NECO 2003 Economics · Question 46
Abdul is faced with a choice between buying a new NOTE book and a pen with N10. Since the N10 can NOT give him…
Question
Abdul is faced with a choice between buying a new NOTE book and a pen with N10. Since the N10 can NOT give him both items he decide to buy NOTE book. The money cost to him is
- A.N10
- B.N20
- C.N30
- D.N40
- E.N50
Answer: A. N10
Explanation written with AI and checked against the answer key
Analyze the question: Abdul has N10. He can buy either a notebook or a pen, but not both. He chooses the notebook. The question asks for the money cost of that choice.
Concept: Two ideas are easy to confuse here:
- Opportunity cost is the next best alternative given up. For Abdul, that is the pen.
- Money (real/monetary) cost is the actual amount of money spent to get the item.
Solution:
- Abdul has N10 in total.
- He spends all of it on the notebook.
- The money cost of the notebook is therefore the amount he paid, which is N10.
The other options (N20 to N50) are not supported by anything in the question. The only figure given is N10, so they are distractors.
Answer: The money cost to him is N10, which is option A.
Tip: When a question says "money cost," look for the price actually paid. When it says "opportunity cost," look for the next best alternative given up, which here would be the pen, not a naira amount.
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