The opportunity cost of a new public highway is the
A) money cost of hiring contractors and construction workers for the new highway.
B) other goods and services that must be sacrificed to construct the new highway.
C) cost of constructing the new highway in a future year.
D) increased traffic from the use of the new highway.
E) cost of constructing the new highway in a previous year.

Question

Quizplus · Accepted Answer

The opportunity cost of a new public highway is the next best alternative foregone when resources are used to construct the highway. In this case, it is the other goods and services that must be sacrificed to construct the new highway. This is because resources used to build the highway could have been used to produce other goods and services that the society could have benefited from.

The Opportunity Cost of a New Public Highway Is the