Read the scenario. During her campaign for the US Senate, Candidate A complains that the enormous federal transportation budget takes money directly out of public school classrooms, which, consequentially, negatively affects the lives of children in the country. According to Candidate A, what is the opportunity cost of the large transportation budget?
Answer
A
Public school teachers are in a better position to educate children than teachers in other countries.
B
There is not enough money to provide adequate funding for schools to educate children.
C
Public school teachers can use limited funds in creative ways to educate children in the country.
D
There is still enough money available to provide the country’s children with an education.
Explanation
An opportunity cost is the benefit given up when resources are used for one purpose instead of another. Candidate A says the transportation budget takes money away from classrooms, leaving less funding for schools. Thus, the opportunity cost is that there is not enough money to adequately fund schools to educate children, choice B.
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