The opportunity cost to a city for using local tax revenues to construct a new park is the:

Question

Quizplus · Accepted Answer

The opportunity cost refers to the next best alternative foregone by choosing a particular option. In this case, using local tax revenues to construct a new park means that the city has to give up other potential uses for those funds such as improving roads, building a new school, or investing in public transportation. Therefore, the opportunity cost of building the park is the best alternative foregone.

The Opportunity Cost to a City for Using Local Tax