Question

The opportunity cost of constructing a new public highway is the Multiple Choice expected cost of constructing the new highway in a future year. value of other goods and services that are sacrificed in order to construct the new highway. money cost of hiring contractors and construction workers for the new highway. value of shorter driving times and distances when the new highway is completed.

Answer 1

Answer: The opportunity cost of constructing a new highway is the value of other goods and services that are sacrificed in order to construct the new highway.

Explanation:

Opportunity cost is the loss of likely gain from other options when an alternative is chosen. Opportunity cost is the benefit not gotten due to not selecting the next best alternative. In economics, opportunity cost is an important concept as it describes the basic relationship between choice and scarcity.  

Opportunity cost plays a vital crucial role in ensuring that scarce resources are efficiently utilized. Opportunity costs is nit restricted to financial or monetary costs but also the real cost of forgone output and lost time. Opportunity cost for a product is the revenue that would have been derived from its alternative use.

The opportunity cost of constructing a new highway is the value of other goods and services that are sacrificed in order to construct the new highway. The opportunity cost could be the value for building of hospitals etc.