We make choices every day.

We have to,
as we have limited resrouces but so many
wants. We therefore have to decide which
wants we will satisfy and those we will
not. All choices involve giving something
up is called Opportunity Cost.
Opportunity Cost is the cost of a decision in
terms of the best alternative given up to
achieve it. It is the best alternative forgone.
CONSUMERS WORKERS

 Consumers are buyers and  Undertaking one job

users of goods and involves an opportunity cost.
services. We all are People employed as
consumers. The vast teachers might also be able
majority of us cannot buy to work as civil servants.
everything we like. We They need to carefully
can sellect the one with consider their preference for
wides and the most the jobs available.
accurate informative
coverage.
PRODUCERS
 Producers have to decide
what to make. In deciding
what to produce, private
sector firms will tend to
choose the option which will
give them the maximum
point.
GOVERNMENT
 Government has to carefully
consider, its expenditure of
tax revenue on various
things. To pay higher taxes,
people may have to give up
the opportunity to buy
certain products to save.
This mean that it takes resources
to produce them and hence,
their production involves an
opportunity cost. They are
limited in supply. Almost every
good and service is economic
good.
 Free goods are much rarer.
Economists define free good as one,
which takes no resources to make it
and thus does not involve an
opportunity cost.

Example of free goods are water

and sunshine.
A Production Possibility Curves (PPC) is
also called an opportunity cost curve, a
production possibility boundary (PPB) and
a production possibility frontier (PPF).
A PPC shows the maximum output of two
products and combinations of these
products that can be produced with
existing resources and technology.
Production Possibility Curve (PPC) is
a graph/table that shows the
maximum possible combinations
of outputs that can be produced
from given inputs.