ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The extra cost of providingequipment and managers tooperate the airport efficiently.
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The closure of the airport itreplaces.
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The goods and services that couldhave been produced instead ofthe airport.
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The increase in taxation to thecitizens to pay for the newairport.
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Detailed explanation-1: -Answer and Explanation: The correct answer is b. Benefits foregone by not choosing an alternative course of action. Opportunity cost is the future income or cost that would have been earned or incurred if this alternative was chosen.
Detailed explanation-2: -When economists refer to the “opportunity cost” of a resource, they mean the value of the next-highest-valued alternative use of that resource. If, for example, you spend time and money going to a movie, you cannot spend that time at home reading a book, and you can’t spend the money on something else.
Detailed explanation-3: -The opportunity cost of economic growth is the reduction in the production of consumption goods in the existing period. For economic growth to be achieved, investments must be made, and the investments can only be realized if the present-day (current) manufacture (production) of consumption goods is foregone.