Basic Economic Concepts

An agro-processing enterprise operating at full capacity can produce either $150\text{ bags}$ of cassava flour or $100\text{ bags}$ of garri per day using its fixed processing equipment. Assuming a constant rate of transformation between the two goods, what is the opportunity cost, in bags of cassava flour, of increasing garri production from $40\text{ bags}$ to $70\text{ bags}$ per day?

An artisan tailor with a total capital budget of $\text{N}60,000$ prioritizes her business needs in a scale of preference as follows:

1. Industrial sewing machine ($\text{N}35,000$)
2. Electric fabric cutter ($\text{N}25,000$)
3. Overlock edging machine ($\text{N}20,000$)
4. Backup power generator ($\text{N}40,000$)

Assuming she rationally allocates her available capital strictly according to her scale of preference, what is the opportunity cost of her choice?

A tailor receives a monthly allowance of $\text{N}40,000$ and arranges her pressing business needs in order of priority as follows:

1. Sewing machine maintenance: $\text{N}20,000$
2. Purchase of dress fabrics: $\text{N}20,000$
3. Workshop electricity bill payment: $\text{N}15,000$
4. Purchase of a new smartphone: $\text{N}15,000$

If she allocates her entire allowance strictly according to her scale of preference, what is the opportunity cost of her choice?

A rational student operating under a tight budget constraint needs to construct a scale of preference to allocate a limited monthly allowance of $\text{N}25,000$. Arrange the following competing items in descending order of priority (from top priority to lowest priority) according to the economic principles governing a scale of preference.

Match each decision-making scenario involving a municipal planning council's budget allocation on the left with its corresponding economic significance regarding the scale of preference on the right.

An agro-processing cooperative with a capital budget of $\text{N}250,000$ arranges its immediate expenditure needs in order of priority on a scale of preference as follows:

1. Repair of main grating machine — $\text{N}150,000$
2. Purchase of hydraulic press — $\text{N}100,000$
3. Installation of a solar drying shed — $\text{N}100,000$
4. Procurement of cassava tubers — $\text{N}80,000$

If the cooperative spends its budget strictly according to this scale of preference, what is the opportunity cost of acquiring the hydraulic press?

A civil servant receiving a fixed monthly salary constructs a scale of preference to allocate limited financial resources. Based on economic principles of urgency and relative importance of wants, arrange the following spending needs in order of priority from highest priority (most urgent) to lowest priority (least urgent).

A consumer has a fixed budget of ₦20,000 and urgently requires both a modern economic textbook and a scientific calculator, each priced at ₦20,000. If the consumer decides to purchase the economic textbook, what is the real cost of this choice?

A commercial poultry farmer operating under a strict budget constraint needs to construct a scale of preference to guide farm expenditure. Arrange the following financial needs in order of priority, from the most urgent (highest priority) to the least urgent (lowest priority).