NABTEB QUESTIONS

Explain the concept of i. Opportunity cost ii. Unemployment iii. Economic growth – NABTEB QUESTION

i. Opportunity cost is the alternative forgone in order to satisfy a particular want. For example if a consumer has a pressing need of food items and a television set and his limited resources could purchase only the food items, the television not bought is the opportunity cost.

i. Unemployment: unemployment refers to a situation when people who are able and willing to work at the current wage rate cannot secure a job.

ii. Economic growth simply means a sustained increased in the quantity of goods and services produced in an economy.

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