The Opportunity Cost to a City for Using Local Tax

question 44

Multiple Choice

The opportunity cost to a city for using local tax revenues to construct a new park is the:

• A) best alternative foregone by building the park.
• B) dollar cost of constructing the new park.
• C) dollar cost of the old park.
• D) increased taxes necessary to pay for maintenance of the new park.

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Definitions:

Statement of Stockholders' Equity

The statement of stockholders' equity is a financial document that shows changes in the value of a company's equity over a specific period, including elements like issued shares and retained earnings.

Dividend

A payout of a portion of a company's earnings to its shareholders, typically in the form of cash or stock.

Sole Proprietorship

Sole Proprietorship is a business structure owned and operated by one individual, where there is no legal distinction between the owner and the business.

Legal Entities

Entities recognized by law that have rights and responsibilities, such as corporations, partnerships, and sole proprietorships.