Explain the following concepts using appropriate examples i. Opportunity cost ii. Scarcity – NABTEB QUESTION

i. Opportunity cost is the best alternative want sacrificed in order to satisfy another want due to scarcity of resources. For example, a farmer may utilize his limited resource to produce cocoa instead of yams. The yams foregone is the opportunity cost of the cocoa produced,

ii. Scarcity means inadequate supply of economic goods and services, money, time productive resources, goods and services are all limited in supply for example, a student may be in nee of a pair of shoes and text book on economics each costing N1000, if the student has a total sum of N1200. It means he does not have enough to satisfy the two wants. This implies that his resources are scarce.