If the provincial government allocates additional spending on education programmes,the opportunity cost is:
A) zero.
B) the dollar amount of the additional spending.
C) considered only if taxes have to be raised to fund the spending.
D) measured in terms of the best alternative uses for that money.

Question

Quizplus · Accepted Answer

Opportunity cost is measured in terms of the best alternative uses for that money. When the government allocates additional spending on education programs, it means they have chosen to allocate resources to education instead of other possible alternatives, such as healthcare, infrastructure, or tax cuts. Therefore, the opportunity cost is the value of the best alternative foregone, which could be measured in terms of the benefits or returns expected from that alternative use of the resources.

If the Provincial Government Allocates Additional Spending on Education Programmes,the