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Opportunity cost

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Question 8

A local government decides to allocate its budget to constructing a new public park instead of upgrading the town's library system. The opportunity cost of this decision is defined as:

the total financial cost of building the new public park

the loss of tax revenue from the area designated for the park

the benefits of the library system upgrades that are foregone

the future maintenance costs associated with both the park and the library

Opportunity cost Questions

  1. A Level
  2. /Economics
  3. /Opportunity cost