Which of the following would NOT be an opportunity cost of fighting the war in Iraq?
A)The $5 billion per month spent on research to cure breast cancer.
B)A $5 billion per month cut in income taxes.
C)A $5 billion per month investment in high speed rail systems between 12 major cities in the country.
D)The $5 billion per month cost of fighting the war.
E)A $5 billion per month program that invested in low-income housing across the country.

Question

Quizplus · Accepted Answer

Opportunity cost refers to the value of the next best alternative that is forgone as a result of making a decision. In this context, the cost of fighting the war itself (D) is not an opportunity cost, because it is the actual expense incurred. The other options (A, B, C, E) represent alternative uses of the funds that could have been pursued if the money had not been spent on the war.

Which of the Following Would NOT Be an Opportunity Cost