When a state government chooses to build more roads, the resources used are no longer available for public education programs. This dilemma illustrates the concept of
A) production expenses.
B) unemployment issues.
C) unintended consequences.
D) opportunity cost.

Question

Quizplus · Accepted Answer

The concept being illustrated is opportunity cost, which refers to the trade-off or sacrifice of one option in favor of another. In this scenario, the state government has to choose between investing in building more roads or funding public education programs. Choosing to build more roads means that the resources, such as finances and labor, used towards that option are no longer available for investing in education programs. Therefore, the opportunity cost of building more roads is the potential gains that could have been achieved through investing in education programs.

When a State Government Chooses to Build More Roads, the Resources