If the state government allocates additional spending on education programs,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

The opportunity cost of allocating additional spending on education programs is measured in terms of the best alternative uses for that money. This means that if the government decides to spend more money on education programs, they must consider the other important areas where the same money could have been utilized such as healthcare, defense or infrastructure development. Therefore, the opportunity cost is not zero, nor is it just the amount of additional spending. Also, taxes being raised to fund the spending is not the sole factor to consider while measuring the opportunity cost.

If the State Government Allocates Additional Spending on Education Programs,the