If the government of Spain decides to spend less on the military and more on health care, the forgone spending on military items represents the _____ of the extra health care.

Question

Quizplus · Accepted Answer

The forgone spending on military items represents the opportunity cost of the extra health care. Opportunity cost refers to the cost of forgoing the next best alternative. In this case, the government will have to give up the opportunity to spend on military items to spend on health care, which represents the opportunity cost of the extra health care.

If the Government of Spain Decides to Spend Less on the Military