With a Budget of $200 Million,the Government Can Choose to Purchase

question 126

Multiple Choice

With a budget of $200 million,the government can choose to purchase 4 helicopters or repair 200 km of highway. FIGURE 1-1 Refer to Figure 1-1.If the government chooses to allocate all $200 million to highway repair,we can say that

• A)the opportunity cost of the highway repair is uncertain.
• B)the opportunity cost of the highway repair is $0.
• C)the opportunity cost of the highway repair is 4 search and rescue helicopters.
• D)there is no opportunity cost involved because the government has achieved its objectives.
• E)there is no opportunity cost involved because the government stayed within its budget.

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