If the state government allocates additional spending on education, the opportunity cost is:
A)zero.
B)the dollar amount of the additional spending.
C)considered only if taxes have to be raised to fund the spending.
D)measured in terms of the best alternative uses for that money.

Question

Quizplus · Accepted Answer

The opportunity cost of allocating additional spending on education is measured in terms of the best alternative uses for that money. This means considering what other uses the money could have been put towards and what benefits or costs would have resulted from those alternative uses. Choices A, B, and C are incorrect because they do not accurately reflect the concept of opportunity cost.

If the State Government Allocates Additional Spending on Education, the Opportunity