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Musa has a choice of buying a shirt, a book and a bag. What is...

Economics
JAMB 2009

Musa has a choice of buying a shirt, a book and a bag. What is the opportunity cost of buying a book?

  • A. A bag only
  • B. A book and a bag
  • C. A shirit and a bag
  • D. A shirit only
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Correct Answer: Option C
Explanation

The opportunity cost is simply explained as the foregone alternative. It is what you give up in order to buy something else.

In this case, Musa can either buy a shirt, a book, or a bag, but cannot buy all of them at the same time. If he decides to buy a book, the bag and shirt that he did not buy are the opportunity cost.


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