The opportunity cost of constructing a new public highway is the:
A) Money cost of hiring contractors and construction workers for the new highway
B) Value of other goods and services that are sacrificed in order to construct the new highway
C) Expected cost of constructing the new highway in a future year
D) Value of shorter driving times and distances when the new highway is completed

Question

Quizplus · Accepted Answer

The opportunity cost of constructing a new public highway is the value of other goods and services that are sacrificed in order to construct the new highway. This includes the resources that could have been used to produce alternative goods and services, such as schools or hospitals, as well as the potential environmental costs of building the highway. The money cost of hiring contractors and construction workers is a component of this opportunity cost, but it is not the only factor to consider. The expected cost of constructing the new highway in a future year and the value of shorter driving times and distances when the new highway is completed are both potential benefits or costs of the highway, rather than opportunity costs.

The Opportunity Cost of Constructing a New Public Highway Is