a. What is the opportunity cost of one aircraft carrier?_
11 airliners.
Explanation: By converting the amounts of the two goods, 55,000 airplanes equal 5,000 aircraft carriers, one may calculate the potential cost of an aircraft carrier. Thus, 1 carrier equals 55,000/5,00 = 11 aircraft. Therefore, 11 jumbo jets are the opportunity cost of a carrier.
b. What is the opportunity cost of 300 miles of highway?
The most preferable alternative that was rejected as a result of a choice.
c. What other information would you need to decide on the best combination of defense spending and highway construction?
generates jobs directly and can improve economic output indirectly through the spillover of technology and human capital to the civilian economy.
