When the Calgary city manager faces a complaint that the city council chamber podium is not accessible to individuals with disabilities,he responds that the $1 million improvement will not happen because "that money could be spent building 70 curb ramps." Which economic principle does this statement BEST represent?
A) Markets move toward equilibrium.
B) The true cost of something is its opportunity cost.
C) "How much" is a decision at the margin.
D) When markets don't achieve efficiency,government intervention can improve society's welfare.

Question

Quizplus · Accepted Answer

The statement represents the economic principle that the true cost of something is its opportunity cost. The city manager is implying that the $1 million spent on improving the council chamber podium for individuals with disabilities would be better spent on building curb ramps, which would have a greater opportunity cost if not built.

When the Calgary City Manager Faces a Complaint That the City