The Opportunity Cost of Constructing a New Public Highway Is

question 70

Multiple Choice

The opportunity cost of constructing a new public highway is the:

• A) Money cost of hiring contractors and construction workers for the new highway
• B) Value of other goods and services that are sacrificed in order to construct the new highway
• C) Expected cost of constructing the new highway in a future year
• D) Value of shorter driving times and distances when the new highway is completed

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Definitions:

Variable Food Costs

Variable food costs change with the level of production or sales, such as the cost of ingredients for a restaurant.

Performance Evaluation

The process of assessing the efficiency and effectiveness of employees, departments, or organizations, often for the purpose of making decisions related to promotions, compensations, and training.

Other Departments

A general term that refers to various separate units or divisions within a company, each responsible for specific functions or operations not specified by previous terms.

Transfer Price

The cost at which products or services are exchanged between departments within the same corporation or among associated companies.