The town of Jensen Valley is deciding what to do with an empty lot it owns. There are no parks in this community, so some residents want to build a small park for the local children. Others want to build an arts center that will provide classes and activities for residents. As a final step, the Jensen Valley officials need to look at the opportunity costs of their decision beyond the money that will be spent.
Answer
A
If the art center is chosen, children in the community will not have a public outdoor play area.
B
If the art center is chosen, many people may come to the community to see the art exhibits.
C
If the small park is chosen, the Jensen Valley officials can refer to its success in their reelection campaigns.
D
If the small park is chosen, Jensen Valley will need to hire custodians to keep the park clean.
Explanation
An opportunity cost is the value of the best alternative that must be given up when a choice is made. If Jensen Valley builds the arts center, it gives up the chance to create a public outdoor play area for children. That lost benefit is described in choice A; the other choices describe possible benefits or costs of the selected project, not the alternative being sacrificed.
AI-written and checked against the verified answer.