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butalik [34]
3 years ago
8

If a new home can be constructed for $150,000, what is the opportunity cost of federal defense spending, measured in terms of pr

ivate housing? (Assume a defense budget of $700 billion.)
History
2 answers:
elena-s [515]3 years ago
5 0
Opportunity cost of federal defense spending is a number of houses which can be built using $600 billion. It's calculated as follows:

600000000000/150000=4000000
So opportunity cost is 4 millions houses.
stich3 [128]3 years ago
3 0

Answer:

$ 4666666.67

Explanation:

given,

assume defense budget = $700 billion

A new home can be for constructed = $150,000

opportunity cost is one in which the benefits is  sacrifice of the next best alternative, here the next best alternative is expenditure on defense budget.

hence the cost is

           = \dfrac{700,000,000,000}{150,000}    

           = $ 4666666.67

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