The opportunity cost of government purchases is greater when financed by borrowing than when financed by taxes.
The opportunity cost of government purchases is the true burden of government activity,however financed.

Question

Quizplus · Accepted Answer

The opportunity cost of government purchases is the same regardless of whether it is financed by borrowing or taxes, as it represents the value of the next best alternative use of resources.

The Opportunity Cost of Government Purchases Is Greater When Financed