opportunity cost to a firm
REVISION/ GENERAL EVALUATION
- List ten renowned Economics in the world.
- Why is the scale of preference important?
- Mention five importance of studying economics.
- Give five definitions of Economics by various prominent Economists.
- Differentiate between Want and Needs.
WEEKEND ASSIGNMENT
- Opportunity cost is the item…………. (a) left unbought (b) nominal cost (c) bought (d) money cost
- Opportunity cost helps to ensure…….. allocation of resources (a) wrong (b) optimum (c) minimum (d) unhealthy
- Nominal cost is the same thing as………… (a) real cost (b) fixed cost (c) money cost (d) variable cost
- ……………….. is a situation where a particular goods is traded off in favour of another goods (a) Explicit cost (b) opportunity cost (c) implicit cost (d) marginal cost
- The problem of making the right choice is resolved with the use of……….. (a) consumer price index (b) preferential treatment (c) scale of preference (d) allocation of resources
SECTION B
- Differentiate between nominal cost and real cost
- State three importance of opportunity cost to each of the economic agents
See also