Question

which of the following is an opportunity cost of building a new public high school?
change in the annual tax rate to pay for the new school
cost of hiring teachers for all the subjects at the new school
cost of constructing the new school at a later date
other goods and services given up in order to build the school
question 8
to save money, taylor decided not to go to a concert where her favorite musician was performing. what was the opportunity cost of that decision?
having extra money
having time to study
having fun at the concert
spending time at home

Explanation:

First Question (Opportunity Cost of Building a New Public High School)

Opportunity cost is the value of the next - best alternative foregone. When building a new public high school, the resources (money, labor, materials, etc.) used for the school could have been used for other goods and services.

• "Change in the annual tax rate to pay for the new school" is a consequence of financing the school, not an opportunity cost.
• "Cost of hiring teachers for all the subjects at the new school" is a direct cost of the school, not an opportunity cost.
• "Cost of constructing the new school at a later date" is just a different timing of the same cost, not an opportunity cost.
• "Other goods and services given up in order to build the school" fits the definition of opportunity cost as it is what is sacrificed to build the school.

Opportunity cost is what is given up when a choice is made. Taylor decided not to go to the concert to save money.

• "having extra money" is the benefit of her decision, not the opportunity cost.
• "having time to study" is not related to the concert - going decision (the decision was about saving money by not going to the concert, not about time for study).
• "having fun at the concert" is what she gave up by not going to the concert, so this is the opportunity cost.
• "spending time at home" is not the relevant foregone benefit related to the concert - going decision.

Answer:

Other goods and services given up in order to build the school

Second Question (Opportunity Cost of Taylor's Decision)