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AssignmentMultiple Choice

Opportunity Cost

Question 1 • FL-2106010-M/J Civics B-CR

Government policy decisions create opportunity costs when

Answer
A
resources spent on one issue cannot be used on another.
B
the benefits of a decision are greater than the cost.
C
the public places a low value on the expense of the decision.
D
unlimited resources are spent equally on all issues.

Explanation

Opportunity cost is the value of the next-best alternative that must be given up when a choice is made. Government resources are limited, so spending them on one issue means they cannot be spent on another. Therefore, the correct choice is “resources spent on one issue cannot be used on another.”

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